The world is experiencing a widespread price hike in food, a problem that has been jeopardising political stability in many countries, mainly developing ones. As Europeans and as a part of the European Union we have the responsibility to act now so as to avoid having more disastrous effects and to ensure that there will be no danger of famine.
Since the beginning of this year we have experienced a rise in the price of cereals of almost 250 per cent on average and with the demand always on the increase we have at hand a situation that needs urgent attention before it blows out of proportion. We have to understand that the era of food at low prices is past and we have to gear ourselves to face a new reality.
The food shortage has been recently described by the head of the UN world food programme as being the Silent Tsunami which knows no borders and is sweeping the world and this is indeed very true. This phenomenon has hit us with little or no warning and has added an extra 100 million people to the poverty list.
High prices of fuel and bad weather in producing countries have been two determining factors for this price hike but other factors such as the increase in demand from rising middle classes in the new emerging world economies like China (population one billion) and India (population 800 million) have also been factors that one cannot ignore. It is obvious that rich people eat more than poor people and all this economic growth is generating a whole new class of consumers who buy more meat and processed food.
To make matters worse, once the prices go up, people panic and start hoarding, speculators try to make the best of the situation so as to make astronomical profits and food producing countries start imposing restrictions to ensure that there is enough food for its citizens. This leads to a situation where there is less food available to countries.
We went through a 30-year era where the prices of staple food actually went down and this gave no reason for any country to stock up. With this period of stability now behind us we have to act quickly to avoid shortages as the market indicators do not envisage a stable situation in the near future. Despite a favourable global production outlook, the expected price decline in many basic agricultural commodities during the new 2008/2009 season is likely to be limited, because of the need to replenish stocks and an increase in utilisation.
Due to rising utilisation, more than one good season is required to replenish stocks and reduce price volatility. As always, the poorer countries are those that suffer most and many developing countries are bound to miss their poverty targets.
We have been constantly loading our planet with pressure and I think we have arrived at a stage where we have almost reached saturation point.
The effects of climate change are tangible even more than ever now and the increase in the world population gives us yet another reason to be wary.
As a European Union, I believe that more important than aiding the countries that have been most badly affected, we have to embark on an ambitious project of aid in the form of education and training so that these countries will be able to grow their own food in an efficient manner. This obviously in parallel to the financial aid we have to give these countries to stave off famine.
We need to ensure better methods to protect resources and introduce better farming practices, such as starting to produce food locally with more natural and ecological farming techniques so as to be less dependent on fossil fuels.
In having said all this, we have to stress the importance of a more transparent market and to cut down on speculation from people that have no other particular interest in the situation than to become rich. We also need to analyse seriously the biofuel matter and try and strike a balance before it is too late.
As always in this ever-changing world we have to be ready for challenges. We have to cooperate with each other for the good of all. We are blessed to be living in a part of the world where these shortages do not effect us directly in the sense of poverty but we must however be cautious and aware because the silent tsunami does not send any pre warning on when it is going to strike.
David Casa is a Nationalist MEP
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www.davidcasa.eu