by steam_cannon » Tue 18 Mar 2008, 12:50:15
$this->bbcode_second_pass_quote('Ainan', 'P')eak oil and peak food on msn? The end is really nigh.
I love this stuff! If I said a few years ago that mainstream news
would be talking about peak oil and even use the word famine, just a
few years ago that would have been crazy talk! Oh how the times
are changing...
$this->bbcode_second_pass_quote('', '[')b]Empty global cupboards
Shortages are real. The Financial Times reports that rice stocks
have fallen this year to about 70 million tons, the lowest level in 25
years and less than half the total held in global inventories in 2000.
Wheat inventories, called "carry-overs" in the trade, are at 30-year
lows even though world wheat production was actually up 1% last
year. In the past year, reports show, wheat inventories in the
European Union have plunged to 1 million tons from 14 million tons.
A leading Canadian fertilizer executive told analysts recently that
according to his company's calculations,
global grain reserves are
"precarious," at just 1.7 months of consumption, down from 3.5
months of reserves as recently as 2000. I've been talking about this one for a while, it's interesting other people are noticing this too.
They save the [s]worst[/s]
best stuff for page 2
$this->bbcode_second_pass_quote('', '[')b]Could we really run out of food? Page 2
Now the really bad news is that we might actually have been lucky
in the past few years, as global warming has lengthened growing
seasons in the American Plains, sometimes called the Saudi Arabia
of corn. BMO's Coxe notes that the U.S. Midwest has enjoyed 17
straight years without significant crop failure, the longest winning
streak on record. If this fortunate run ends soon, we'll likely face a
worldwide crisis.
Some researchers, including climatologist Elwyn Taylor of Iowa
State University, believe it could happen this year, as La Nina
conditions are emerging at a time when the
Midwest has become
vulnerable due to a drought creeping up from the South.Food prices are already way up in America but not as much as feed
prices because manufacturers, processors and retailers such as
Wal-Mart Stores (WMT, news, msgs) have found ways to hold the
line by cutting expenses. But they can dam up the flood of food
inflation for only so long. Just this week, Procter & Gamble (PG,
news, msgs) announced it was raising prices on many of its foods
products, including Folgers coffee. J&J Snack Foods said it would lift
prices by as much as 12% in April to offset costs, and local
newspapers have been rife with stories about pizzerias both raising
prices and cutting back on crust thickness and cheese quantities.
...
If global famine is one bad crop away, then surely there is
an investment angle.
...Coxe's solution: As a first step, shut down all ethanol plants
immediately. "
It's criminal to burn corn for fuel when we are out of
food," he said. In a particularly pernicious development, he noted
that a big boost in demand for soybeans for use as biodiesel in
Europe has driven up the price of palm oil in Southeast Asia, where
it is the main source of protein for the poor.
http://tinyurl.com/3297yy come to a surprise to anyone here. Pretty heavy stuff for a mainstream
news article.
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