Tuesday, June 8, 2010

FOOD POLICY, NOT FOOD PRODUCTION, CAUSES WORLD HUNGER

Assuming most of you are corn farmers or have an interest in producing corn, it’s no secret that corn prices are significantly lower than the high we saw in 2008. In fact, right now, corn is barely $3 when 2008 prices were $7.

Other prices were high in 2008 – wheat was around $6.50 when it’s now $4.30. Freight was extremely high compared to what we see today.

Yet, according to this article, food costs are so extremely high that poorer countries have hungry citizens in droves.

“With food costing up to 70 percent of family income in the poorest countries, rising prices are squeezing household budgets and threatening to worsen malnutrition, while inflation stays moderate in the United States and Europe,” Joe McDonald, author, says.

We need to fix world trade. Market distortions obviously exist that prevent food from flowing into regions of the world when it makes economic sense. We have corn in the US. In fact, carryout of world grains are steadily increasing, so I see little reason for the bag of flour to cost three times what it did two years ago, as a Pakistani mother of five mentions in the article.

In addition, media and humanitarian efforts are consistently calling on corn farmers for increased productivity even as the elitists in the US pursue policies that will stagnate productivity or even cause it to decline. Obviously these people need food and a food policy that focuses around lower productivity doesn’t make sense.

The food is there and it’s less expensive than it has been in recent times, but due to artificial trade barriers, and to some extent the overall economy, the people who need the food can’t get the food.

Prices, policies, and productivity – they are things we seriously need to consider if we are to tackle the growing world hunger problem.

Rodney M. Weinzierl, Executive Director,
ICGA/ICMB

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