World Teetering on Brink of Global Food Crisis
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The International Food Policy Research has warned that the world is teetering close to the brink of a global food crisis as a drought ravages corn corps in the United States, the world’s largest grower.
Speaking at an interview with Bloomberg TV, director-general of the Institute Fan Shenggen urged US policymakers to abandon its biofuel programme.
The International Food Policy Research has warned that the world is teetering close to the brink of a global food crisis as a drought ravages corn corps in the United States, the world’s largest grower.
Speaking at an interview with Bloomberg TV, director-general of the Institute Fan Shenggen urged US policymakers to abandon its biofuel programme.
Under the Renewable Fuels Standard, US fuel companies are required to ensure that 9 percent of their gasoline pools are made up of ethanol this year, which effectively means converting almost 40 percent of the nation’s corn crop into biofuels.
Fan said:
[quote] The major problem is policy. Biofuel production has to be stopped. That actually pushed global food prices higher and many poor people, particularly women and children, have suffered. [/quote]
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The price of corn, an ingredient for most foods and livestock feed, has surged 57 percent since June 15, breaking the record levels of the 2007/08 food crisis when food riots broke out in 30 countries.
According to a separate report by Bloomberg, members of the Group of 20 nations, led by the United States and France, are prepared to hold an emergency meeting to address the soaring agri-commodity prices.
Citing an unnamed French Agriculture Ministry official, US and French officials are considering a conference call in the last week of August, while a meeting of the Rapid Response Forum could take place as early as the first week of September. The forum was set up last year to avoid a repeat of trade restrictions that sparked the recent food crisis.
However, not many are convinced by the clout of the G20 and efficacy of such meetings.
Simon Evenett, a former World Bank official who is now professor of international trade and economic development at the University of St. Gallen, told Reuters:
[quote] With a string of broken promises on protectionism, no serious enforcement, monitoring well after the horse has bolted, and a tendency to pull their punches, any G20 promises on food trade won’t be taken seriously – by the G20 themselves or by anyone else. [/quote]
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