Monday, March 07, 2011
The price of food is continuing to rise worldwide, which could mean unrest for some countries if the trend continues.
According to the United Nation’s Food and Agriculture Organization (FAO), the Food Price Index has gone up eight straight months. February’s average of 236 points topped that of January by 2.2%, and that’s after the first month of 2011 set the highest level recorded since FAO began the index in 1990.
All commodity groups, except sugar, experienced price gains last month, with the highest coming in dairy products and cereals. However, the sugar index is double what it was just nine months ago.
Experts worry that this year could see a return of food riots, similar to those that occurred in 2008 when prices spiked.
A combination of natural and manmade problems has been blamed for the eight-month increase in prices. Agricultural production in countries like Pakistan (floods), Australia and Canada (drought) and Russia (wildfires) has been reduced, while market speculators have made things worse by manipulating commodity prices.
-Noel Brinkerhoff
FAO Food Price Index (UN Food and Agriculture Organization)
Food Prices Hit Record High, Spurring Worries About Global Unrest (by Nathanial Gronewold, Greenwire)
Are Food Shortages Around the World being Caused by Investors’ Speculation? (by Noel Brinkerhoff, AllGov)
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