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New wheat crisis plagues world food supply

Posted Mar 27 2008, 03:46 AM by Jon Markman
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If it seems like you are paying more for your cereal, beer and pizza lately, shake your fist in the direction of Pakistan, Uganda and Argentina, because a weird confluence of international events are combining to slash the world supply of wheat and boost prices. The downside of globalization is that a crop failure 10,000 miles away can lead to pricier brewskis here. 

It's actually a lot more serious than that. The New Scientist magazine reports that a wheat disease that started in central Africa actually threatens to destroy most of the world wheat crop, leaving millions to starve. A fungus called Ug99 has already spread from Africa to Iran and is bearing down on Pakistan, according to the report. This is bad news because Pakistan and Punjab wheat is extremely important to the entire food chain of the densely populous plains of South Asia.

According to reports, scientists hope to slow the spread of Ug99 by spraying new forms of fungicide but the only real firebreak will come when agronomists are able to create Ug99-resistant strains of wheat over the next few years. The disease, which is said to be a super-strong strain of black stem rust, first came to light in Uganda in 1999 and has since ruined crops in Kenya, Ethiopia and Yemen. Now winds are expected to take the spores to Egypt, Turkey, Syria and Iran. Chinese scientists are said to be on a crash program to develop Ug99-resistant wheat strains before the disease ravages its already weakened croplands.

Meanwhile, down in Argentina, a three-week protest by farmers has curtailed shipments of wheat into supermarkets, pushing that country into its worst political crisis since 2002. News media report that thousands of farmers are withholding meat and grains from wholesalers and blocking country roads to oppose a hike in export taxes. Argentina’s president, Cristina Kirchner, has accused farmers of extortion, while protesters fill streets, banging pots and pans.

Food shortages in Buenos Aires are worsening, and the media reports that shops have run out of beef and chicken, while fruits and vegetables are soaring in price. The government is said to be digging in its heels on the tax increases that it believes are necessary to support social programs such as fuel and health care subsidies, while farmers say they are being unfairly targeted. The upshot is that the turmoil has also curtailed exports, putting strains on world wheat prices.

For more on the worldwide food crisis, see my column of March 6, "Could we really run out of food?"

Comments

 

THEY USE ANY EXCUSE TO RAISE PRICES AND TRY TO MAKE US BELIEVE ANYTHING THEY TELL US

Global economy? Hah, Nafta and all similar global trade arrangements are just a race to see which countries people are willing to eat the most dogfood in order to have work. The high grain prices will come down some when energy prices recede. It will take a new government though.

Don't buy pizzas and beer!!! Believe me they will get to all things we use. We need to unveil those oil cartel folks that are causing all this crap. Then we will all know who the rich Americans that are really behind all this bull.

The U.S. Government pays farmers to NOT plant wheat.  We need to lift this plan and let farmers grow enough wheat, corn and rice to meet the demand so prices will not increase.

Yep, its ethanol causing the problem.  sure can't be the cost of oil or the shortage of wheat...

My family farms wheat, and thank god for the increase in the price of wheat. Wheat prices stayed around $3-4 a bushel for decades! I also know some brewers. The real correlation between wheat troubles in other parts of the world and beer prices going up here is the fact that due to increasing prices in staple grains such as wheat, and the profitability of subsidized corn for ethanol, is that less farmland is dedicated to the growing of barley and especially hops. I think hops prices have doubled recently. John gave some great info in his article, but failed to come full circle with the Bud Light/Pakistan wheat fields analogy, as Jeff points out. I also like Allison's point about us beginning to see the true costs of our ethanol experiments and how none of our mainstream media seem to be able to make such an obvious connection.

The price of Bud has nothing to do with wheat. Jeff Mertz is right, they use barley to make most beers. Bud also uses a bit of rice. Wheat beers use more barley than wheat. There is, however, a worldwide shortage of another key ingredient in beer. The price of hops has more than doubled since last fall.

This is all planned. The fungus is put there to starve us. Honey bees are dying from the GMO crops. The bird flu is killing the livestock. NWO style. Check out the Georgia guide stones.

Of course they need to raise the price...I mean they probably weren't making any kind of profit before (heh heh).

Just another lie to raise prices..we are strong here in the US for growing our own wheat

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