Rice at $1000 per ton

Well, farmers choosing to grow bio-fuels is more a financial decision than one brought about by pressure from environmental groups. The rise in the cost of oil combined with it's increasing scarcity for one. There are also a lot of other financial incentives to grow bio-fuels right now.
 
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CNN is really trying to push the whole "US FOOD SHORTAGE" headline. It is a problem is poor countries but we do not face a shortage is the US. It's simply more expensive. This is a problem but CNN is making it out to be an epic catastrophe of dustbowl/great depression-era proportions. At least that's what it seemed like on their shows this afternoon.
 
The Central Scrutinizer said:
I seem to recall having heard on the radio that the crop failed in Australia, but I could be wrong.
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You're quite right - see my link a few posts back. 98% decline from a significant production volume several years ago. Drought is being blamed.

This may be of little concern to us in the US since rice is not really a staple here. Elsewhere this is a huge concern.
 
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Policenaut said:
CNN is really trying to push the whole "US FOOD SHORTAGE" headline. It is a problem is poor countries but we do not face a shortage is the US. It's simply more expensive.
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But it is important when very poor people and charities who help very poor people are finding it hard to afford basic foodstuffs.
 
Meh, the anwser to your problems is dining out or grabbing instant noodles (actually the latter). its not healthy, but its better then the gruel in the middle ages. Either way, rice and cereal definately felt more expensive. I mean I still subsist on eating out and a packet of instant ramen. But for the family in poverty, it is harder times ahead.
 
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madurobob said:
Interesting: http://www.iht.com/articles/2008/04/17/business/17warm.php

Both china and India have stopped exports in order to ensure adequate rice at home.



Apparently Australia's rice production has dropped 98% over a 6 year period:
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Climate change has caused some big problems with all farming, not just rice.

ETA: check out the dog in the pic at the top of the story - I wonder if he rides up there?
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He certainly would. Looks like a Kelpie or a Blue Heeler, bit hard to tell.

http://en.wikipedia.org/wiki/Australian_Kelpie

Though 20 million sounds like a lot, it's not that significant in terms of the total rice eating population of the world. I'd be looking for other reasons as well.
 
BPSCG said:
Okay, I get the feeling I'm missing a link here. Thread title is "Rice at $1000 per ton."

That works out to fifty cents a pound.

Is that supposed to be horribly expensive?
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For people in the West, no. Indeed, it's them easily paying such rates that is the problem, and why rice is fleeing the poor countries to be shipped here.

But for someone who earns $1,300 per year, or less, yes, that is more than they can easily pay, and as such their own farmers, who are in business, decide to ship the rice where they can get a better price.


It's interesting that these countries banning exports will just increase the length of the problem since it will induce fewer domestic farmers to produce rice than they otherwise would. So sayeth some world food economist on NPR, so I know it's true.
 
My son's wife, who lives in the Philippines until her visa is approved, said they're having a very hard time even getting any rice, and what they do get is too expensive. He tells me it's all being shipped to other countries where they'll pay more for it.

When it's such a staple of the diet, and especially when you're feeding a large extended family, it's definitely a hardship.
 
i work in a grocery store in philadelphia, and interestingly enough today i noticed this sign (which is hopefully legible):
 

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Potatoes are still about 20 cents a pound, I say let the 3rd world eat potatoes!
 
Reason for the rise? Movement of investors from the stock market moving into commodities to protect their money. That's why there was such a sudden increase, it's been going on for a while but it didn't hit until the stock market problems we have seen.

The inflation in food is driven by food speculators, along with the price of oil, of which a majority of the value is speculation.
 
Part of the problem is that too many of the countries which are high consumers of rice have become too dependent on cheap, and often subsidized, foreign imports; instead of developing their own agricultural industry. Countries like Japan haven't been hit nearly as hard despite their high consumption rates, because they have their own strong growing industry; and are net exporters (Japan in particular has strongly resisted importing rice, prefering to depend on native crops.)

Unfortunately, internal strife and bad government has prevented such an industry from developing to the point where it could compete with imported crops.
 
luchog said:
Part of the problem is that too many of the countries which are high consumers of rice have become too dependent on cheap, and often subsidized, foreign imports; instead of developing their own agricultural industry. Countries like Japan haven't been hit nearly as hard despite their high consumption rates, because they have their own strong growing industry; and are net exporters (Japan in particular has strongly resisted importing rice, prefering to depend on native crops.)

Unfortunately, internal strife and bad government has prevented such an industry from developing to the point where it could compete with imported crops.
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For Japan (and Korea) and I am sure others, growing their own rice is a national security issue. They heavily subsidize their own rice farmers despite very inefficient farming methods. Rice in Japan and Korea is very expensive as a result.

glenn
 
Hindmost said:
For Japan (and Korea) and I am sure others, growing their own rice is a national security issue. They heavily subsidize their own rice farmers despite very inefficient farming methods.
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Pretty much the same reason we have the "Farm Bill" here in the US.
 
hamelekim said:
Reason for the rise? Movement of investors from the stock market moving into commodities to protect their money. That's why there was such a sudden increase, it's been going on for a while but it didn't hit until the stock market problems we have seen.

The inflation in food is driven by food speculators, along with the price of oil, of which a majority of the value is speculation.
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Speculation cannot do much to "corner the market" when there are large surpluses. And even where there are NO large surpluses, the Hunt brothers found out you can only keep those balls in the air for a while.
 
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