It's not just the U.S. - Food inflation will affect entire globe in 2013

Tuesday, August 28, 2012 by: J. D. Heyes
Tags: food inflation, groceries, prices

eTrust Pro Certified

Delicious Pin It
(NaturalNews) Grocery prices in the United States have risen steadily for months now, but because of the drought here at home and other global market forces, food costs are set to skyrocket around the world as well, say experts.

In addition to parched farmland throughout much of the U.S. and near the Black Sea, weak monsoons in India and ongoing hunger across wide swaths of Africa will all combine to drive food prices higher next year.

"We have had quite a few climate events this year that will lead to very poor harvests, notably in the United States with corn or in Russia with soja," Philippe Pinta of the French Farmer's Federation warned recently.

If conditions persist beyond this year, analysts note, it could be a repeat of 2007-2008, when food prices soared more than six percent to a 25-year high, according to industry analysts and reports at the time.

A year later, the UN said, prices had peaked to 30-year highs and in December 2010 the food price index rose above its 2008 peak before dropping to an 11-month low in October 2011.

Memphis, Tennessee-based Informa said a study based on 20 years' worth of food price data blamed soaring non-farm costs such as "record oil prices and soaring consumer demand from the world economy, notably the emerging middle class in Asia," were largely at fault, Reuters reported.

We've seen this before

Today, a similar combination of things, combined with a weather element, is once more affecting world food prices.

While oil has retreated in recent days, prices remain high despite lower demand, especially from the U.S., the world's largest oil consumer. That has translated into higher costs for fuel that farmers must pay to harvest and transport their crops.

A drought continues to grip much of the Midwestern United States, where corn production has fallen to its lowest level in six years, according to the Department of Agriculture, where diminished corn and soybean production will likely contribute to higher costs.

In India, meanwhile, monsoon rains fell more than 15 percent below normal by mid-August, meaning Asian rice prices are likely to increase by as much as 10 percent in the coming months.

Drought conditions have also hit parts of Africa's Sahel region, causing food shortages. In fact, the relief agency World Vision Australia said 18 million people need food assistance in Niger, Mali, Chad, Mauritania and Senegal.

If conditions don't change, it "could affect the crop prospects and may have an impact on prices of essential commodities," Kuruppasserry Varkey Thomas, India's agriculture minister, told the Bangkok Times.

Already, the prices for some items are being affected by inflation.

"Cereal prices have shot up, with an increase in (corn) prices of almost 40 percent since June 1," strategists at the CM-CIC brokerage noted. In the U.S., the price of hamburger and other meats, along with some dairy and corn-based products, have shot up.

Some cause for optimism; some wiggle room

Not everyone is being pessimistic about food price increases. Analysts with the UN Food and Agriculture Organization (FAO) say they are expecting rice outputs to surpass the "excellent results" seen in last year's crops, even though the agency cut its estimates for production of un-milled rice to about 725 million tons from 732 million.

Still, it's clear harvests this year around the world are going to be negatively impacted, and that has led some to call for measures aimed at boosting food supplies in any way possible.

One such way would be for the U.S. to suspend its corn-ethanol mandate, says FAO director general Jose Graziano da Silva of Brazil.

"An immediate, temporary suspension" of the mandate requiring a substantial portion of corn crops to be used in biofuels "would give some respite to the market and allow more of the (corn) crop to be channeled towards food and feed uses," he wrote in the Financial Times.

The jury is still out on that suggestion. A Purdue University study published earlier this month found that suspending the mandate could have some positive effects on prices by boosting availability. The suggestion seems like a no-brainer, but remember, we are talking about Washington, D.C.







Get breaking news alerts on GMOs, fluoride, superfoods, natural cures and more...
Join over four million monthly readers. Email privacy 100% protected. Unsubscribe at any time.

Have comments on this article? Post them here:

comments powered by Disqus

Take Action: Support NaturalNews.com

Email this article to a friend

Permalink to this article:

Reprinting this article: Non-commercial use OK, cite NaturalNews.com with clickable link.

Embed article link: (copy HTML code below):
Most Popular
Today | Week | Month | Year

See all Top Headlines...


Now Available at ShopNaturalNews.com

O3 Essentials OraJuvenate™
A powerful, cleansing dental cream for maximum oral/dental health.
New Cancer Solutions
Over 3 hours of content covering today’s best cancer tests, how to kill cancer cells and the best diets and exercise routines.
Freeze-Dried 100% Organic Whole Corn
Our freeze-drying method preserves taste, texture and nutrients better than any other food preservation method ever invented.
Fenix TK35 Flashlight
Tough, waterproof, extremely bright and it’s touted to throw an 800+ lumen beam more than 1,000 feet into the night.
Inca Treasure Smoothie Pack
This pack of our four most popular superfoods from South America is the perfect combo pack for smoothie lovers.
Pink Himalayan Salt
This salt delivers significant levels of magnesium, zinc and selenium, with trace levels of dozens of other elements.
Pinhole Glasses - Aviator Style
Pinhole glasses are becoming famous for helping people improve their vision without the risks of laser surgery.
Oxy-Rich Facial Serum
O3 Essentials Jojoba Oxy-Rich Facial Serum is cellular nourishment for your skin. Helps smooth fine lines while enhancing tissue elasticity.
Freeze-Dried 100% Blackberry Halves
Our freeze-dried blackberry halves are grown in Serbia under strict organic standards.

Also on NaturalNews:

Health Ranger Videos
Activist music
CounterThink Cartoons
Food documentaries
FREE Special Reports
Colloidal Silver

Advertise with NaturalNews...

Support NaturalNews Sponsors:

Advertise with NaturalNews...

Most Popular Stories

Flu shot kills 19-year-old, but vaccine industry still has total immunity against lawsuits
Here's a nutty fact: Eating more tree nuts lowers the risk of all-cause death by up to 20 percent
Six important facts you're not being told about lost Malaysia Airlines Flight 370
Malaysia Airlines Flight 370 now clearly a government cover-up: All evidence contradicts official story
10 other companies that use the same Subway yoga mat chemical in their buns
BLM fracking racket exposed! Armed siege and cattle theft from Bundy ranch really about fracking leases
High-dose vitamin C injections shown to annihilate cancer
U.S. treating meat with ammonia, bleach and antibiotics to kill the '24-hour sickness'
USDA to allow U.S. to be overrun with contaminated chicken from China
Vaccine fraud exposed: Measles and mumps making a huge comeback because vaccines are designed to fail, say Merck virologists
Battle for humanity nearly lost: global food supply deliberately engineered to end life, not nourish it
Diet soda, aspartame linked to premature deaths in women

25 Amazing Facts About Food

This FREE downloadable report unveils a collection of astonishing and little-known facts about the food we eat very day. Click here to read it now...


Resveratrol and its Effects on Human Health and Longevity - Myth or Miracle.

Unlock the secrets of cellular health with the "miracle" nutrient Resveratrol Click here to read it now...


Nutrition Can Save America

FREE online report shows how we can save America through a nutrition health care revolution. "Eating healthy is patriotic!" Click here to read it now...

The Healing Power of Sunlight and Vitamin D

In this exclusive interview, Dr. Michael Holick reveals fascinating facts on how vitamin D is created and used in the human body to ward off chronic diseases like cancer, osteoporosis, mental disorders and more. Click here to read it now...

Vaccines: Get the Full Story

The International Medical Council on Vaccination has released, exclusively through NaturalNews.com, a groundbreaking document containing the signatures of physicians, brain surgeons and professors, all of which have signed on to a document stating that vaccines pose a significant risk of harm to the health of children. Click here to read it now...

Health Ranger Storable Organics

GMO-free, chemical-free foods and superfoods for long-term storage and preparedness. See selection at www.StorableOrganics.com

Recommended Resources On:

Natural News trends
Health Ranger news
Natural News GMOs
Mike Adams tracker
Natural News photos
Natural News Global
Natural News in focus
Natural News connect
Natural News shocking stories
Natural News radar
Health freedom
Dr. Paul Offit

This site is part of the Natural News Network © 2014 All Rights Reserved. Privacy | Terms All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing International, LTD. is not responsible for content written by contributing authors. The information on this site is provided for educational and entertainment purposes only. It is not intended as a substitute for professional advice of any kind. Truth Publishing assumes no responsibility for the use or misuse of this material. Your use of this website indicates your agreement to these terms and those published here. All trademarks, registered trademarks and servicemarks mentioned on this site are the property of their respective owners.

eTrust Pro Certified Android app on Google Play

Sign up for the FREE Natural News Email Newsletter

Receive breaking news on GMOs, vaccines, fluoride, radiation protection, natural cures, food safety alerts and interviews with the world's top experts on natural health and more.

Join over 7 million monthly readers of NaturalNews.com, the internet's No. 1 natural health news site. (Source: Alexa.com)

Your email address *

Please enter the code you see above*

No Thanks

Already have it and love it!

Natural News supports and helps fund these organizations:

* Required. Once you click submit, we will send you an email asking you to confirm your free registration. Your privacy is assured and your information is kept confidential. You may unsubscribe at anytime.