[NTBKtrader]

Poor countries are likely to have to cut food consumption after an “alarming” increase in their agricultural commodities bill, the United Nations’ Food and Agriculture Organisation warned on Wednesday.

The FAO said its biannual Food Outlook report that high and volatile prices of grains, such as wheat and maize, could curtail procurement in many countries.

“Given the firmness of food prices in the international markets, the situation could deteriorate further in the coming months leading to reduction in imports and consumption in many low-income food-deficit countries,” it said.

The world’s food import bill will rise in 2007 to $745bn, up 21 per cent from last year. Developing countries’ food bill will increase 25.5 per cent, to almost $233bn, acording to FAO estimates. The annual food expenditures for the most vulnerable countries have more than double since 2000.

http://www.ft.com/cms/s/0/6be9fe80-8ca2 ... ck_check=1

[MrBill]

I wonder where many of these low income, food deficit countries score on Transparency International's scale of corruption?

What are the costs of corruption?

Probably a very high correlation between under-development, poverty and a high corruption score.

Did any one doubt that bureacracy, corruption, incompetence and poor government would exacerbate high food and energy prices in the developing world much less physical shortages?

UPDATE:
$this->bbcode_second_pass_quote('', 'D')oes Asia have more to fear from rising petrol prices as crude oil hurtles towards $100 a barrel than it does from slowing growth in its biggest export market of the United States?

In fact, both rising prices and U.S. demand are cause for concern that could ultimately leave Asian central banks with a policy dilemma, economists say.

Rising prices fuelled not only by oil but also by food point to the need for tighter monetary policy to control inflation.

But tighter monetary conditions could crimp domestic spending just when policy makers want to lean on local demand to make up for a slowdown in exports to the United States, where a housing downturn is expected to drag on economic activity.
-----------------------------------------------------------------------------------
(con't)
Oil has less than a 20 percent weighting in most Asian consumer price index baskets, but food accounts for up to 50 percent. A combination of rising food and fuel prices could cripple consumers and industries.

[Andrew_S]

I was wondering about a thread on food prices and the social effect.
I believe pensioners were protesting in Russia a couple of days ago. Food price inflation is high in Eastern Europe.

Maybe this could be the food prices thread.

[roccman]

Very bad...

Things we have posted about for years...and all of it ...ALL OF IT...coming full circle.

[bodigami]

$this->bbcode_second_pass_quote('MrBill', 'I') wonder where many of these low income, food deficit countries score on Transparency International's scale of corruption?

What are the costs of corruption?
(...)

[MrBill]

$this->bbcode_second_pass_quote('zensui', '')$this->bbcode_second_pass_quote('MrBill', 'I') wonder where many of these low income, food deficit countries score on Transparency International's scale of corruption?

What are the costs of corruption?
(...)

[NTBKtrader]

With food prices in China soaring 17.6 per cent last month from a year earlier, Mrs. Zhao is just one of millions of low-income Chinese people who are feeling the squeeze. The human pain of rising inflation is triggering new fears of social unrest and raising concerns about an overheating economy and the danger of an inflationary impact on the global economy.

For years, China has been helping to keep prices low in Canada and around the world, providing a deflationary benefit through low-priced exports that appeared to be infinitely expandable. But some analysts warn that this deflationary benefit could soon be coming to an end as China struggles to control its surging economy.

China reported yesterday that its inflation rate had rebounded to 6.5 per cent last month, its highest level in 11 years, sparking new doubts about the effectiveness of its efforts to prevent overheating. Food prices were the biggest contributor, with vegetable prices rising by almost 30 per cent, cooking oils jumping 34 per cent, and the price of pork - a mainstay of the Chinese diet - escalating 55 per cent.

http://www.theglobeandmail.com/servlet/ ... y/Business

[MrBill]

$this->bbcode_second_pass_quote('', 'C')hina's central bank had aimed to keep inflation to 3 per cent this year, but last week it was forced to acknowledge that inflation would be closer to 4.5 per cent this year.

There are other signs, too, that the economy could be overheating. Producer prices, led by steel and cement, rose 3.2 per cent in October from a year earlier. Property prices are soaring. The money supply is expanding rapidly. Wages are climbing. And inflationary expectations are increasing.