While food production is forecast to increase, demand will increase even faster due to rising wealth levels in developing countries. Rising incomes lead to larger amounts of meat included in diets, and meat is far more intensive of a food source to product than simple things such as rice or wheat.
You may have heard of this scenario years ago, before the crisis and when commodities were in a super-spike. Well, the thesis still holds, even after the crisis. Moreover, we won't have to wait until 2020 to see the price hikes. The process is already kicking off. The report forecasts that global prices next year for many animal-related foods will be 10 - 20% higher than in 2009.
Parts of the economy could still be deflating by then, but many foods won't be:
Shit my rice cache' is going down.
ReplyDeleteYou're hungry you say? Don't worry, the FEMA Camp has plenty of food available! Three squares a day! Just wait in that line over there please- the next train is about to pull up and there are plenty of cattle cars to accomaoate everyone....no tickets required!
ReplyDeleteAll aboard!!!
I'm hungry but have no money for food.
ReplyDeleteI understand that nutritionists have just developed a marvelous new food staple called 'Soylent Green' to solve the hunger problem forever. Just stop by your nearest FEMA Camp for free samples. Delicious, nutritous, inexpensive, and a never-ending supply!
ReplyDeleteWish I could buy you a sandwich, 11:38am.
ReplyDeleteI know what real hunger is, having done my 40 days.
1138 just dont steal, the govt hates competition
ReplyDeleteRising wealth levels in developing countries?
ReplyDeleteNot quite. There are no countries gaining wealth right now, this guy sounds like he got his information from the New York Times.
The hell is it with people like that, they somehow think lesser countries are going to prosper because we are going to be destroyed. They will be in a worse position. Our wealth sinks - that means theirs does.
Hungry....grow some veggies...build some plant boxes...shouldn't cost that much for a pack of seeds.
ReplyDeleteOh hungry? Oh Henry. Creamy caramel. Crunchy peanuts covered in savory chocolate. Hungry? Grab a snickers.
ReplyDelete