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When food shortages reach a tipping point

Today the world bank Wal-Mart/Sam’s Club announced that they will start “rationing” rice sales at their stores putting a limit of 4 bags per person (Looks like Costco is following suit). Why are they doing this and why here in the U.S. is this being done. Simple really, rice and grains are commodities and are bought and sold on the world market to the highest bidder. So what are the real world issues causing this to happen?

  • Global recession
  • Rising fuel costs
  • Food stocks being grown to produce ethanol
  • Global population growth
  • Genetically engineered seed stock
  • Corporate and political greed

Well, most seem like legitimate reasons for food prices to go up and supplies to be limited but lets dig a bit deeper. If micro/macro economics taught me anything it is that supply and demand has the biggest cause and effect on the prices of goods.

/start rant

I have a simple solution to food/energy costs: Require the people that buy commodities to actually have to take possession of what they purchase. You want to buy 10 barrels of oil at 110.00 a barrel fine, when can you pick it up?

Mr. Jones, thank you for your pork futures order. Your kids are tending to them

This would immediately end all of the “jump on the bandwagon” investors as well as the price fixing and hording. Yes, I know it is not the perfect solution but it is a start. /end rant

With a global recession coupled with the “false hopes” of ethanol and rising gas prices it was just a matter of time before it his us here in the states. The real question is not whether we have or will have a serious food crisis but when and where will it take place. Wal-Mart is doing it’s best to speed the process along by “rationing” rice sales to 4 bags. What the news media isn’t telling you is that the 4 bags that you are limited to are 20 lb. bags and that the biggest consumers of the rice are small restaurants that can get it there cheaper than they can from Sysco or any other food distributor.

The media and Wal-Mart want you to believe that there is a shortage of rice here in the U.S. so that you run out when you get off work and buy, buy, buy. If Wal-Mart really was concerned about rice supplies then they would not be announcing it and leaving out important facts like the limit is 4 bags=80 lbs of rice. They are perpetuating a false supply/demand issue strictly for the sake of profit and not for the sake of ensuring food supplies will be available to everyone.

So what is the real deal with all of this? Yes, food shortages are a concern around the world but not here in the U.S. as well as most industrialized countries. This does not mean we shouldn’t be concerned or try to make changes in the way we think.

Concerns:

Meat products take 14 times as much grain to produce as vegetable products do as well as an average of 150 gallons of fossil fuel per year per person. This does not take in to consideration the amount of water and chemicals (antibiotics, de-wormers, growth hormones) that meat products take to produce. So, what can we do to change this?

Purchase more products that are produced locally. Check farmers markets and co-op’s for locally produced goods that do not need to be shipped long distances. Always buy vegetables and fruits that are fresh according to the local season and TRY to substitute some meat products with legumes and other forms of protein.

Grow your own! My wife and I produce about 85% of our produce and we have no yard as we live in a loft in a warehouse. Sprouts are a great source of protein and contain all of the essential vitamins and minerals you need to live a healthy life.

Reduce the fossil fuels that you consume. I know this is a tough one but it has a DIRECT effect on the cost of the goods we buy. Take public transportation, hop on a bike for your shopping and most importantly plan your trips when you do have to drive. We had 4 vehicles this time last year, now we have 1 and put less than 50 miles a month on it. This has been difficult for us but less that 1 year later our lives have not changed that much and we have shaved $250.00 a month in fuel, maintenance and insurance.

Fun Fact: If the world were to have the eating habits that the U.S. does fossil fuels around the world would be exhausted in 10 years.

A simple man yearning for change

Links to recent reports of food shortages and riots:

*** SIDE NOTE ***

I am not bashing Hillary people, all 3 canidates are up there. The reason Hillary is in the middle is because she is the one that set policy for a lot of what is going on today at Wally World. All 3 of the canidates need to address this and many other issues that they feel aren’t important, I think the question and answers given during recent debates should sum up what I am trying to say. To make all of you feel better (the ones bombarding me via email) I am announcing whom I will be voting for…… None of the above.

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1 Comment

  1. April 24th, 2008

    | 12:28 pm

    [...] A Simple Man wrote an interesting post today on When food shortages reach a tipping pointHere’s a quick excerptToday the world bank Wal-Mart/Sam’s Club announced that they will start “rationing” rice sales at their stores putting a limit of 4 bags per person. Why are they doing this and why here in the US is this being done. … [...]

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