Thursday, October 04, 2012

Blog 6: Global Food Price Increases-10/4/12


Food prices rose by 1.4% in regards to most dairy and cereal products, meat and little of agricultural commodities according to the Food and Agricultural Organization (FAO). According to the FAO, this problem revolves around the rise in food prices to be causation from food shortages while drought stagnates the Western United States, Europe and Central Asia due the lack of water. Global cereal production is also reducing from 2.295 billion tones to 2.286 billion tones that FAO estimated during September. 
Economic researchers from FAO estimate that food prices are going to remain high and volatility might increase deterring normalization of prices from coming back. Researchers also warn grocery shoppers that volatility might intensify in the near future. According to the FAO's Food Price Index, cereal prices rose from 1% from declination of maize crops, meat prices rose 2.1% from grain-intensive poultry sectors and dairy prices rose 7% due to the increasing feed costs. The FAO illustrates a positive factor in which sugar prices are falling by 4.2% due to Brazil's improving sugarcane harvest who also have the most expanded sugarcane production in the world.
As this economic volatility prevails, the poorest people face additional hunger challenges. Since the drought, agricultural prices rose 50% since June while the United States is using 40% of corn stock to produce fuel. The Renewable Fuel Standard mandates that 15 billion gallons of domestic corn ethanol will be mixed into US fuel supply by 2022. Along with the innovative domestic agricultural use, GMO foods are a concern now. The European Union is an example of abolishing GM foods into their country with exceptions to animal feed, but they show a prime example of not trusting the unreliable information GM food companies provide for consumers. GM foods need to be more secure and have no affect on environment and diminish biodiversity. 

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