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The Spreading Global Food Crisis Thread pt 2 (merged)

What's on your mind?
General interest discussions, not necessarily related to depletion.

Re: "Forget oil, the new global crisis is food"

Postby joewp » Sat 05 Jan 2008, 03:01:13

$this->bbcode_second_pass_quote('LoneSnark', 'Y')es, it is much more plausible to proclaim that just because we do things one way today it is the only way things can ever be done.


Yep, you're absolutely right LoneSnark, there's always economic substitutes. After all, what are you going to do with all the "demand destruction" in the food market?

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Re: "Forget oil, the new global crisis is food"

Postby LoneSnark » Sat 05 Jan 2008, 11:29:10

Once again I see I must give my "infinity" speech. While there may not be substitutes available forever, we do not care about forever. If we limit our time-scope to, say, the next century then insufficient time has passed for anything revolutionary to have occured and we know what substitutes will be available because insufficient time has passed for us to use them up.

So, what are we going to use as energy sources? Why, oil, gas, coal, hydro, and nuclear. We are not going to be 'out' of oil suddenly, hubberts theory was that it would fall off at the rate it grew, which was rather slowely over a century.

So, over the next hundred years ever less oil will be available, but so what we have substitutes: unconventional oil, coal, nuclear, and conservation.
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Re: "Forget oil, the new global crisis is food"

Postby Twilight » Sat 05 Jan 2008, 13:43:13

$this->bbcode_second_pass_quote('dorlomin', 'I')f Japan intends a big increase is stockpiles then it will likely be yet another factor increasing prices next year bringing famine closer for many of the worlds poorest. But I guess it is an acceptable means of using there dollars for something more worthwhile than US treasury bonds.

You got it. The wealthy internet-using northern nations of the world won't have to worry about food for a while yet. We'll use our superior buying power to stock up and let the south worry about it.
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Re: "Forget oil, the new global crisis is food"

Postby steam_cannon » Sat 05 Jan 2008, 14:10:22

A few charts to chew on...

$this->bbcode_second_pass_quote('steam_cannon', '
')
Grain supplies continue to get tighter...
$this->bbcode_second_pass_quote('steam_cannon', 'T')hese are certainly trends to keep an eye on. It's getting interesting out there.

Trend I've been watching
$this->bbcode_second_pass_quote('', '[')b]Grain Harvest Sets Record, But Supplies Still Tight
http://www.worldwatch.org/node/5539
http://www.peakoil.com/post558005.html

"Near-perfect weather in major growing areas as well as an estimated 5 percent jump in world fertilizer use helped farmers increase yields."

"...voracious global demand will consume all of this increase and prevent governments from replenishing cereal stocks that are at their lowest level in 30 years."

Global cereal stocks were expected to stand at 318 million tons by the close of the 2007 season, equivalent to about 14 percent of annual consumption.
That's about a 50 day supply, which suggests supplies of stored grain are still falling.

$this->bbcode_second_pass_quote('energybulletin', '
')World Grain Stocks Fall to 57 Days of Consumption: Grain Prices Starting to Rise (2006)

ImageImage

This year’s world grain harvest is projected to fall short of consumption by 61 million tons, marking the sixth time in the last seven years that production has failed to satisfy demand. As a result of these shortfalls, world carryover stocks at the end of this crop year are projected to drop to 57 days of consumption, the shortest buffer since the 56-day-low in 1972 that triggered a doubling of grain prices.

http://www.energybulletin.net/17261.html
So even with massive increases in fertilizer use, excellent weather and a massive push to increase grain production, it looks like we are still falling further behind.

Good news? I guess the good news is we aren't seeing famines yet and world grain prices haven't shot up too sharply, yet... But the trend is continuing.

------------------------------------------------------------------------------

Related...

* Fertilizer supply problems (supply problem with fertilizers in spring 2008)
$this->bbcode_second_pass_quote('', 'W')orld demand is outstripping supply and farmers are being advised not only to make sure they have ordered what they need, but to take delivery and make sure they have it.

"This coming season, the most likely situation is a shortage,” said Yara’s England and Wales business manager Steven Chisholm.

World demand for grain production for both feed and biofuel was currently outstripping supply and that was driving the demand for fertilisers.

"All I would say is order it and get it delivered – ownership will be nine tenths of the law this spring.

* Mexico's tortilla riots
"75,000 people protesting the rising price of tortillas."
http://www.google.com/search?hl=en&q=fo ... gle+Search



An ugly trend...
$this->bbcode_second_pass_quote('', '[')b]Why Are Food Prices Spiking? (Charts)

Image

Total US wheat production has dropped from 58.74 million metric tons in 2004 to a projected 49.32 in March of 2007. That's a drop of 16%. Over the same period (2004 to Match 2007's yearly projection) all European countries have decreased wheat production as well. Australia -- which has been hit by a drought -- has seen production drop from 22.60 to 10.5 million metric tons. Overall world production has dropped from 628.59 million metric tons in 2004 to 593.11 million metric tons -- a decrease of 5.62%.

US and world production of course grains is also down. US production has dropped from 319 million metric tons in 2004 to a projected 280 million metric tons in 2007. That's a decrease of 12.2%. Overall world production has dropped from 1,014 million metric tons in 2004 to a projected 966 million metric tons in March 2007. That's a decrease of 4.73%.

http://mparent7777.blogspot.com/2007/03 ... iking.html


Ratchet up your doomer index?
$this->bbcode_second_pass_quote('sun-sentinel - December 18, 2007', 'N')EW YORK - Wheat prices surged above $10 a bushel for the first time ever Monday amid concerns that strong demand globally could result in a grain shortage in the United States next year — worsening food price inflation.

Other commodities markets mostly declined, with energy, other agricultural futures and metals moving lower.

U.S. wheat supplies have dwindled this year as one wheat crop after another worldwide has been damaged by poor weather, most recently in Australia and Argentina. That's sent buyers scrambling for stockpiles at any cost. U.S. wheat exporters already have sold more than 90 percent of the 1.175 billion bushels the U.S. Department of Agriculture expects will be exported during the whole marketing year, which ends in June 2008.

Wheat prices crossing $10 a bushel won't immediately translate into a spike in retail prices for bread, cereal, cookies and other products, experts say. That's partly because companies like Kellogg Co., General Mills Inc., ConAgra Foods Inc. and Kraft Foods Inc. typically protect themselves from price volatility with long-term supply contracts. But analysts say consumers should expect higher prices in the grocery aisle.

...Wheat prices have hit a record high each of the past three trading sessions and have doubled since the start of the year, when wheat traded for about $5 a bushel...

...In the market panics of previous years, prices would rise to a level that developing countries couldn't afford. But it's not clear where that peak is now, said Mark Schultz, analyst with Northstar Commodity...

Link
http://www.sun-sentinel.com/business/sf ... 2767.story

More links
http://www.foxbusiness.com/article/whea ... 71_44.html
http://www.bloomberg.com/apps/news?pid= ... refer=home
http://www.economist.com/displaystory.c ... d=10250420


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Re: "Forget oil, the new global crisis is food"

Postby steam_cannon » Sat 05 Jan 2008, 14:23:52

$this->bbcode_second_pass_quote('Twilight', '')$this->bbcode_second_pass_quote('dorlomin', 'I')f Japan intends a big increase is stockpiles then it will likely be yet another factor increasing prices next year bringing famine closer for many of the worlds poorest. But I guess it is an acceptable means of using there dollars for something more worthwhile than US treasury bonds.

You got it. The wealthy internet-using northern nations of the world won't have to worry about food for a while yet. We'll use our superior buying power to stock up and let the south worry about it.
Yeah, Japan and countries with cash or grain to export will be winners at this stage of the game...

$this->bbcode_second_pass_quote('article', '"')You're going to have real problems in countries that are food short, because we're already getting embargoes on food exports from countries, who were trying desperately to sell their stuff before, but now they're embargoing exports," he said, citing Russia and India as examples.
I also thought it was interesting that the issue of not freezing exports of grains has already come up in several countries...

A few more thoughts...
$this->bbcode_second_pass_quote('steam_cannon', '
')It's a very interesting article and suggests that the food problems I've posted about are accelerating faster then I would have thought.

The article also gives incite into who the winners and losers will be:
* Countries with grain for export will have big advantages. This presently includes countries such as Ukraine and the US... But the US will be facing a LaNina year in 2008 expected to result in reduced harvests. Plus in the long term the US is accumulating damage from aquifer depletion and is likely to suffer from climate change in the next 5 - 20 years bringing megadrought to the mid west and drought to other parts of the country.
* Countries with access to fertilizers will have an advantage. However shortages are already cropping up in the US, so fertilizer is likely to be a big issue.
* I think we can reasonably predict meat prices will be skyrocketing due to increased production costs. So meat farmers will lose and consumers will lose.
* Another thing we can assume, Corn Ethanol will eventually be phased out of use for fuel production.

List of countries with enough land to grow food and all fuel
http://www.peakoil.com/fortopic28369.html

No bread on the shelves
http://www.peakoil.com/fortopic35034-0-asc-45.html
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Re: "Forget oil, the new global crisis is food"

Postby cube » Sat 05 Jan 2008, 21:41:22

$this->bbcode_second_pass_quote('LoneSnark', 'O')nce again I see I must give my "infinity" speech. .............
So, over the next hundred years ever less oil will be available, but so what we have substitutes: unconventional oil, coal, nuclear, and conservation.
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Did somebody say "conservation"? I see a future scenario where people eat "lower" on the food scale:
1) cut back on grain fed cattle
2) cut back on "luxury" foods: strawberries and cream
3) cut back on exotics such as: star fruit, papaya
4) cut back on packaged foods: instead of eating Rice-A-Roni just eat regular bagged rice.
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Re: "Forget oil, the new global crisis is food"

Postby pup55 » Sun 06 Jan 2008, 00:59:15

Like most good North Americans, I am having a little trouble envisioning widespread food shortages in NA, lasting more than the length of the average blizzard or ice storm. So I have a few questions:

First of all, if there is no food in suburbia, how long until there are piles of burning tires in the streets?

If there is no food in suburbia, will you still have to go to work? Will they shut the office down if a lot of people cannot get food?

If you are the boss, at what point do you shut down the office, in a food shortage? If one of your employees has had the brains to keep a few weeks worth of food on hand, should you ask him to share it with the rest of the people in the office? Same question for other communities/church? school?

Do you, or do you not, let the desparate housewife across the street do without food for a couple of days (not that she could not stand to lose an extra pound or two), or do you give her a few pounds of beans from your stash.

If there is a food shortage, at what point will the mickey d's run out of pre-processed, pre-packaged food? Is there really such a thing as a food shortage if mickey d's is still open? In other words, will this food shortage really affect everyone, or just the unprepared? If the mickey d's are still open, can they charge $10 for a burger?

I anticipate that in a food shortage, I could probably go for a couple of weeks just eating all of the old cans of vegetables in the back of the pantry, Although boring, I would certainly not starve. So, if someone could give some ideas as to how such a scenario will evolve, it would be good.

Like I said, I am having a little trouble envisioning this.

Water, I can see much easier. The water shuts down on one day, and everything comes to a screeching halt until or unless someone fixes it.

Food, I am thinking that disaster will take awhile to play out. By then, maybe we can lay in a supply of ramen noodles.
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Re: "Forget oil, the new global crisis is food"

Postby cube » Sun 06 Jan 2008, 03:03:36

$this->bbcode_second_pass_quote('pup55', 'L')ike most good North Americans, I am having a little trouble envisioning widespread food shortages in NA, lasting more than the length of the average blizzard or ice storm. So I have a few questions:

............................

Like I said, I am having a little trouble envisioning this.

Water, I can see much easier. The water shuts down on one day, and everything comes to a screeching halt until or unless someone fixes it.

Food, I am thinking that disaster will take awhile to play out. By then, maybe we can lay in a supply of ramen noodles.
I think there's an implicit hint that if you are one of the 1 billion privileged people who live in the industrialized world, you have nothing to worry about...for now. As for the rest of the 5.5 B people...errr. When a system collapses it is the poor who die off first.
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Re: "Forget oil, the new global crisis is food"

Postby pup55 » Sun 06 Jan 2008, 03:22:27

$this->bbcode_second_pass_quote('', 'i')t is the poor who die off first


From a practical standpoint, all I am saying is it will take a long time for it to hit suburbia with the exception of shortages of maybe perishable stuff like bread or meat. Us jerks will probably end up paying more for it, but once again, no problem getting it. I do not know how many months' storage there is in the supply chain for flour, but I am thinking probably 12. Maybe less, now that a lot of this stuff is grown in Argentina.

So if some event happened that caused the food production or distribution system to break down in North America, we would probably have quite a long warning time.

But, you are right: If you are poor, or living in some land with a fragile food infrastructure, or living in some chaotic land, your chances of being affected by this are much greater.

I am thinking Pakistan, on all three counts.
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Re: "Forget oil, the new global crisis is food"

Postby mattduke » Tue 08 Jan 2008, 12:43:04

"With the rising cost of milk, eggs, meat and produce contributing to the biggest jump in food prices in 17 years, consumers are starting to feel the pinch."

"Some shoppers, already dealing with falling home values and rising fuel costs, are finding creative ways to save, opting for cheaper ingredients and private-label goods and leaning more heavily on discount grocers. And restaurant diners, who have been eating out less frequently, will likely face even higher prices on menus."

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Yet Another "End of cheap food" article (YAEOCFA)

Postby mattduke » Mon 21 Jan 2008, 19:14:46

$this->bbcode_second_pass_quote('', ''')Habits will change, although it's unlikely we're going to see Soviet-style queues at empty shelves.'

'It's something the industry has expected and is thus, hopefully, a manageable cycle,' he says. 'No hunger riots. But we have enjoyed food prosperity for a long time, and we're seeing the end of that.'


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Re: Yet Another "End of cheap food" article (YAEOC

Postby LoneSnark » Tue 22 Jan 2008, 02:31:26

Or we could eliminate the Ethanol subsidies and the food problem will go away tomorrow.
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Re: Yet Another "End of cheap food" article (YAEOC

Postby dohboi » Tue 22 Jan 2008, 03:55:54

Damn it! I hate agreeing with LS on anything. He is wrong about just about everything else, but right here.

Proving the adage that "even a broken clock is right twice a day."
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Re: Yet Another "End of cheap food" article (YAEOC

Postby MrBill » Tue 22 Jan 2008, 07:26:58

$this->bbcode_second_pass_quote('', ''')It's going to be interesting,' says James Walton, chief economist with the food retail industry's education body, IDG. 'UK shoppers aged under 50 have so far never experienced food-price inflation.' Essentially, throughout most Britons' lifetimes, food has become cheaper. But, in December, the inflation rate (by the government's preferred consumer price index, the CPI) was 2.1 per cent, while for all foods it was 5.9 per cent. 'Habits will change, although it's unlikely we're going to see Soviet-style queues at empty shelves.'


Is this then not a regression to the mean if food has been getting progressively cheaper in real terms? Did we expect food prices to go to zero?

Commodities had been on a downwards tragectory for well over two decades until prices finally bottomed out. This has been disasterous for the farm community. And perhaps more importantly for investment in agriculture infrastructure given that higher incomes and a growing populations were evenutally going to use up existing spare capacity. That require new investment in capacity.

How wonderful then that stores like - Lidl - a German discounter that has successfully seen off a challenge from Wal-Mart - can automatically lower grocery bills for its customers simply by the virtue of their business model that cuts 40% off retail prices? That means that those customers can buy 166% more for the same amount of money as in other stores. That certainly makes a huge difference if you are on a fixed income and every 10% increase in food prices makes a difference to your limited budget.

Thank goodness we have competition to give consumers what they want at a price they can afford! Imagine if there was only the Co-op or Waitrose? Brrr, horrible! ; - )
The organized state is a wonderful invention whereby everyone can live at someone else's expense.
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Food too expensive, time to eat dirt

Postby frankthetank » Tue 29 Jan 2008, 23:00:16

This can only get worse.

$this->bbcode_second_pass_quote('', 'I')t was lunchtime in one of Haiti's worst slums, and Charlene Dumas was eating mud. With food prices rising, Haiti's poorest can't afford even a daily plate of rice, and some take desperate measures to fill their bellies. Charlene, 16 with a 1-month-old son, has come to rely on a traditional Haitian remedy for hunger pangs: cookies made of dried yellow dirt from the country's central plateau.

The mud has long been prized by pregnant women and children here as an antacid and source of calcium. But in places like Cite Soleil, the oceanside slum where Charlene shares a two-room house with her baby, five siblings and two unemployed parents, cookies made of dirt, salt and vegetable shortening have become a regular meal.


$this->bbcode_second_pass_quote('', 'F')ood prices around the world have spiked because of higher oil prices, needed for fertilizer, irrigation and transportation. Prices for basic ingredients such as corn and wheat are also up sharply, and the increasing global demand for biofuels is pressuring food markets as well.

The problem is particularly dire in the Caribbean, where island nations depend on imports and food prices are up 40 percent in places.


$this->bbcode_second_pass_quote('', 'A')t the market in the La Saline slum, two cups of rice now sell for 60 cents, up 10 cents from December and 50 percent from a year ago. Beans, condensed milk and fruit have gone up at a similar rate, and even the price of the edible clay has risen over the past year by almost $1.50. Dirt to make 100 cookies now costs $5, the cookie makers say.


$this->bbcode_second_pass_quote('', 'A') reporter sampling a cookie found that it had a smooth consistency and sucked all the moisture out of the mouth as soon as it touched the tongue. For hours, an unpleasant taste of dirt lingered.


http://www.adn.com/24hour/topstories/story/297699.html
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Re: Food too expensive, time to eat dirt

Postby Ferretlover » Tue 29 Jan 2008, 23:14:32

8O
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Re: Food too expensive, time to eat dirt

Postby pup55 » Tue 29 Jan 2008, 23:23:34

Frankthetank, you forced me to once again refer to the CIA World Factbook:

Haiti

We have done several of these lately, and the conclusion unfortunately is exactly the same.

They are trying to support 1100 people per arable square km, about five times that of the US.

42% of the population is under 14, which means that there is an excellent chance for the population to double within the next 10 years, and reach the Bangladesh population density.

63 deaths per 1000 live births, ten times higher than the US

5% of the population admitting to having AIDS, with all of that reproduction going on you gotta wonder.....

80% of the population under the poverty limit....

Unemployment? What is employment? 2/3 of the population does not have a "job" per se.

Oil production--zero
Oil consumption: 12,000 barrels per day.

I hate to say it again, but....a lot of people are going to die.

I feel sorry for the people in the Dominican Republic. They inhabit the same island, but are slightly better off. 848 people per square km, slightly better off in infant mortality, and slightly less poor, population rate about 1.5%, better off, but not much. Can you guess what is going to happen?
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Re: Food too expensive, time to eat dirt

Postby mattduke » Tue 29 Jan 2008, 23:25:29

Image

I think the graphic says it all. Yet another expensive food article. This one at Financial Times.

ft
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Re: Yet Another "End of cheap food" article (YAEOC

Postby mattduke » Tue 29 Jan 2008, 23:31:17

Image

Yet another. Got MOO? Got DBA?

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Re: Food too expensive, time to eat dirt

Postby SILENTTODD » Tue 29 Jan 2008, 23:37:04

Haiti is not a fair example. It is a densely populated half of an island, Hispaniola that has had a series of grossly corrupt and incompetent governments approved by the United States for at least the last 100 years.

It may very well be the Haiti half of the island is beyond its carrying capacity. But the other half of the island, the Dominican Republic, is never mentioned when the subject of Haiti is brought up. Extremely poor also, but no where near the magnitude of problems in Haiti.
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