Driving these increases are a complex range of developments, including rapid urbanization of populations and growing demand for food stuffs in key developing countries such as China and India, speculation in the commodities markets, increased diversion of feedstock crops into the production of biofuels, and extreme weather conditions and other natural disasters associated with climate change.
Because of the long-term and compounding nature of all of these factors, the problems of rising prices and decreasing supplies in the food system are not temporary or one-time occurrences, and cannot be understood as cyclical fluctuations in supply and demand.
The world reserves of cereals are dwindling. In the past year, wheat stores declined 11 percent. The FAO notes that this is the lowest level since the UN began keeping records in 1980, while the US Department of Agriculture (USDA) has reported that world wheat stocks may have fallen to 47-year lows. By FAO figures, the falloff in wheat stores equals about 12 weeks worth of global consumption.
The USDA has cautioned that wheat exporters in the US have already sold more than 90 percent of what the department had expected to be exported during the fiscal year ending June 2008. This has dire consequences for the world’s poor, whose diets consist largely of cereal grains imported from the United States and other major producers.
More than 850 million people around the world suffer from chronic hunger and other associated miseries of extreme poverty. According to the FAO, 37 countries—20 in Africa, 9 in Asia, 6 in Latin America, and 2 in Eastern Europe—currently face exceptional shortfalls in food production and supplies.
Those most affected live in countries dependent on imports. The poorest people, whose diets consist heavily of cereal grains, are most vulnerable. Already the poor spend the majority of their income on staple foods—up to 80 percent in some regions, according to the FAO. Ever-rising prices will lead to a distinct deterioration in the diets of these sections of the population.
The food crisis is intensifying social discontent and raising the likelihood of social upheavals. The FAO notes that political unrest “directly linked to food markets” has developed in Morocco, Uzbekistan, Yemen, Guinea, Mauritania and Senegal. In the past year, cereal prices have triggered riots in several other countries, including Mexico, where tortilla prices were pushed up 60 percent. In Italy, the rising cost of pasta prompted nationwide protests. Unrest in China has also been linked to cooking oil shortages.
In addition to the cost of imports, war and civil strife, multiple years of drought and other disasters, and the impact of HIV/AIDS have crippled countries’ food supply mechanisms.
Iraq and Afghanistan both suffer severe shortfalls because of the US invasion and ongoing occupation. North African countries are hard hit by the soaring wheat prices because many staple foods require imported wheat.
Countries of the former Soviet Union are facing wheat shortages. People there spend upwards of 70 percent of their incomes on food; the price of bread in Kyrgyzstan has risen by 50 percent this year and the government released emergency reserves of wheat in the poorest areas to temporarily ease the crisis.
In Bangladesh, food prices have spiraled up 11 percent every month since July; rice prices have risen by nearly 50 percent in the past year.
Central American countries saw a 50 percent increase in the price of that region’s staple grain, corn. Several countries in South America have also been impacted by the high international wheat prices, compelling national governments to dispense with import taxes. The government in Bolivia, for example, has dispatched the military to operate industrial-scale bread bakeries.
All national governments are keenly aware of the possibility of civil unrest in the event of severe food shortages or famine, and many have taken minimal steps to ease the crisis in the short term, such as reducing import tariffs and erecting export restrictions. On December 20, China did away with food export rebates in an effort to stave off domestic shortfalls. Russia, Kazakhstan, and Argentina have also implemented export controls.
But such policies cannot adequately cope with the crisis in the food system because they do not address the causes, only the immediate symptoms. Behind the inflation are the complex inter-linkages of global markets and the fundamental incompatibility of the capitalist system with the needs of billions of poor and working people.
The volatility of the financial markets, driven by speculation and trading in equity and debt, intersects with the futures and options markets that have a direct bearing on agricultural commodity markets. As the housing market in the United States collapsed, compounding problems in the credit market and threatening recession, speculation shifted to the commodities markets, exacerbating inflation in basic goods and materials. The international food market is particularly prone to volatility because current prices are greatly influenced by speculation over future commodity prices. This speculation can then trigger more volatility, encouraging more speculation.
Future grain prices are a striking example of this disastrous cycle. On December 17, speculation on wheat and rice for delivery in March 2008 forced prices to historic highs on the Chicago Board of Trade. Wheat jumped to more than $10 a bushel on projections of worsening shortages and inflation. This level is double the $5-a-bushel price of wheat at the beginning of 2007.
Japan, the largest wheat importer in Asia, announced December 19 that it may raise wheat prices by 30 percent. The same day, Indian government officials warned of impending food security problems. These were due, according to Prime Minister Manmohan Singh, to “clouds on global financial markets following the sub-prime lending crisis.”
Soybean and corn prices have also been pushed up to 34-year and 11-year highs, respectively, on the projected shortages and demand for biofuel. These new trading levels become the agricultural benchmarks for subsequent trading, and, as the Financial Times put it December 17, have the consequence of “raising inflationary pressure and constraining the ability of central banks to mitigate economic slowdown.”
Higher fuel costs ultimately lead to higher food prices, via higher shipping charges, particularly for nations that import a large proportion of their staple foods. Shipping costs for bulk commodities have increased by more than 80 percent in the past year and 57 percent since June, according to the Baltic Exchange Dry Index.
The FAO report noted that the enormous increase in freight costs has had the effect of dis-integrating the world market in certain regions because many import-heavy countries have opted to purchase from closer suppliers, resulting in “prices at regional or localized levels falling out of line with world levels.”
The rising oil price not only affects the costs of transportation and importation. It also has a direct impact on the costs of farm operation in the working of agricultural and industrial processing machinery. Moreover, fertilizer, which takes its key component, nitrogen, from natural gas, is also spiking in price because of the impact of rising oil prices on the demand and costs of other fuels. By the same token, as oil prices rise, the demand for biofuel sources such as corn, sugarcane, and soybeans also rises, resulting in more and more feedstock crops being devoted to fuel and additives production.
In the US, the use of corn for ethanol production has doubled since 2003, and is projected by the FAO to increase from 55 million metric tons to 110 million metric tons by 2016. The US government is more ambitious. On December 19, President Bush signed a new energy bill into law which contains a mandate for expanding domestic biofuel production five-fold over the next 15 years, to more than 36 billion gallons a year. Already a third of the US corn harvest is devoted to ethanol production, surpassing the amount of corn bound for the world food markets.
As more US cropland is devoted to ethanol-bound corn, other major agricultural regions are struggling with weather disasters associated with climate change. Australia and the Ukraine, both significant exporters of wheat, have suffered extreme weather that damaged crops. A prolonged drought in southern Australia has curtailed farming to such a degree that many farmers have sold their land.
Current research suggests that as temperatures rise over the next fifty years by 1 to 2 degrees Celsius, poor countries may lose 135 million hectares (334 million acres) of arable land because of lost rainfall. In new studies published earlier this month in the Proceedings of the National Academy of Sciences, researchers have cautioned that this estimate may be conservative, and that the impact of climate change on food production has been over-simplified.
According to NASA/Goddard Institute of Space Studies researcher Francesco Tubiello, complications of climate change on the world food supply may be far worse than previously predicted: “The projections show a smooth curve, but a smooth curve has never happened in history. Things happen suddenly, and then you can’t respond to them.”
Tubiello’s research focuses on extreme weather events that have devastated entire crops when they coincided with germination and blossoming periods, as was the case with Italy’s corn crop in 2003. Tubiello noted that corn yield in the Po valley growing region fell to 36 percent following a heat wave that raised Italy’s temperatures 6 degrees over the long-term average.
In addition to the survival thresholds of plants, researchers have begun studying the effects of higher temperatures on the physiology and diseases of livestock, as well as the spread of pests, molds and viruses native to tropical zones. Goddard Institute research has suggested that bluetongue, a viral disease of cattle and sheep, will move outward from the tropics into regions including southern Australia. According to the Earth Institute at Columbia University, higher temperatures will lead to higher infertility in livestock and lower dairy yields.
The implications of these studies are that farming adaptations such as hardier crops and shifts in planting times may initially mitigate anticipated global warming. Yet over the coming decades, the stress of climate change on the food supply will also intensify in abrupt and catastrophic ways for which the capitalist system and its ruling elites are entirely unprepared and which they are unable to prevent.
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So, I suppose that the next step is
23.12.2007 17:52
Oh the beauty of it. Next we'll be told that there are too many people on the planet and all of this will help to readjust the balance. No matter that it is our capitalist and consumerist ways of life that have fucked the planet over. But, hey, these glorious institutions of ours will escape scott-free of course, because whatever is good for the bottom line is good for the people. Hmmm ... well, some of the people maybe. Actually, very few of the people really ... the elite, the Billionaire Club probably. The rest of us? Well, we're just the small cog-wheels who convert food and sunlight into mechanical energy to work, thereby completing the conversion of energy into money that we can then spend to help make the wheels go around. But don't tell anyone ... otherwise the illusion will shatter and we might find ourselves without a raison d'etre.
Call me Cynical
Peak Oil Famine
23.12.2007 20:03
Peak Oil And Famine: Four Billion Deaths
By Peter Goodchild
29 October, 2007
Countercurrents.org
At some point in the early years of the 21st century, there will be a clash of two giant forces: overpopulation and oil depletion. That much has been known for a long time. It is also well known that population must eventually decline in order to match the decline in oil production. A further problem, however, is that it will be impossible to get those two giant forces into equilibrium in any gentle fashion, because of a matter that is rarely considered: that in every year that has gone by — and every year that will arrive — the population of the earth is automatically adjusted so that it is almost exactly equal to its carrying capacity. We are always barely surviving. Population growth is soaring, whereas oil production is plunging. If, at the start of any year, the world’s population is greater than its carrying capacity, only simple arithmetic is needed to see that the difference between the two numbers means that mortality will be above the normal by the end of that year. In fact, over the course of the 21st century there will be about 4 billion deaths (probably about 3.6, to be more precise) above normal.
Let us refer to those 4 billion above-normal deaths as "famine deaths," for lack of a better term, since "peak oil" in terms of daily life is really "peak food." There will, of course, also be famines for other reasons. It is also true that warfare and plague will take their toll to a large extent before famine claims those same humans as its victims.
The increase in the world’s population has been rather simple: from about 1.6 billion in 1900 to about 6.1 billion in 2000 [9]. A quick glance at a chart of world population growth shows a line that runs almost horizontally for thousands of years, and then makes an almost vertical ascent as it approaches the year 2000. As Gordon and Suzuki said in 1990, "more people have been added to the Earth during the past 40 or 50 years than have been added since the dawn of man" [8]. That is not just an amusing curiosity. It is a shocking fact that should have awakened humanity to the realization that something is dreadfully wrong.
Mankind is always prey to its own "exuberance," to use William R. Catton’s term [3]. That has certainly been true of population growth. "Do you have any children?" or, "How many children do you have?" is a form of greeting or civility almost equivalent to "How do you do?" or, "Nice to meet you." But that vertical ascent of world population growth has always been hazardous. The destruction of the environment reaches back into the invisible past, and the ruination of land, sea, and sky has been well described if not well heeded. But what is not so frequently noted is that with every increase in human numbers we are only barely able to keep up with the demand: providing all those people with food, water, and living space has not been easy. We are, in other words, pushing ourselves to the limits of Earth’s carrying capacity. The same has been true for most of human history.
Even that is an understatement. In the late 20th century we actually went beyond the carrying capacity. No matter how much environmental degradation we created, there was always the sense that we could somehow get by. But in the late 20th century we stopped getting by. It is important to differentiate between production in an "absolute" sense and production "per person." Although oil production, in "absolute" numbers, kept climbing — only to decline around 2000 or 2010 — what was ignored was that although that "absolute"production was climbing, the production "per person" was not. In the year 1990 there were 4.5 barrels of oil per person per year. By the year 2000 there were only about 4.3. The same sort of problem was occurring with world grain supplies: although government sources cheerfully tell us that grain production in absolute terms is still increasing every year, what they are not telling us is that because of overpopulation the amount of grain per person is actually declining [5]. There is more grain, but there are more mouths to feed. The same problem of resources "per person" can be seen in the world’s fish catches. We are no longer getting by. We have been scraping the edges of the earth’s carrying capacity, and we are now entering a dangerous era.
But the main point to keep in mind is that throughout the 20th century, oil production and human population were so closely integrated that every barrel of oil had an effect on human numbers.
While population has been going up, so has oil production: from about 0.1 billion barrels in 1900 to about 4.2 in 1950, to about 27.0 in 2000 [1,2]. According to most estimates, the peak was (or will be) around 2000 or 2010. The rest is a steep drop: 20 billion barrels in 2020, 15 in 2030, 9 in 2040, 5 in 2050.
Exact figures on future oil production obviously do not exist. Nevertheless, the 1998 figures of Campbell and Laherèrre are commonly considered reliable. In any case, the 2007 BP Global figure of 1.2 trillion barrels of proved reserves, when divided by annual production, gives us virtually the same results as those of Campbell and Laherèrre. The main discrepancy is in the years 2000 to 2006, for which the BP report is both more up-to-date and more generous, and the BP figures for those years are therefore incorporated in the present predictions. The year 2006 has somewhat arbitrarily been chosen as the date of peak oil. The much-later projections, from 2051 onward, are merely an extrapolation (growth trend) of the projections for previous years.
Another point to keep in mind is that the relation between population and oil production is one of cause and effect. The skyrocketing of population is not merely coincident with the skyrocketing of oil production. It is the latter that actually causes the former. With abundant oil, a large population is possible — ignoring, of course, the fact that environmental degradation may eventually wipe out those human numbers anyway. Without abundant oil, on the other hand, a large population is not possible. (There is no point in belaboring theories of "alternative energy." [5,6]) It was industrialization, improved agriculture, improved medicine, the expansion of humanity into the Americas, and so on, that began the upward climb, but it is oil that has allowed human numbers to triple over the last 70 years.
Incidentally, carrying capacity does not increase in direct proportion to the number of barrels of oil per person, because as the population goes up there is more strain on the environment. As a result, we were comfortable enough with 1 barrel per person in 1940, but less comfortable with 4 barrels per person in 1990.
Because oil production is the determining factor in population growth, we now have a useful set of numbers: the "existing population" for any given year in the past is roughly the same thing as the "carrying capacity" for that year. We can thereby deduce another useful set of numbers: the "existing population" at the start of any given year in the future must decrease to become the "carrying capacity" for that year. "Oil production determines carrying capacity": that is an immutable law.
Human population will collapse in any year in which there is a difference between the initial population and the carrying capacity. The equation is not complex: (A) the previous year’s population (in billions) can be subtracted from (B) the carrying capacity (in billions) to give us (C) the number of deaths (in billions) by famine. The data for carrying capacity can be inserted by looking at similar data for oil production and population in the years 1900 to 2000. Some samples of future years are:
2031 (oil 13.8G bbl): (A) 3.5 minus (B) 3.4 equals (C) 0.1
2032 (oil 13.2G bbl): (A) 3.4 minus (B) 3.4 equals (C) 0.1
2033 (oil 12.6G bbl): (A) 3.4 minus (B) 3.3 equals (C) 0.1
(The "normal," non-famine-related, birth and death rates are not included in these figures, since for most of pre-industrial human history the sum of the two — i.e. the "growth rate" — has been nearly zero. And the future will be generally "pre-industrial.")
Applying the above equation to all the years from 2000 to 2100, we arrive at a total number of famine deaths of about 4 billion, with the greatest annual mortality in the earlier years. Following these equations further down the years, we find that by 2100 there are still 2 billion humans, with 10 million famine deaths in that year of. The famine deaths do not become zero until nearly the end of the 22nd century, when the population reaches about 1 billion, with almost no oil left, duplicating the conditions of the year 1900 or earlier. That 22nd century may add another 1 or 2 billion famine deaths to the 4 billion of the 21st century. These later figures, of course, are far less reliable. War, disease, global warming, topsoil deterioration, and other factors will have unforeseeable effects of their own.
These equations obliterate all previous estimates of future population growth. Instead of a steady rise over the course of the century, there will be a sudden slump, with the clash of the two giant forces of overpopulation and oil depletion, followed by a less precipitous ride into the unknown future.
SOURCES, REFERENCES, AND FURTHER READING
1. BP Global Statistical Review of World Energy. June 2007.
2. Campbell, Colin J. and Jean H. Laherrère. The End of Cheap Oil. Scientific American, March 1998.
3. Catton, William R. Overshoot: The Ecological Basis of Revolutionary Change. Urbana, Illinois: U of Illinois P, 1982.
4. Duncan, Richard C. The Peak of World Oil Production and the Road to the Olduvai Gorge.
5. Earth Policy Institute. Earth Policy Indicators.
6. Goodchild, Peter. Peak Oil and the Myth of Alternative Energy. Countercurrents. Sept. 6, 2006.
7. . -----. Peak Oil and the Problem of Infrastructure. Countercurrents. Sept. 29, 2006.
8. Gordon, Anita, and David Suzuki. It’s a Matter of Survival. Toronto: Stoddart, 1990.
9. United Nations Population Fund. World Population to 2300. New York: United Nations.
Capitalism is Genocide
Homepage:
http://www.countercurrents.org/goodchild291007.htm
Is A World Wide Famine In The Works?
23.12.2007 20:20
World hunger is one of them. The last century was dotted with mass famines, all of them man made. Surely the UN and the leading nations of the world would not let that sorry record repeat itself?
It appears, however, that they will. The UN is doing its part to help prevent famines, but the UN can only do what the leading nations, represented on the Security Council will allow it to do. We must remember that any criticism of the UN is in reality a criticism of the five permanent members of the SC.
At any rate, the UN has warned us that a famine of Biblical proportions may be on the way. Tuesday's New York Times has the story. "World Food Supply is Shrinking, U.N. Agency Warns," by Elisabeth Rosenthal (12-18-07). Here is the gist of it.
Jacques Diouf, who runs the UN Food and Agriculture organization has stated that there "is a very serious risk that fewer people will be able to get food" in the coming years. That doesn't sound very good at all. Rosenthal, reporting from Rome, says his reason for announcing this is that because of "an 'unforeseen [?] and unprecedented' shift, the world food supply is dwindling rapidly and food prices are soaring [good old supply and demand] to historic levels."
There appears to be only 12 weeks worth of wheat and 8 of corn left in storage (based on world wide consumption levels.) to feed the world in case of an emergency. One reason for this is that it is more profitable to grow non food crops than food crops. There has been "a shift away from farming for human consumption to crops for biofuels and cattle feed" [more McDonald's burgers for the First World obese]. And, don't overlook the fact that "the early effects of global warming have decreased crop yields in some crucial places."
The leader of the World Food Program, Josette Sheeran, is quoted as saying, "We're concerned that we are facing the perfect storm for the world's hungary." Other experts are equally glum. A major, crop disease or climate change in an important area would put the hungary in "a risky situation." This has already happened in Australia (lack of rain) and In Ukraine (also climate change) with less food being produced.
The UN's Diouf thinks the advanced countries will have to come up with new ideas to reflect the new economic and environmental realities. New ideas are in the works, but they may be based on putting people before profits. When has the US done that lately?
But not to worry here in the USA. We will be able to ride it out. Ms. Sheeran noted that, "In the U.S., Australia and Europe, there's a very substantial capacity to adapt to the effects on food -- with money, technology, research and development. In the developing world, there isn't." It's comforting to know that if disaster strikes it will be the poor of the Third World who die off while we will continue to pollute the atmosphere, destroy the climate, and have all the junk food we need to see us through.
Thomas Riggins
Homepage:
http://www.countercurrents.org/riggins211207.htm