Food riots of the 21st century            Jonathan Watts                  
06 January 2008 11:59                    DisplayDCAd('220x240','1','');      
  The risks of food riots and malnutrition will surge in the next two years as 
the global supply of grain comes under more pressure than at any time in 50 
years, according to one of the world’s leading agricultural researchers.

Recent pasta protests in Italy, tortilla rallies in Mexico and onion 
demonstrations in India are just the start of the social instability to come 
unless there is a fundamental shift to boost production of staple foods, warned 
Joachim von Braun, the head of the International Food Policy Research Institute.

The growing appetite of China and other fast-developing nations has combined 
with the expansion of biofuel programmes in the United States and Europe to 
transform the global food situation.

After decades of expanding crop yields and falling food prices, the past year 
has seen a sharp rise in the cost of wheat, rice, corn, soya and dairy products.

“Demand is running away. The world has been consuming more than it produces for 
five years now. Stocks of grain and of rice, wheat and maize are down at levels 
not seen since the early 1980s,” said Von Braun, whose organisation is the 
world’s largest alliance of agricultural researchers, economists and policy 
experts.

So far, crises have been averted because states have eaten into national 
stocks, but this could be set to change because China, in particular, has run 
down its supplies.

“Over the next 12 to 24 months we are in a fairly risky situation. Large 
consuming nations, particularly China, will feel pressed to enter international 
markets to bid up prices to unusual levels,” Von Braun warned ahead of a speech 
to the institute’s AGM in Beijing.

Thanks to its manufacturing prowess China has huge foreign exchange reserves 
and could buy the global food crop several times over. But its consumers are 
already feeling the cost of food inflation. According to the local media three 
shoppers died last month in a stampede at a supermarket in Chongqing that was 
offering cheap rapeseed oil. The threat of instability has prompted Prime 
Minister Wen Jiabao to make the fight against food price rises one of his 
government’s priorities. So far it seems a losing battle.

Economic growth -- estimated at 11,5% in the first nine months of the year -- 
has made Chinese consumers wealthier, while urbanisation and globalisation has 
changed their diet. In October the government announced pork prices were up 
more than 50%, vegetables 30% and cooking oil 34% compared with the year before.

The knock-on is felt across the world. In rich nations it means a few more 
cents for breakfast cereal in the short term and a slightly higher cost for 
toys, clothes and other Chinese goods. But for the world’s poorest communities 
the rises will have a potentially devastating effect.

Bangladesh has had to ask for half a million tons of food aid -- a severe blow 
to the pride of a country that had been trying to wean itself off international 
assistance. Bangladeshi officials say the price of cooking oil, of which it 
imports 1,2-million tons a year, has almost tripled in the past two years 
because it is now valued as an alternative to diesel oil. More worryingly, 
their main staple of rice is hard to buy at any price because India, Vietnam 
and Ukraine have cut exports.

Added to this are the pressures caused by global warming, which have been 
blamed for the droughts that damaged crops in Australia this year.

The social tensions caused by rising food prices are already evident, says Von 
Braun. “The first sign was the tortilla riot in Mexico city, where 70 000 took 
to the streets. I think that was only the beginning -- there will be more,” 
said Von Braun.

“For a year or two countries can stabilise with stocks. But the risk comes in 
the next 12 to 24 months. The countries that cannot afford to buy will be the 
losers, while those with huge foreign exchange reserves will bid up the world 
market.”

Von Braun called on Europe to reconsider its biofuel policies, to provide more 
aid to poor nations, to keep markets open and to boost production. -- © 
Guardian News & Media Ltd 2007
http://www.mg.co.za/articlePage.aspx?area=/insight/insight__international/&articleId=328941
       
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