27 May 2008

Food Prices, Petrol Prices

100 lorry convoys are protesting today around Britain, with hauliers talking about "the hardest time we've ever had," crisis and catastrophe, that "they need help."

With a drastically-higher cost of petrol, we can drive less.

In contrast, tens of millions of the world's poor could die of hunger as a result of soaring food prices.

The Guardian is starting a five-day series of articles -- on the impact of global food price rises -- by looking at Egypt.

Adel Beshai, an Egyptian economist: "It has to do with the food-fuel equation. The real issue now is that the price of oil hit the $100 mark and the price of oil will continue to rise. There is now competition between fuel consumption in the developed countries, where food is being turned into cheaper fuel, and food consumption in poorer ones where they want to eat what is being turned into fuel."
A higher price for oil means a higher price for fertiliser, higher prices for tractors and farm machinery, and higher prices for pesticides (which rely on oil). The US diverting 30% of its corn crop -- to fill SUV tanks with biofuel rather than feed the world-- isn't helping either. Barack Obama represents the corn belt, make of that what you will.

The other factor is more of the world eating meat, eggs and dairy products. Over 30% of the world's grain goes to feeding animals rather than people directly. If we had a more global vegan diet, we wouldn't be having this kind of strain.

Yes, we have to pay for higher petrol, and we have to pay 50p more per portion of rice at certain curry houses. But what we're experiencing is nothing compared to the impact of food price rises in the developing world.

1 comment:

LDT said...
This comment has been removed by the author.