Drought, ethanol, fuel costs contribute to rising global food prices and unrest
BY: RHONDA PARKER
AUGUST 9, 2012
The sudden, sharp increase in global food prices in today’s monthly report on global food prices by the United Nation’s Food and Agriculture Organization (FAO) shows a sharp, sudden rise in food prices for July, experts are placing the blame in part on the worst drought in the United States midsection in half-a-century.
A Bloomberg report from April had predicted the crop decline this year and raised the alarm as drought parches fields not just in the US, but across three continents. The Bloomberg report said the global drought conditions for a third straight year have raised food-import costs already forecast by the UN to reach a near-record $1.24 trillion.