Harsh Times – A New Normal
By Richard Mills
As a general rule, the most successful man in life is the man who has the best information
The approaching storm I wrote about in last year’s article The Rising Cost of Survival has certainly struck many countries with a vengeance. I thought it would be an appropriate time to revisit.
In 2008, a spike in food prices resulted in food riots around the world. The recession brought prices down while record crops allowed some stockpiles to be rebuilt and gave us a respite from the turmoil.
Unfortunately 2010 was a disaster for crops and their stockpiles. Severe droughts, record heat waves and fires combined with floods to cut crop outputs and global grain stockpiles, at the end of the 2010/11 season, were at a three-year low of 341 million tonnes.
By the end of 2010 the global price of food had hit a new record high – the UN’s Food and Agriculture Organization’s (FAO) index of 55 food commodities hit 214.7 points – the previous high was 213.5 in June 2008.