US President George W Bush has pledged $770 million to assist with international food aid following the surge in global food prices. The spiralling cost of food has already seen riots in many countries and requires a global solution to the issue. “We’re sending a clear message to the world that America will lead the fight against hunger for years to come,” said Mr Bush. The US commitment comes following a UN task-force being set up to discuss potential solutions to combat decreasing... ...Read more »
Concern over how quickly current world supplies are being drawn down has given commodity speculators all the ammunition they need to drive the price of rice through the roof. The price of rice from Thailand has nearly tripled since the beginning of the year and stands at record highs. Rice prices on the Chicago Board of Trade are up about 80 percent this year. While U.S. government and trade group officials have maintained that there is no shortage on the horizon, buyers have been streaming... ...Read more »
The Grocery Manufacturers Association (GMA) in America has blamed the food-for-fuel program for the high cost of commodities. The food-for-fuel legislation provides incentives to farmers to use corn in ethanol production and has seen production of ethanol triple over the past seven years. There has been a growing wave of discontent for the legislation as more than a quarter of corn is now directed to fuel instead of food production. It is considered that this then has a flow-on effect to... ...Read more »
In the past week there have been a number of stories written about the escalating prices of foods like rice and wheat but little has been discussed about dairy prices. Unfortunately, with the escalating costs of grain and petrol, dairy prices are going to rise as well. This is due to the need for grain to feed the cows and petrol for tractors and trucks which transport produce. As a result there are increased costs for farmers which will in turn be passed on to consumers. Read More →
The Western Australian Farmers Federation (Inc.) (WAFarmers) is calling on Prime Minister Kevin Rudd to fix government policies impacting on local food production as the first step in addressing international food shortages. WAFarmers President Mike Norton noted that Australian farmers have faced unfavourable government policy for well over a decade and, as a result, Australia has seen a decline in farmer numbers and agricultural sustainability, which has delivered poor financial returns on investments... ...Read more »
A combination of record low global inventory levels, weather induced supply side shocks, surging outside investor influence, record oil prices and structural changes in demand for grains and oilseeds have created an explosive environment for prices, a recently-released industry report from the world’s leading food and agribusiness bank, Rabobank, says. The Rabobank Global Focus report titled Grains & oilseeds – is it a new era for prices?, says that while it is still early days, the outlook... ...Read more »
As the price of food continues to rise protests have been becoming more prevalent. While few major protests have been held so far there is growing concern that continued rises will cause greater social unrest and political leaders in many Asian countries, particularly Myanmar, Thailand, China and the Philippines, are under immense pressure. In Argentina, where the urban population is significantly greater than the rural population, the Government sought to increase tariffs on grain exporters to try... ...Read more »
The price of rice is expected to continue rising beyond current record highs due to an inability for supply to meet demand. The price of rice has appreciated markedly since the beginning of the year, with rice prices almost doubling in this time. Global stocks are at there lowest level since 1976 and, with demand expected to outstrip supply by over 3 million tonnes this year, the price is only likely to rise further. Australia’s rice industry is unlikely to be able to take advantage of the... ...Read more »