Tuesday, May 13, 2008
Why the world can't afford food
There isn’t just one reason food prices are rising it’s actually a number of factors. One reason is poor harvests and restrictive trade policies. There has been droughts and bad weather that affects a lot of exporting regions. Since stocks have lowered some countries put export restrictions just to protect their countries supplies. The 2nd factor is increasing oil prices. The reason this has to do with food is when oil goes up the cost of running a farm goes up and we get most of our food from farms. The 3rd factor is Diversion of crops for biofuels. Since the price of oil is going up people are trying to find a alternative, aka biofuels. This is made from corn or other farm plants. The last factor is increasing demand, especially in China. The people in China and India are buying more expensive food like fruit and meat and less of rice. The price of food is not expected to go down anytime soon.
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