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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

 

While the wheat crisis in the middle east is certainly a major problem for food production, it has zero to do with the price of a beer in the US since over 95% of beer consumed here is brewed from barley not wheat.  Having been in the beer industry for the past 22 years the deciding factor for higher prices does not necessarily come from the barley producers since domestic mega brewers have long term contracts with these producers and actually own their own malting plants across the country.  The issue usually stems from higher cost of goods for things such as hops, glass, aluminum, energy, and let us not forget marketing expenses.  You may want to check your facts a little before making these types of assertions.  By the way it's Bud Light, not Bud Lite, the folks over at Miller Brewing Company still have a trademark on "Lite" and don't take kindly to that mistake, for that matter neither does Anheuser Busch.

Quit using food for fuel.

Although the wheat shortage is clearly a problem, the beer prices going up may have more to do with the ongoing hop and barley shortage.

why dont we grow more wheat? Maybe if we stopped paying corp's to not grow  wheat , corn , soybeans we would have enough and save the money we're paying them not to grow. That way we'd have more and beer and other things would be cheper. Opps I forgot damn lobyists run this country for the big boys, they buy votes to keep the middle class down . maybe they should have an open season on lobyists like they have for deer.

Their is a shortage of wheat here in America because the government has mandated ethanol, which has spiked the production of corn. Ethanol is is absolutley riduculas and has caused the price of gas to go up not down and has increased the price of grain so so all dairy products have have sharply increased in price as well.

I can remember a quote from Mother Eath news back in the early 70,s  "No matter how sophisticated mankind becomes, he still exists because of the fact that there is 6 inches of topsoil, 1 mile of atmosphere and the fact that it rains"    We live in a fragile enviroment, one that we are abusing.

This is ridiculous, completely ridiculous.  None of this would be happening if companies would base their prices on true supply and demand, instead of the commodity futures markets.  The oil companies started it all.  Hershey jumped on board, raising their prices because the cocao markets went up (this is in addition to moving to Mexico to lower production costs).  Now it's Anheuser Busch with wheat.  It's time for consumers to fight back by spending wiser and spending less.  Let these companies' inventories sit around collecting dust - that will bring prices back down in no time.

um, barley and hops make up less than 1% of the cost of beer.

I am not surprised, Mr.Bush needs to spend more time getting advise on how to stave of a possible food crises instead of bailing out billonaires who lost big with Bear-Sterns. Americans are hurting right now with the high cost of food and gas prices. The Scientist are doing thier research tirelessly trying to find soultions to the ills that plauge our crops, Mr. Bush should spend more time and money supporting that community. I know americans love thier beer maybe they will be civic minded and write their congressman and see what they can do to keep the cost of beer down so all of you beer drinkers this buds for you.

This is actually a result of high gas prices! The Bush energy crisis is the original domino. This has led to all of the other higher prices as a result. The mortgage crisis is also a result of taking thousands of dollars a year from every american family while the Bush oil cartel reaps BIG profits. Everytime the gas prices got high the previous presidents releaed oil from the strategic reserves and it kept the price in check. Bush won't do this as it will hurt his oil profits for all of his family and friends. The price has gotten a little too far out of hand.

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