Chef Dave
05-30-2008, 07:07 PM
I know ... the heading for this thread is very grandiose ... but rising food costs are having a significant impact on the world's economy.
How so?
Let's start with the United States. The U.S. has been very fortunate in past years. Our diverse climatic regions and fertile farmlands have largely kept our food costs down. While Egyptians and Vietnamese spend 40% of their disposable income to purchase food and while Poles have spent 20% of their income on food, Americans have only spent 7.5%.
Higher fuel prices coupled with a drought in Australia and growing prosperity in Southeast Asia have caused the single highest jump in prices seen by the restaurant industry in twenty-five years.
Rice costs almost 10% more than it did a year ago. The cost of white bread is up 16.3%. Eggs are up almost 30%, Milk has risen 13.3% and tomatoes are up 18%.
In today's economy, 1 in 11 Americans are now on food stamps. Ninety-nine percent of all food banks in the United States have also seen an increased demand for assistance. Some food banks have reported a jump as high as 40%.
The price of food has risen to such an extent that many food banks have been unable to supply local demand. Higher transportation costs and rising food prices have reduced donations, forcing food banks to curtail operations and turn away applicants.
In Baton Rouge, Louisiana, public school officials found some students hoarding free and reduced priced meals just so they'll have something to eat at night.
Part of the problem in this country is that the food stamp allowance has not kept pace with rising costs. The average family receiving assistance is no longer able to stretch food stamps through the month. The end result is that meals are being skipped. Soup and milk are being watered down. In some cases, parents are giving their children soda because soda is cheaper.
While visiting a local Federal prison last Wednesday, I had an interesting chat with a paid food service staff member. The Federal prison system currently allocates about $2.80 per day to feed each prisoner. Rising food costs have made it difficult if not impossible to feed prisoners with this budget. Wardens across our nation have been diverting funds from other departments simply to pay for increased food costs.
The situation overseas has become even more acute.
Food costs overseas have risen an average of 80%. The cost of rice if up 141%. The price of wheat is up 130%.
In countries where food costs have always been much higher, shifting prices in the global market have left millions of impoverished people hungry.
For example, in Cambodia, food prices have gone up 76%. Cutbacks in the U.N. World Food Program due to rising prices coupled with a weak U.S. dollar means that 450,000 public school students will no longer receive a free breakfast of steamed rice.
In Africa, where staples like rice, maize, and wheat have always been imported, an estimated 20% of all children are now suffering from malnutrition.
A medium size bag of rice that might cost about $10 in the U.S. costs $34 in Liberia and $47.25 in Nigeria. The cost of rice in these countries is roughly equivalent to the total monthly wages of a common laborer.
The international rice shortage has become so acute that some countries like India have slapped a ban on Basmati rice exports, further contributing to a global shortage.
How can we reverse this problem?
How so?
Let's start with the United States. The U.S. has been very fortunate in past years. Our diverse climatic regions and fertile farmlands have largely kept our food costs down. While Egyptians and Vietnamese spend 40% of their disposable income to purchase food and while Poles have spent 20% of their income on food, Americans have only spent 7.5%.
Higher fuel prices coupled with a drought in Australia and growing prosperity in Southeast Asia have caused the single highest jump in prices seen by the restaurant industry in twenty-five years.
Rice costs almost 10% more than it did a year ago. The cost of white bread is up 16.3%. Eggs are up almost 30%, Milk has risen 13.3% and tomatoes are up 18%.
In today's economy, 1 in 11 Americans are now on food stamps. Ninety-nine percent of all food banks in the United States have also seen an increased demand for assistance. Some food banks have reported a jump as high as 40%.
The price of food has risen to such an extent that many food banks have been unable to supply local demand. Higher transportation costs and rising food prices have reduced donations, forcing food banks to curtail operations and turn away applicants.
In Baton Rouge, Louisiana, public school officials found some students hoarding free and reduced priced meals just so they'll have something to eat at night.
Part of the problem in this country is that the food stamp allowance has not kept pace with rising costs. The average family receiving assistance is no longer able to stretch food stamps through the month. The end result is that meals are being skipped. Soup and milk are being watered down. In some cases, parents are giving their children soda because soda is cheaper.
While visiting a local Federal prison last Wednesday, I had an interesting chat with a paid food service staff member. The Federal prison system currently allocates about $2.80 per day to feed each prisoner. Rising food costs have made it difficult if not impossible to feed prisoners with this budget. Wardens across our nation have been diverting funds from other departments simply to pay for increased food costs.
The situation overseas has become even more acute.
Food costs overseas have risen an average of 80%. The cost of rice if up 141%. The price of wheat is up 130%.
In countries where food costs have always been much higher, shifting prices in the global market have left millions of impoverished people hungry.
For example, in Cambodia, food prices have gone up 76%. Cutbacks in the U.N. World Food Program due to rising prices coupled with a weak U.S. dollar means that 450,000 public school students will no longer receive a free breakfast of steamed rice.
In Africa, where staples like rice, maize, and wheat have always been imported, an estimated 20% of all children are now suffering from malnutrition.
A medium size bag of rice that might cost about $10 in the U.S. costs $34 in Liberia and $47.25 in Nigeria. The cost of rice in these countries is roughly equivalent to the total monthly wages of a common laborer.
The international rice shortage has become so acute that some countries like India have slapped a ban on Basmati rice exports, further contributing to a global shortage.
How can we reverse this problem?