Hunger & Starvation to Visit Humanity
Dr Mark Sircus
October 18, 2010
Do you believe that you will always be able to buy inexpensive food at the supermarket? If so, you might want to think again. During 2010, agricultural commodity prices have exploded. Nearly every single important agricultural commodity is experiencing double-digit percentage price increases. The S&P GSCI Agriculture Index recently surged to a fresh two-year high and now we find that food producers and retailers are starting to pass those commodity price increases on to consumers.
Food inflation is real; it is here and it’s going to hurt a lot of people. In fact, food inflation is hitting consumers hard all over the globe this fall. According to the United Nations, international wheat prices have soared 60 to 80 percent since July. Since the beginning of 2010, the price of bread has gone up 17 percent and the price of meat has gone up 15 percent in European Union countries. The inflation rate in Russia rose to 7 percent in September primarily because of rising food costs.
The New York Times reported, “First it was heat and drought in Russia. Then it was heat and too much rain in parts of the American Corn Belt. Extreme weather this year has sent grain prices soaring, jolting commodities markets, and setting off fears of tight supplies that could eventually hit consumers’ wallets. Grain prices started to shoot up over the summer on reports of a catastrophic drought in the major wheat-producing regions of Russia, Ukraine, and Kazakhstan. Prices rose not only for wheat, but also for corn and soybeans, since those grains are interchangeable as animal feed and a drop in wheat production could mean increased demand for the other grains.”