Australia drought withers small towns

Australia is suffering one of its worst droughts on record, hurting wheat farming just as the world faces a food crisis. Australia is usually the world’s third or fourth-largest exporter of wheat. But exports dropped 46% from 2005 to 2006, then fell 24% last year.

Most of its exports go to the Middle East and Southeast Asia to make bread and cereals, but the fall in supply has led to soaring prices. A ton of Australian wheat costs $367, compared with $258 in early 2007, an increase poorer countries can ill afford.

LATimes