In the recently held World Food Crisis Summit in Rome, UN FAO Director General Jacques Diouf pointed out several factors that contribute to the food crisis: ” . . . the restrictive measures taken by producing countries to meet the needs of their populations, the impact of climate change and speculation on futures markets will place the world in a dangerous situation . . . whatever the extent of their financial reserves, some countries might not find food to buy.”
He called for “innovative and imaginative solutions”, including “partnership agreements … between countries that have financial resources, management capabilities and …read more

At the start of the three-day World Food Crisis Summit in Rome (3 June 2008), UN Food & Agriculture Organization Director General Jacques Diouf, noting that $ 1,200 billion were spent on arms in 2006, asked the delegates: ” . . . how can we explain to people of good sense and good faith that it was not possible to find US$30 billion a year to enable 862 million hungry people to enjoy the most fundamental of human rights: the right to food and thus the right to life?”
The 2008 Philippine National Budget is about $30.3 billion, 0.1% of …read more

Experts predict a food crisis in the near term. In developed economies, it is still just a more than usual increase in food prices. There are shortages in some countries. In others, there are food riots.
A ProForma Balance Sheet shows how the food crisis has developed:

In 2000 at the United Nations Millennium Summit, 189 nations signed a Millennium Declaration which sets forth 8 development goals to be achieved by 2015.

Source: http://www.undp.org/mdg/basics.shtml
Three of the Millennium Development Goals, with their focus on poverty, environmental sustainability, and global cooperative effort, address the food crisis directly. As the Millennium …read more

Economics came to be called the dismal science because of Thomas Malthus who observed that population growth was several times faster than food production and would lead to starvation and wars.

Recently, Thailand and Vietnam –rice producing countries from which the Philippines (one of the countries in Southeast Asia with the highest population growth rate) imports most of its rice to augment deficits in its rice stocks– declared a cutback in its exports of rice to keep food at home.

Is Malthus being proven right?
Balance Sheet graphics by Ren Garcia / images from Microsoft Clipart

While Adam Smith introduced the invisible hand to economics, Thomas Malthus caused economics to be called the dismal science. Malthus observed that population was growing at a rate several times faster than food production, eventually leading to starvation and wars.
The World Grains Production Balance Sheet shows that there might be some truth in Malthus’ prediction:

Experts predict a food crisis in the near term. In developed economies, it is still just a more than usual increase in food prices. There are shortages in some countries. In others, there are food riots.

Can the balance be sustained?
Balance Sheet graphics …read more

Experts predict a food crisis in the near term. In developed economies, it is still just a more than usual increase in food prices. There are shortages in some countries. In others, there are food riots.
What are the LIABILITIES in the Balance Sheet of World Grains Production that has led to this situation?

In addition to inadequate increases in land areas devoted to grains production (with the conversions / diversions of land use to meat & dairy and biofuels, and residential developments), there are the changing weather patterns and droughts in rice & corn producing areas –probably …read more

Experts predict a food crisis in the near term. In developed economies, it is still just a more than usual increase in food prices. There are shortages in some countries. In others, there are food riots.
What are the LIABILITIES in the Balance Sheet of World Grains Production that has led to this situation?
Overall, there have been no increases in agricultural lands to keep pace with population growth and its impact on demand for food.

In addition to the increased land use for meat & dairy (which require more land than grains), rice and corn lands have been converted …read more

Experts predict a food crisis in the near term. In developed economies, it is still just a more than usual increase in food prices. There are shortages in some countries. In others, there are food riots.
What are the LIABILITIES in the Balance Sheet of World Grains Production that has led to this situation?

Overall, there have been no increases in agricultural lands to keep pace with population growth and its impact on demand for food.

More land is being devoted to meat & dairy products as a result of the growing demand from emerging economies with higher personal disposable …read more

Experts predict a food crisis in the near term. In developed economies, it is still just a more than usual increase in food prices. There are shortages in some countries. In others, there are food riots.
A ProForma Balance Sheet can show how the food crisis has developed:

On the ASSETS side, Demand has grown both as a result of population growth and the increasing personal disposable incomes and purchasing power in emerging economies (China, India, Thailand, Vietnam, etc).
While technology has improved yields per hectare of land planted to wheat, corn & rice (i.e., discoveries of high yielding varieties …read more

The worldwide results are increases in wheat / corn / rice prices, shortages, hoarding,
food riots in some areas. The UN has reported a 35% in global average grain prices from last year, 65% from 2002.
Data from Philippine Daily Inquirer: “Tensions Rise as World Faces Food Crisis” (1 April) &
“Hungry Crowds Spell Trouble for World Leaders” (2 April)
graphics by Ren Garcia