A grain of hope
September 9th, 2010First of all an apology is owed for the poor attempt at humour in the title of this post because actually the meaning is much more literal. The United Nations Food and Agriculture Organization is currently downplaying fears of a global food crisis being flamed by the widespread drought in Russia which caused a drop in wheat production and a subsequent Government ban on grain exports. Senior economists at the FAO claim that overall crop production levels are historically high although they do admit to being concerned by the speed of the recent rises, which has seen grain prices hit two year highs on the commodity markets while the price of wheat has risen by 50% since the start of July.
World Food Programme delivers food to Haiti – Image: Peter Casier /UNWFP
Clearly the ability of one large exporting state to cause prolonged volatility in the commodity markets coupled with the unpredictable effects of climate change means that the potential of increasing food prices and possible shortages gives us all a reason to be concerned. Of course while some of us will be more than a little annoyed as the price of a decent pint goes past £4, it is in poorer households globally that the increase in prices is most keenly felt. Indeed, some of the world’s poorest countries are already suffering the consequences as witnessed by the death of six people in the Mozambique capital Maputo this week. Maputo saw riots have break out in response to the 25% rise in the price of bread this year, the declining currency and rising water and fuel prices all of which could potentially lead to political unrest.














