Global Food Crisis
Eric Mai
Whether you are shopping for groceries or cooking meals, why should we be concerned with supply disruptions at water ports, hurricane forecasts from NOAA (National Oceanic & Atmospheric Administration), effects of El Nino/La Nina, record droughts throughout much of the globe (domestically throughout U.S., Africa, South America, Russia, Australia)? Moreover, how could energy costs be associated with terrorism?
All of the above influence the cost of energy both domestically in the U.S. and throughout the world. The cost of energy has many fundamental and technical influences. Fundamentally influenced by supply and demand forces. Technically from the massive amounts of investment dollars in a flight to commodities re-allocation of investment portfolio’s and an overall increase in investors appetite for risk. Many pension funds now carry a percentage of commodities in their portfolio which was unimaginable years ago.
Global energy prices on exchanges are also largely driven my emotion, rumor, fear and greed. As energy costs are distributed through out the supply chain of goods produced, goods manufactured and services rendered, those costs continue to compound from the family farmer using diesel fuel in farm equipment, transportation of commodities to mills and refiners, conversion of raw materials to end use products, to transportation of those goods to retail or distribution centers. Eventually we’re going to see those costs passed along to consumers in general food prices at grocery stores as high energy costs will not be absorbed by the supply chain.
One published estimate speculates that food costs could increase 30% if existing conditions continue. Highly unlikely as something has to give, never-the-less all together possible. We could expect to not only see $4.00 gas at the pump this summer, but if the predicted hurricane forecast comes to fruition (NOAA predicted another active hurricane season with 17 named storms and several significant land falls, albeit we skated by last 2 summers without anything), but prices will rally significantly with any disruption to offshore gulf production and transportation. Commercial freight and distribution companies margins are being squeezed more than ever putting added pressure on business sustainability (i.e., potential for downsizing, bankruptcy, etc.).
Don’t be surprised if the first hurricane brings $5.00 gasoline at the pump this summer despite the forecasted decrease in traffic for the summer driving season. Our transportation system is being heavily burdened with diesel costs already over $4.40/gallon in which our economy is very dependent on truck transportation of our consumer products (did you know semi trucks average 5-6 miles per gallon?). This has not only become a U.S. threat on the brink of becoming a full-out crisis, but potential to develop into of a global crisis as food costs currently account for over 50% - 60% of household income in many countries.
For these under developed nations and impoverished people, nothing is more compelling than fear and desperation when you and your family are faced with starvation…..which unfortunately creates an excellent recruiting opportunity for terrorism. As food costs increase as a result of higher production costs coupled with the push to convert food sources into energy sources (i.e., significant amounts of corn are being consumed by initiative to create ethanol displacing livestock feed and raw material for consumer foods and products, and sugar cane in Brazil is being converted into ethanol displacing raw material food inputs).
It begs the question, are we adequately confronting the war on terror with the global economy on the fringe of a food shortage disaster? Does hunger foster terrorism? Can a difference in your behaviors, your consumption patterns make a difference to the world thereby preventing a family from starvation and falling victim to support of terrorist organizations?
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At first I read this and thought, “Is this too heavy for our audience?” But upon reading it a second time I realized that this has everything to do with our site.
As the cost of fuels rise, the cost of food will rise and putting a decent meal on the table without breaking the bank is exactly what we are trying to do here. My question to all is- What consumption patterns would be easy to change?
The first thing I think we could change is our consumption of JUNK FOOD! Imagine how much fuel we would save if every American cut out one soda a day! If we all planted five of our most used and favorite veggies in a small garden off our patios! For our very own health and the health and safety of our economy! Let’s get back to the basics! Home grown veggies, and local grass fed cattle, less processed foods! Healthy eating is nothing new to any of us, but it is a matter of slowing down in our every day lives to understand the importance of it! Or children today have no idea where carrots come from, for all they know you pluck them off trees and they come looking like an oversized Good N’ Plenty!
This is partially why we are growing our very own garden this year! When I go to the grocery store to buy the fixins’ for a good salad I spend nearly $20! When if I had my own garden I could plant the entire season worth every one of my favorite veggies for under $20! And have enough seeds left over for the next two seasons! I now have my own naturally organic veggies with no chemicals or pestisides on them!
You also create a learning enviroment for your children. Teaching them how life really began. Depending on ourselves for the next meal. Gardening is also a stress releaver for most and we all know we could use a little of that!
I challenge you all to “Get Back to the Basics!” Grow your own garden and purchase meat from local grass fed cattle farmers. Slow down!!! Enjoy life a little while longer and appreciate all that we have been given- Give Back! Share veggies with your neighbor, walk when you can to do an errand or take your kids to school. Create a new family atmoshere while doing it “together”! We have grandparents that are 82 and 90 years old! Make them proud, get back to some of their roots!
http://news.yahoo.com/s/livescience/20080505/sc_livescience/howtofightglobalwarmingatdinner
I read this article today on Yahoo and thought of your article right away. It gives great suggestions in how to fight global warming through your grocery purchases.