Germane to our discussion of food economics last class and to our discussion of food justice today, Grist published an article today on the causes and effects of the rise in food prices. As we already discussed, the rise in food prices hurts low income consumers most because we/they spend a higher percentage of our/their income on food. There is significant disagreement on the causes of rising food prices, however. Most agree that yields are not rising enough to outpace population growth, but there are also arguments that point to food speculation, the rise of meat consumption in China, bad weather, the growth in biofuels, and rising energy (petroleum) costs. Certainly all of these factors are contributors, but which ones we privilege has consequences for the policies we design to address rising food prices.
http://grist.org/food/why-food-prices-scaled-the-peaks-and-why-it-matters/
Thank you for sharing this insightful article on the causes and effects of rising food prices, which closely relates to our recent discussions on food economics and food justice. Just as the price of a classic Kaya Toast with Peanut might impact the affordability for different consumers, understanding the multifaceted reasons behind food price increases is crucial. It underscores the importance of addressing these issues comprehensively, as the factors such as food speculation, meat consumption trends in China, climate-related challenges, biofuel production, and petroleum costs all play a significant role. The choices we make in prioritizing these factors will inevitably influence the policies we craft to mitigate the impact of rising food prices on various communities.
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I really enjoyed Johnson’s article and I agree with his main thesis. While many economists will argue about the main reason food prices have increased in recent years, there are (and always will be) a wide plethora of factors that influence the cost of food. It is true that many Asian countries (such as China) have begun to consume more meat products. Such an increase in meat consumption can undoubtedly affect food prices as farm-grown grains must be used to feed the extra livestock. If more grains are being used in livestock production, fewer grains are leftover for direct human consumption–thus decreasing the amount of food available and causing prices to rise. Another point that Johnson made that really stuck out to me was the large increase in fuel prices. In the modern-day agricultural world, many foods are trucked, flown, or shipped around the globe. Such processes are not cheap as natural fuel becomes more and more scarce. With increasing shipment prices, it only makes sense that the price of our food increases as well.