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1.11.2011

For the first time, the world is facing a real food shortage

Source: Times & Transcript, published Tuesday January 11th, 2011
By: Gwynn Dyer

If all the food in the world were shared out evenly, there would be enough to go around. That has been true for centuries now: if food was scarce, the problem was that it wasn't in the right place, but there was no global shortage. However, that will not be true much longer.

The food riots began in Algeria more than a week ago, and they are going to spread. During the last global food shortage, in 2008, there was serious rioting in Mexico, Indonesia, and Egypt. We may expect to see that again this time, only bigger and more widespread.

Most people in these countries live in a cash economy, and a large proportion live in cities. They buy their food, they don't grow it. That makes them very vulnerable, because they have to eat almost as much as people in rich countries do, but their incomes are much lower.

The poor, urban multitudes in these countries (including China and India) spend up to half of their entire income on food, compared to only about 10 per cent in the rich countries. When food prices soar, these people quickly find that they simply lack the money to go on feeding themselves and their children properly - and food prices now are at an all-time high.

"We are entering a danger territory," said Abdolreza Abbassian, chief economist at the Food and Agriculture Organization, on Jan. 5. The price of a basket of cereals, oils, dairy, meat and sugar that reflects global consumption patterns has risen steadily for six months, and has just broken through the previous record, set during the last food panic in June, 2008.

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