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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

 

From where I sit, the waving wheat, can sure smell sweet, when the wind comes right behind the rain...What is Budweiser doing with Foreign Wheat?  When you have the means to provide for yourself - grow your own, doesn't it seem ridiculous to outsource.  This Welfare mentality of ... well I qualify, has got to stop.  Gas prices are out of control, Beer is going to increase again.  However, no increase in income.  Do the math.  You can charge whatever you want for a product, you out price yourself and the only thing you'll have is really full warehouses.  Good luck Bud.  I'm gonna miss ya.

To me it sounds like a reason to raise the price of beer when there is really no problem. Everything else is going up on price so why not beer.

The next shoe to drop and to join the recession, high gas & food prices, real estate miseries and bank failures will be the global food famine. Wheat production in the US is being deverted to crops that can be converted to ethenol. This combined with contracted sales of US wheat to other countries will severely short the wheat supplies for usage here at home. A loaf of bread is projected to reach $10.00 in 2008.

We have a family of seven children and can testify to the high prices of flour etc. My wife keeps track of expenditures and can look back to see what we have been paying for food. Since August of 2007, wheat flour has gone up 268%.

With our economy hurting, and inflation knocking at the door...this price hike really hurts. Have you checked out the prices of eggs, meat, etc?

Foreign countries may not be the only ones staging protests...

This is not a surpires! Short supply of oil... price goes up. Short supply of wheat... price goes up. What's next, will have a shortage of air, and then we wont be able to breath! Come on!!

Yeah too bad our BEER prices are going up when these poor people potentially have no food at all and need to riot in order to get what they need. I'd rather seem them not make Budweiser at all and let the people in these countries keep their wheat crop so that they could live off of it.

Just a note here...a shortage of wheat would not cause a rise in the price of Budweiser as it is not brewed with wheat. Budweiser is brewed with rice. More research next time.

www.wheat-free.org/is-budweiser-beer-wheat-free.html

Beer should not be mentioned in an article about wheat unless you are referring to wheat beer which is a very small percentage of all beer consumed. Most beer, especially Bud, is  made from Barley and Corn.

Any more all it takes is for some asian guy to get a pimple on his A$$ 10,000 miles away for prices in the US to go higher!!!! We are all screwed in this global economy.

Most beer is made with malted barley not wheat, and in the US in particular, rice sugars and corn sugars.

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