Experts predict that by the end of the year, humanity will face a global food crisis unlike any we’ve encountered before. Due to persistent droughts, which continue to sap crops and ruin harvests around the globe, the prices of vital grains such as wheat and rice are expected to skyrocket as the year comes to a close.
During a press conference in July, government officials reported that severe droughts have affected at least 88% of U.S. corn crops this year. As the U.S is currently the world’s leading producer and exporter of corn, this dramatic shortage in crop production is sure have several far-reaching consequences. While it’s safe to say that the projected food price increases are unlikely to dramatically impact the diets of most U.S. Americans, they will be devastating to the many low income peoples around the world who rely on grain imports for much of their daily sustenance.
In 2008, when droughts caused a shortage of rice and wheat in a similar scenario, the global food market went into chaos as each nation made a move to hoard huge stockpiles of grain in order to secure the needs of their own population. Russia, Ukraine, Argentina, and India halted grain exports, while in impoverished countries, such as Haiti and Egypt, the lower class became outraged and began to protest and riot in response to rising grain prices. Similar tensions are currently building around the globe, and it’s become clear that the pending global food crisis is being driven by more than just a lack of rain.
In accordance with this year’s ethanol mandates, the U.S. will use about 40% of its corn harvest to manufacture biofuels--primarily ethanol (the primary ingredient of which is corn). Considering the rate at which the USDA’s projected crop yield is dwindling, this 40% will be sure to have an enormous impact on the global corn market. However, some experts suggest that halting ethanol production would not be a comprehensive solution. Even if the U.S. were to waive its ethanol mandates, fuel companies would still stand to benefit from government incentives under the Volumetric Ethanol Excise Tax Credit, which reimburses companies 45 cents per gallon of ethanol used in gasoline production. Even without the mandates and incentives, biofuels are still far less expensive to manufacture than gasolines based on conventional oil. Fuel companies are unlikely to reduce biofuel production until it become economically prudent. Besides, our world runs on a gas engine, and a rise in fuel prices will also translate to a rise in food prices.
According to the Cattlemen’s Beef Board and the National Cattlemen’s Beef Association, it takes nearly 3.5 gallons of fuel per year to accommodate the growth of one steer. There are also several other fuel costs tied up in the processing and distribution of the beef. Due to an ever-growing global population and a rise in the middle class of developing countries such as China, the demand for beef in the global market is expected to rise significantly by 2013. Although a reduction in biofuel production could help stabilize corn prices, the rise in fuel costs would theoretically raise the cost of processing and distribution for every other food item on the market.
The UN has implored governments to refrain from banning exports, to support small farms, and to reduce biofuel production, but these short-term solutions will only tend to the immediate symptoms of a much greater underlying problem. As the global population soars towards 9 billion people, we have to face the reality that our current food and energy production methods simply aren’t sustainable. In order to feed the growing population, the agriculture industry has had to artificially boost the environment’s capacity to produce food by such methods as diverting water to irrigate normally dry fields and focusing on monoculture--the practice of growing one crop exclusively over a long period of time.
During a press conference in July, government officials reported that severe droughts have affected at least 88% of U.S. corn crops this year. As the U.S is currently the world’s leading producer and exporter of corn, this dramatic shortage in crop production is sure have several far-reaching consequences. While it’s safe to say that the projected food price increases are unlikely to dramatically impact the diets of most U.S. Americans, they will be devastating to the many low income peoples around the world who rely on grain imports for much of their daily sustenance.
In 2008, when droughts caused a shortage of rice and wheat in a similar scenario, the global food market went into chaos as each nation made a move to hoard huge stockpiles of grain in order to secure the needs of their own population. Russia, Ukraine, Argentina, and India halted grain exports, while in impoverished countries, such as Haiti and Egypt, the lower class became outraged and began to protest and riot in response to rising grain prices. Similar tensions are currently building around the globe, and it’s become clear that the pending global food crisis is being driven by more than just a lack of rain.
In accordance with this year’s ethanol mandates, the U.S. will use about 40% of its corn harvest to manufacture biofuels--primarily ethanol (the primary ingredient of which is corn). Considering the rate at which the USDA’s projected crop yield is dwindling, this 40% will be sure to have an enormous impact on the global corn market. However, some experts suggest that halting ethanol production would not be a comprehensive solution. Even if the U.S. were to waive its ethanol mandates, fuel companies would still stand to benefit from government incentives under the Volumetric Ethanol Excise Tax Credit, which reimburses companies 45 cents per gallon of ethanol used in gasoline production. Even without the mandates and incentives, biofuels are still far less expensive to manufacture than gasolines based on conventional oil. Fuel companies are unlikely to reduce biofuel production until it become economically prudent. Besides, our world runs on a gas engine, and a rise in fuel prices will also translate to a rise in food prices.
According to the Cattlemen’s Beef Board and the National Cattlemen’s Beef Association, it takes nearly 3.5 gallons of fuel per year to accommodate the growth of one steer. There are also several other fuel costs tied up in the processing and distribution of the beef. Due to an ever-growing global population and a rise in the middle class of developing countries such as China, the demand for beef in the global market is expected to rise significantly by 2013. Although a reduction in biofuel production could help stabilize corn prices, the rise in fuel costs would theoretically raise the cost of processing and distribution for every other food item on the market.
The UN has implored governments to refrain from banning exports, to support small farms, and to reduce biofuel production, but these short-term solutions will only tend to the immediate symptoms of a much greater underlying problem. As the global population soars towards 9 billion people, we have to face the reality that our current food and energy production methods simply aren’t sustainable. In order to feed the growing population, the agriculture industry has had to artificially boost the environment’s capacity to produce food by such methods as diverting water to irrigate normally dry fields and focusing on monoculture--the practice of growing one crop exclusively over a long period of time.
These practices have allowed food production to expand in the short term, which has in turn facilitated a continuous growth in the global population. It is clear, however, that soon the world’s people must convert to stable, sustainable methods of food production, as well a system of global distribution which focuses on reducing waste and getting that food to the places in the world where it is needed.
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