Rice at $1000 per ton

[BenBurch]

Knowing that a majority of the planet is poor, and that a majority of those poor derive the majority of their sustenance from rice, this cannot be a good thing.

I have thought that famine was certain in this century since I real "Limits To Growth" in the early 70s, but this crisis is much sooner that it ought to be.

Is it totally artificial?

Or is there a real shortage behind this?

 

[balrog666]

Knowing that a majority of the planet is poor, and that a majority of those poor derive the majority of their sustenance from rice, this cannot be a good thing.

I have thought that famine was certain in this century since I real "Limits To Growth" in the early 70s, but this crisis is much sooner that it ought to be.

Is it totally artificial?

Or is there a real shortage behind this?

Historically speaking, famines are caused by politics not agriculture.

 

[Travis]

Hmmm... I'd say Condoleezza weighs about 115-120 pounds so, apparently, I could own her for $60! That's a steal for a Neo-Con that isn't an out of shape white male over the age 55.

 

[Complexity]

I didn't get that until I'd closed the thread.

In my own defense, I haven't had coffee yet.

 

[Rob Lister]

Knowing that a majority of the planet is poor, and that a majority of those poor derive the majority of their sustenance from rice, this cannot be a good thing.

I have thought that famine was certain in this century since I real "Limits To Growth" in the early 70s, but this crisis is much sooner that it ought to be.

Is it totally artificial?

Or is there a real shortage behind this?

I find lots of articles on the rising price of rice (especially Thai rice...which is a premium bench-marker) but nothing on the actual cause.

Was there a major crop failure? Maybe, but I can't find reference to it.

Was there some [sudden] move by major Asian nations away from rice? Unlikely, but I can't find reference to that either.

Could it be that the demand for rice has risen because of the higher price of wheat (caused in turn by actual and speculative ethanol demand)? Probably the most likely scenario but who could prove it?

Failing those three scenarios, I'll assume it is artificial.

 

[Bikewer]

As I understand it, all costs associated with the production and transportation of the product have gone up sharply, rather than the rice itself. Fuel, fertilizers, etc.

Rice is apparently unaffected by the biofuel trend, as opposed to corn and soybeans.

 

[madurobob]

has the supply realy changed much, or is it possibly a bit misleading to use the dollar as a valuation tool?

I admittedly have done zero research on this, but if the issue is the highly impoverished in 3rd world countries having enough rice, I'm not sure its right to use the fluctuating value of the dollar as a means to identify problems in getting rice to the hungry. Unelss, like oil, rice is priced universally in dollars.

 

[BPSCG]

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?

 

[madurobob]

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?

I don't think its a question of that being horribly expensive or not in a vacuum. The correct metric is YtY growth in real price. If I am paying $.05/pound this year and can barely afford it, then $.50/pound means I'll starve if there are not other things to eat. Value judgments about a $.50/pound price don't come into play.

But I also think you need to look at it in terms of local currency. People in India don't give a damn what rice costs in dollars as long as the price they pay in Rupees is relatively stable and the supply is predictable.

 

[drkitten]

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?

For a wholesale price, in the production areas, that seems horribly expensive to me.

 

[madurobob]

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.

The collapse of Australia's rice production is one of several factors contributing to a doubling of rice prices in the last three months — increases that have led the world's largest exporters to restrict exports severely

Apparently Australia's rice production has dropped 98% over a 6 year period:

The Deniliquin mill, the largest rice mill in the Southern Hemisphere, once processed enough grain to satisfy the daily needs of 20 million people. But six long years of drought have taken a toll, reducing Australia's rice crop by 98 percent and leading to the mothballing of the mill last December.

ETA: check out the dog in the pic at the top of the story - I wonder if he rides up there?

 

[WildCat]

I bought a 20 lb bag about a month ago, though I didn't know there was a shortage. Haven't even opened it yet, since I discovered a 5 lb bag in the cupboard later. I don't remember what I paid, except that it was a much better deal than the 10 lb bag.

 

[CFLarsen]

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?

Not to you, perhaps. Because you are born with a silver spoon up your ass.

But when you make $300 a year, it is.

Heck, I've been paid more than $300 an hour.

 

[BenBurch]

``Scrooge and Marley's, I believe,'' said one of the gentlemen, referring to his list. ``Have I the pleasure of addressing Mr Scrooge, or Mr Marley?''

``Mr Marley has been dead these seven years,'' Scrooge replied. ``He died seven years ago, this very night.''

``We have no doubt his liberality is well represented by his surviving partner,'' said the gentleman, presenting his credentials.

It certainly was; for they had been two kindred spirits. At the ominous word ``liberality'', Scrooge frowned, and shook his head, and handed the credentials back.

``At this festive season of the year, Mr Scrooge,'' said the gentleman, taking up a pen, ``it is more than usually desirable that we should make some slight provision for the Poor and destitute, who suffer greatly at the present time. Many thousands are in want of common necessaries; hundreds of thousands are in want of common comforts, sir.''

``Are there no prisons?'' asked Scrooge.

``Plenty of prisons,'' said the gentleman, laying down the pen again.

``And the Union workhouses?'' demanded Scrooge. ``Are they still in operation?''

``They are. Still,'' returned the gentleman, `` I wish I could say they were not.''

``The Treadmill and the Poor Law are in full vigour, then?'' said Scrooge.

``Both very busy, sir.''

``Oh! I was afraid, from what you said at first, that something had occurred to stop them in their useful course,'' said Scrooge. ``I'm very glad to hear it.''

``Under the impression that they scarcely furnish Christian cheer of mind or body to the multitude,'' returned the gentleman, ``a few of us are endeavouring to raise a fund to buy the Poor some meat and drink, and means of warmth. We choose this time, because it is a time, of all others, when Want is keenly felt, and Abundance rejoices. What shall I put you down for?''

``Nothing!'' Scrooge replied.

``You wish to be anonymous?''

``I wish to be left alone,'' said Scrooge. ``Since you ask me what I wish, gentlemen, that is my answer. I don't make merry myself at Christmas and I can't afford to make idle people merry. I help to support the establishments I have mentioned: they cost enough: and those who are badly off must go there.''

``Many can't go there; and many would rather die.''

``If they would rather die,'' said Scrooge, ``they had better do it, and decrease the surplus population. Besides -- excuse me -- I don't know that.''

``But you might know it,'' observed the gentleman.

``It's not my business,'' Scrooge returned. ``It's enough for a man to understand his own business, and not to interfere with other people's. Mine occupies me constantly. Good afternoon, gentlemen!''

 

[WildCat]

Had to get some groceries a few hours ago... price for a 20 lb bag of Riceland long grain rice is $8.99.

 

[Wildy]

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

I thought China needed to import rice to meet demand?

Apparently Australia's rice production has dropped 98% over a 6 year period:

I would also guess that some of the rice producers might have sold their water licenses back to the government.

Even though when it comes to water matters for people who rely on the Murray Darling basin the Easterners are just greedy.

Let it be known here that if the Coorong dies it ain't SA's fault. We're trying to get our water from elsewhere.

 

[shadow revolution]

And the conspiracy nuts blame bush again on food shortages.Apparently while browsing Youtube videos. They blamed the NWO.

 

[mrbaracuda]

The basmati rice (1kg) I buy has gone up!
If I'm not mistaken it was 1.20€ before and now it's 1.80€

This is an outrage! Preposterous!



But still. I like my rice cheap.

 

[Travis]

Why are not more people concerned with this?

Hmmmm......

There are people who still subsist on rice!?! Next thing you'll tell me there are still people who are forced to drink dirty water. How preposterous, I've never seen anything like that in a suburban mall which is, I imagine, how the whole world is.

 

[uk_dave]

The price of rice has risen by as much as 70% during the past year, with increases accelerating in recent weeks.
Several rice-producing countries have put curbs on exports in recent weeks.
'Research needed'
"Longer term demand-supply imbalance is clearly indicated by depletion of stock that has been going on for several years," said Sushil Pandey, agricultural economist at the IRRI.

The institute said several factors were behind the rise in rice prices.
Land for producing rice and irrigation water is being lost to industrialisation and urbanisation.
The growing appetite among Asia's burgeoning urban middle class, especially in India and China, for meat and dairy products is also leading to less land for rice production.
Factors such as the flooding in Indonesia and Bangladesh and recent cold weather in Vietnam and China have also hurt production, it said.

http://news.bbc.co.uk/1/hi/business/7341978.stm

It is rather worrying. There is also a shortfall in wheat, due in part to the switch to growing crops for biofuels.

I recall the UN warned about this about a year ago, but it's surprising how quickly the effects have kicked in.