The Oakland Institute has issued a short and useful policy brief on the social and political impact of rising food prices. I’m on the road this week and regularly reading USA Today delivered to hotel rooms. Its story yesterday about bread shortages in Egypt is surely an indication of the need for deep policy analysis followed up by immediate policy action.
So what’s going on with food prices? In the last year, milk is up 17%, dried beans 17%, cheese 15%, rice and pasta 13%, bread 12%–and eggs 25%. The last time I bought a quart of milk at my local anything-goes corner store, it was $2.40. Why? For eggs, it’s clear: growing corn for ethanol drives up corn prices and chicken feed. For eggs and everything else we have the perfect storm: increased demand (from China), decreased supply (ethanol), and higher fuel prices. I’m sure there are other reasons too, but these will do for a start. This is why food systems matter.
Today’s Observer (London) lays out the causes and consequences of what’s happening to global food prices. Not pretty. The bleak forecast: price increases of 10% to 50% leading to “a war between the 850 million chronically hungry of the world and the 800 million motorists – all fighting for the same food crop.”
Here’s something worth reading: The Economist‘s take on food prices. This business magazine minces no words. The rise in prices is the result of “America’s reckless ethanol subsidies.” Higher food prices, it says, can do good or harm depending on how governments deal with them. The issues are complicated. This is one way to look at them. Are there others?
The topic: “How would Julia Child vote on the 2012 farm bill? 4:00 p.m., Fales Special Collections at Bobst Library. Open to public. Details are here.
