Human diet is a luxury to people

2007 and 2008 was an unprecedented rise in food prices, causing political and economic instability and social unrest, especially in poor countries. From March 2007 until March 2008, the world price of rice has increased by 74%, wheat by 130% by 31% in corn and soybeans by 87%.
The forecast is bleak for the next ten years, as a further increase in price and 50%, according to the report «Agricultural Outlook 2008-2017», OECD together the Food and Agriculture Organization.

Estimates for the state prices (average nominal price of goods in the period 2008-2017 compared to the period 1998-2007)

- 20% for beef and pork

- 30% increase in sugar

- An increase of 30% for rice

- 40% to 50% for wheat, corn and milk powder

- Increase of 60% for butter and oil seed production

-increase of 80% or more for vegetable oils

Causes

The cause of the global increase in prices is the focus of discussions. A key cause is the drought that occurred in 2006, rising oil prices and the fall in global stocks of food.



Others talked causes is the use of biofuels, increased meat consumption in Asian countries, climate change and speculation on commodity markets.

In China in 1980, per capita meat consumption was 20 kg, while in 2007 almost 50 pounds. It should be noted that to produce 1 kg of wheat needed 1000-2000 liters, while the production of 1 kg of veal 10000-13000 liters needed.

Figurine in biofuels and oil

Big is the dilemma about the risk that may cause the viokalliergeies the food supply, as production has increased in recent years, resulting in fewer areas of crops intended for food. Some goods such as corn, sugar cane or vegetable oils can be used either for food or to produce biofuels.

For example, since 2006, the United States large areas grown for biofuels, with corn for ethanol production, reaching 25% in 2007. An estimated 100 million tonnes of wheat annually converted from food to fuel. Noted that total world cereal production for 2007 was at 2000 million tonnes. Farmers are engaged in production for biofuels leading to less available food especially in developing than in developed countries.

Furthermore, the doubling of oil prices from 2007 until now affects consumers around the world, who, according to GoldmaSachs are burdened with 1.8 trillion. dollars.

The rise in oil prices has increased the cost of fertilizer (in some cases doubling them up), and transport. Although the main ingredients of fertilizer is natural gas and hydrogen have similar problems to those of oil. Because natural gas is a substitute for oil by increasing the price of crude rises too.

Speculation

The credit and housing crisis caused by global economic turmoil had effects and property. The speculation in the futures of goods has contributed to the crisis, as many investors «attracted» billion from equities and bonds and put on the market goods.

The big losers-effects that poor countries

According to the World Bank the dramatic increase in prices of food have a large impact on society, and poverty will increase by 4.5% and already 2.3 billion poor of the world added 105 million others. Noted that poor, based on research, it is consuming less than $ 1 a day.

The incomes of rural households, which often belong to poorer households in each country, can lead to price increases.

Also, according to the Food and Agriculture Organization and the OECD people facing hunger and malnutrition in poor countries will be millions more. The impact on retail food prices from country to country and from region to region varies with trade laws, taxes, the level of development and transport infrastructure, but is generally higher in poor countries and regions