FT.com / In depth - Rice traders hit by panic as prices surge

Rice is the basic food staple for half the world's population. Shortages not only pose a severe hardship to affected people, they have the potential to destabilize key regions. These include Asia, Africa, the Middle East and Latin America. Some of the affected countries have nuclear weapons or control strategic resources, including oil. We complain about the price of gas cutting into our privilege to drive personal cars and about rising prices for exotic foods shipped thousands of miles to our plates. Other countries are facing famine and energy costs beyond anything they can afford. Anyone thinks we can continue to enjoy the high life while the rest of the world goes hungry and energy costs skyrockets has to be living in a dreamworld. People with hungry children are not going to be held back by a border fence or a few Coast Guard patrol boats. If food riots bring down governments in strategic areas the price of oil could double.

This crisis has several causes. The most easily dealt with is bio-fuels.

We are starving people to appease enviromentalists. And buy votes in farm states. THis needs to stop now.

Also, China moving upscale food wise. More meat, thus less efficency. This will not stop.

Also India stopping rice exports. Understandablely but...


But more importantly this is a hint of all the "solutions" offered by enviromentalists. They all impose huge prices on the world economy that will hurt us somewhere.

I did not see this coming, but the cost of bio-fuels was going to land on someone somewhere.

As with solar power, carbon trading, ect.

I am curious. Could you be more specific regarding starving people to appease environmentalists? I am not sure which "environmentalists" you are referring to, because the term is so broad and inclusive. I like to think of myself as an environmentalist, in part, because I believe a healthy environment is ultimately the best insurance against many of the health and nutrition problems we now face. The term "pro environment" is usually synonomous with "pro future." Strip mining the oceans, draining ancient aquafers, exhausting once productive agricultural lands, covering once fertile farmlands with concrete and lawns, etc. inevitibly is self destructive. The proof of that is becoming increasingly evident.

Really you don't need to find a scapegoat for the rising costs. Environmentalists are no more thrilled with the use of corn or other food crops for ethanol production than you are. It's just supply and demand.

Big Picture:
Planet of fixed size.
Increasing population.
Some major population centers with rapidly increasing per-person buying power. They are quickly acquiring as much a taste for convenience, toys, meat, fuel, etc. as we have.

Even if the world had never known a single odious environmentalist, the problem would loom as large.

No, seriously, it would loom a lot larger. And how would it be resolved?

well im glad i live in the #1 rice growing state in america, California! yay me.

The increased, legislated use of bio-fuels is competeing with food production.

This contributes to the rapid rise in food prices.

Bio-fuels are part of the enviromentalist push for renewable energy sources.

Scapegoating is blaming someone for what they did not do. The legislated use of bio-fuels is in response to political pressure from enviromentalist. They are to blame, at least partially.


I do like your honesty though, with the implied acceptance that the pain caused by this is "just supply and demand". It is good that you realize that the steps demanded by enviromentalist will have consequences.

I hear so many people talk about SUVs and oil companies, as though they are the only ones who will suffer.




Not true. Without the use of goverment force to make people use bio-fuels, one of the main, if not the main cause of this world wide crisis would not exist.

I don't understand this panic. When price of food is low, EU gets accused of agricultural subsidies causing poverty in Africa. But when price of food rises, which means they should earn more money, its not good either, since they are reportedly starving. I'm sick of such news.

__________________
No loyalty towards the EU.

In Russia is freedom of speech. In America is also freedom after speech. -- Yakov Smirnoff

I am not sure where you are getting your information. What environmental groups are insisting on the use of biofuels? I try to keep informed re: energy issues, and I have been active in conservation efforts for a large part of my life. I do not not aware of conservation groups that are pushing to convert food crops into biofuels.

Biofuels are inherently less energy efficient than conventional oil based fuels. The production of biofuels not only cause as much or more release of CO2 into the atmosphere, it also results in the destruction of forests and natural wildlife habitat. I think if you do a little research you will find that most established conservation organizations oppose the destruction resulting from biofuels.

Perhaps you are confusing the position espoused by some environmental groups that some conventional energy production and use is resulting in habitat destruction and dangerous levels of CO2 and other greenhouse gasses. That is true and needs to be said. The frantic rush to grub out the last reserves of oil, coal and natural gas in a desperate and futile attempt to keep an unsustainable system working for a few more years ultimately leaves us with a degraded earth and far less for future generations to be able to use. Although we may not want to acknowledge it, we really do have a responsibility to future generations.

Wheeldog, while I agree with very little with the "environmental" movement, it is refreshing to read someone who understands that much of what is out there from the environmentalist movement is also destructive.

JunkScience.com -- Steven Milloy, Publisher

Steve Milloy posted this on his website. It is safe to say that there are "environmental" groups that are hell-bent on removing fossil fuels from industrialized countries uses. Their aim is to supplant the usage of fossil fuels with bio-fuels. This occurs at the expense of necessary food and increased pricing for many in developing nations. The United States is hard hit with the increased food prices.