Food and its production have been a perennial concern for mankind since the dawn of time. Our main sources of food are derived primarily from the land but of all the world’s land mass, a mere 18 per cent is used for agricultural purposes. As this fraction cannot be substantially increased, it is crucial that the yield per unit of land has to increase in step with the population explosion evidenced in the last one hundred years.

World population has grown from 1.6 billion in 1900 to a present estimate of 6.8 billion people and this number will steadily grow to reach nine billion by 2040. As more land is gobbled up by the growth of cities and other non-agricultural use (70,000 square kilometres a year), the need for more sophisticated and advanced methodologies of food production becomes evident and obvious. Beyond the mechanical and technological aspects in the mass industrialisation of food making, science is increasingly pushing the frontiers in squeezing the last ounce out of each crop to sustain an ever-growing demand for food for both human consumption and animal feed. Incidentally, it takes seven kilogrammes of feed grain to produce a single kilogramme of beef.

Alas, there is now a new paradigm. The prices of commodities, food and energy are continuously rising and this is having a significant impact not only on our incomes but also ultimately on how the future of international relations is shaped. All the latter assets are so closely interlinked that when there is a significant price increase in one group, it is more than probable that the rest will follow. The vagaries of international markets are well known and the effects of their actions are there us all to see. The present challenge is that these prices are rising too quickly for comfort.

With populations growing (a total number equivalent to the population of Germany is added every single year), demand growing and the inexorable rise in major commodities, the surge in prices has significant implications. Consider that, for example, potash, a principle fertiliser is estimated to increase in price to the tune of 50 per cent. The surge in demand for oil and higher oil prices has, in the case of Malta, increased the price of fuel by 20 per cent in a year. The cost of all the necessities, from sugar to cotton to wheat, is at record highs due either to poor harvests and\or an unquenchable demand from developing nations. All this has dramatic effects, especially on lower income groups.

These price rises are not new. Between 2006 and 2008, average world prices for rice rose by 217 per cent. Wheat increased by 136 per cent and soybeans by 107 per cent. What is new is that many countries are at the moment still nursing the effects of the financial crisis. Austerity measures, coupled with subdued economic prosperity, can ill afford to cushion these rises by higher salaries. In most developed nations the time for raising wages is clearly inopportune. And hence the quandary! At this rate there are no two ways about it: unless wages rise, our purchasing power is effectively diminished.

Clearly there are no obvious solutions at hand. Some will inevitably blame the situation on financial speculation. In a sense this may be true – mankind’s ability to gravitate towards greed is well documented. Yet at the same time, the realities of supply and demand will inevitably raise prices, whether we like it or not. Can governments single-handedly harness these increases? Experts say that this is highly unlikely without shaking the delicate economic foundations of a country. Governments, trade unions and businesses must inevitably work together to achieve some sense of stability. These are indeed interesting times!

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