Political Turmoil Pushes Global Food Prices To An All Time High
Political Turmoil Pushes Global Food Prices To An All Time High – confirms newspaper reports. The political turmoil in Middle East and increase in crude oil prices have contributed to recent upsurge in food prices.
Food experts say that overexploitation of natural sources will contribute to increment in food prices in global level. Lester Brown – who serves as the director of the Earth Policy Institute is of the opinion that metamorphosizing crops into ethanol and over pumping aquifers will generate immense pressure on global food prices. The political turmoilin Middle East will escalate the situation to alarmingly dangerous levels suggest experts.
However, UN’s Food and Agriculture Organization have recorded food gains for 8 months and these gains have surpassed all –time food records still the food prices tend to increase. The political unrest in Middle East and North Africa has distracted the world attention from this achievement. Lester Brown is of opinion that the current food crisis is “chronic and trend driven”.
The food experts say that supply-side factors and increasing food demand contributed to global food prices in 2007. The crisis was largely avoided due to great recessions which curtailed the demand of food and helped food suppliers to fulfill the demands due to good weather. The global audience is growing and food demands are also escalating. The largest portion of world population resides in growing economies. It is believed that about 3 billion people living in developing countries have created huge demand for animal protein. But food experts are of the opinion that diversion of crops to generate ethanol is causing more trouble than expected and contributing to wanton leaps in food prices in global level.
Conversion of food crops into ethanol is culmination of 70’s dream where governments devised better idea to convert the barren farm lands to curtail the dependence on oil. However the idea clicked and also curbed the oil problem upto some extent but it slowly jeopardized the farms across the world. The governments are now finding it difficult to put stops on ethanol production and go back to feeding their people. Experts are of the opinion that the answer to increasing food prices in global level lies within the increasing demand of ethanol. The ethanol production has more than tripled since 2004. However, many of the global economies were dedicatedly involved in ethanol production which has now doubled to 28.7% since last four years.
The rising price of oil makes ethanol production even more attractive for farmers. And with profits come interest groups; Brown says that “the ethanol problem is political, in the U.S., with 10 producing states and 2 senators each, they have a big [legislative] block committed to ethanol production,” he says.
The increasing oil prices are also responsible for pushing global prices to an all time high because more and more farmers are lured to try ethanol production. The profit doubles and income also floods. The ethanol production problem is gaining more momentum in US because senators are directing their energies towards it. Other than that global warming and climate change are also contributing to global food prices.
Experts believe that that nuclear disaster in Japan is going to aggravate the situation further. Let’s wait and watch in the coming days what all factors will contribute to the food prices in global level.
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