Showing posts with label Grain. Show all posts
Showing posts with label Grain. Show all posts

Monday, 28 April 2008

Why Food Prices Will Go Through the Roof in the Coming Months

A deadly fungus, known as Ug99, which kills wheat, has likely spread to Pakistan from Africa according to reports. If true, that threatens the vital Asian Bread Basket including the Punjab region. The spread of the deadly virus, stem rust, against which an effective fungicide does not exist, comes as world grain stocks reach the lowest in four decades and government subsidized bio-ethanol production, especially in the USA, Brazil and EU are taking land out of food production at alarming rates. The deadly fungus is being used by Monsanto and the US Government to spread patented GMO seeds.

Stem rust is the worst of three rusts that afflict wheat plants. The fungus grows primarily in the stems, plugging the vascular system so carbohydrates can't get from the leaves to the grain, which shrivels. Ug99 is a race of stem rust that blocks the vascular tissues in cereal grains including wheat, oats and barley. Unlike other rusts that may reduce crop yields, Ug99-infected plants may suffer up to 100 percent loss.

In the 1950s, the last major outbreak destroyed 40% of the spring wheat crop in North America. At that time governments started a major effort to breed resistant wheat plants, led by Norman Borlaug of the Rockefeller Foundation. That was the misnamed Green Revolution. The result today is far fewer varieties of wheat that might resist such a new fungus outbreak.

The first strains of Ug99 were detected in 1999 in Uganda. It spread to Kenya by 2001, to Ethiopia by 2003 and to Yemen when the cyclone Gonu spread its spores in 2007. Now the deadly fungus has been found in Iran and according to British scientists may already be as far as Pakistan.

Pakistan and India account for 20 percent of the annual world wheat production. It is possible as the fungus spreads that large movements could take place almost overnight if certain wind conditions prevail at the right time. In 2007 a three-day wind event recorded by Mexico’s CIMMYT (International Maize and Wheat Improvement Center), had strong wind currents moving from Yemen, where Ug99 is present, across Pakistan and India, going all the way to China. CIMMYT estimates that from two-thirds to three-quarters of the wheat now planted in India and Pakistan are highly susceptible to this new strain of stem rust. One billion people who live in this region and they are highly dependent on wheat for their food supply

These are all areas where the agricultural infrastructure to contain such problems is either extremely weak or non-existent. It threatens to spread into other wheat producing regions of Asia and eventually the entire world if not checked.

FAO World Grain Forecast

The 2007 World Agriculture Forecast of the United Nations’ Food and Agriculture Organization (FAO) in Rome, projects an alarming trend in world food supply even in the absence of any devastation from Ug99. The report states, “countries in the non-OECD region are expected to continue to experience a much stronger increase in consumption of agricultural products than countries in the OECD area. This trend is driven by population and, above all, income growth – underpinned by rural migration to higher income urban areas...OECD countries as a group are projected to lose production and export shares in many commodities..Growth in the use of agricultural commodities as feedstock to a rapidly increasing biofuel industry is one of the main drivers in the outlook and one of the reasons for international commodity prices to attain a significantly higher plateau over the outlook period than has been reported in the previous reports.”
The FAO warns that the explosive growth in acreage used to grow fuels and not food in the past three years is dramatically changing the outlook for food supply globally and forcing food prices sharply higher for all foods from cereals to sugar to meat and dairy products. The use of cereals, sugar, oilseeds and vegetable oils to satisfy the needs of a rapidly increasing bio-fuel industry, is one of the main drivers, most especially the large volumes of maize in the US, wheat and rapeseed in the EU and sugar in Brazil for ethanol and bio-diesel production. This is already causing dramatically higher crop prices, higher feed costs and sharply higher prices for livestock products.

Ironically, the current bio-ethanol industry is being driven by US government subsidies and a scientifically false argument in the EU and USA that bio-ethanol is less harmful to the environment than petroleum fuels and can reduce CO2 emissions. The arguments have been demonstrated in every respect to be false. The huge expansion of global acreage now planted to produce bio-fuels is creating ecological problems and demanding use of far heavier pesticide spraying while use of bio-fuels in autos releases even deadlier emissions than imagined. The political effect, however, has been a catastrophic shift down in world grain stocks at the same time the EU and USA have enacted policies which drastically cut traditional emergency grain reserves. In short, it is a scenario pre-programmed for catastrophe, one which has been clear to policymakers in the EU and USA for several years. That can only suggest that such a dramatic crisis in global food supply is intentional.

A plan to spread GMO?

One of the consequences of the spread of Ug99 is a campaign by Monsanto Corporation and other major producers of genetically manipulated plant seeds to promote wholesale introduction of GMO wheat varieties said to be resistant to the Ug99 fungus. Biologists at Monsanto and at the various GMO laboratories around the world are working to patent such strains.

Norman Borlaug, the former Rockefeller Foundation head of the Green Revolution is active in funding the research to develop a fungus resistant variety against Ug99 working with his former center in Mexico, the CIMMYT and ICARDA in Kenya, where the pathogen is now endemic. So far, about 90% of the 12,000 lines tested are susceptible to Ug99. That includes all the major wheat cultivars of the Middle East and west Asia. At least 80% of the 200 varieties sent from the United States can't cope with infection. The situation is even more dire for Egypt, Iran, and other countries in immediate peril.

Even if a new resistant variety was ready to be released today it would take two or three years' seed increase in order to have just enough wheat seed for 20 percent of the acres planted to wheat in the world.

Work is also being done by the USDA's Agricultural Research Service (ARS), the same agency which co-developed Monsanto’s Terminator seed technology. In my book, Seeds of Destruction I document the insidious role of Borlaug and the Rockefeller Foundation in promoting the misnamed Green Revolution as well as patents on food seeds to ultimately control food supplies as a potential political lever. The spreading alarm over the Ug99 fungus is being used by Monsanto and other GMO agribusiness companies to demand that the current ban on GMO wheat be lifted to allow spread of GMO patented wheat seeds on the argument they are Ug99 stem rust resistant.

Source: Financialsense.com

Other source: Moneynews.com

Monday, 10 March 2008

Biofuels 'risk global starvation'

The rush towards biofuels is theatening world food production and the lives of billions of people, the British Government's chief scientific adviser said yesterday.

John Beddington put himself at odds with ministers who have committed Britain to large increases in the use of biofuels over the coming decades.

In his first important public speech since he was appointed, Professor Beddington described the potential impacts of food shortages as the “elephant in the room” and a problem which rivalled that of climate change.

“It’s very hard to imagine how we can see the world growing enough crops to produce renewable energy and at the same time meet the enormous demand for food,” he told a conference on sustainability in London yesterday.

“The supply of food really isn’t keeping up.”

By 2030, he said, the world population would have increased to such an extent that a 50 per cent increase in food production would be needed. By 2080 it would need to double. But the rush to biofuels – allegedly environmentally friendly – meant that increasing amount of arable land had been given over to fuel rather than food.

The world’s population is forecast to increase from the six billion at the start of the millennium to nine billion by 2050. Already biofuels have contributed to the rapid rise in international wheat prices and Professor Beddington cautioned that it was likely to be only a matter of time before shoppers in Britain faced big price rises because of the soaring cost of feeding livestock.

His comments come just a month after the Government welcomed a European Commission target requiring 10 per cent of all fuel sold in British service stations to be derived from plants within 12 years. Already biofuels attract a 20p per litre reduction in duty to encourage their uptake.

Hilary Benn, the Environment Secretary, recently announced additional funding for biofuel research and farmers can claim subsidies to grow crops for energy.

Last year US President George W. Bush called for a massive increase in the use of ethanol in the US over the next decade. The US now devotes more acreage to growing corn than at any time since 1944. Farmers planted 90.5 million acres in 2007, 15 per cent more than a year before.

If White House efforts to double ethanol production this year are achieved, and in due course 40 per cent of that corn ends up in petrol tanks, the world will face a harder and costlier time feeding itself.

A spokesman for Ruth Kelly, the Transport Secretary, insisted that the Government was well aware of the possible negative effects of biofuels.
“We take this issue very seriously and we are not prepared to go beyond current target levels for biofuels until we are satisfied it can be done sustainably.”

Professor Beddington said that the prospect of food shortages over the next 20 years was so acute that politicians, scientists and farmers must begin to tackle it immediately.

“Climate change is a real issue and is rightly being dealt with by major global investment,” he said afterwards. “However, I am concerned there is another major issue along a similar time scale, an elephant in the room – that of food and energy security. This is giving me and many of my scientific colleagues much concern.”

Population levels are growing so fast already that an extra six million people are born every month. Growing enough food for everyone was further challenged, he said, because of climate change, which was likely to lead to a shortage of water.

Scientists say that intense dry spells will become more frequent over the next century. The supply of water will be put under further pressure because of the increased number of people who need it, not only to drink but to keep their crops alive. The production of a tonne of wheat, for example, requires 50 tonnes of water.

Because it was almost impossible to control the population increase in the short term, Professor Beddington told the conference, other measures would need to be taken. “Agriculture has been doing pretty well against the population size but things are changing now and they are changing quite dramatically,” he said.

“Don’t we need to do something about food? Demand has grown enormously, particularly in China and India, where much of the driving force is increased demand. By 2030 energy demand is going to be up by 50 per cent and demand for food is going to be up by 50 per cent.”

The increase in demand has been reflected by the rapid rise in the prices of basic commodities, including wheat, over the past two years.

Biofuels have been put forward as a means of reducing the greenhouse gas emissions pumped out by fossil fuels but recent studies have questioned their impact when all factors, such as the use of fertilisers on the crops, are taken into account. Critics have been angered by the loss of tropical rainforests, which have been cleared to allow farmers to grow biofuel crops.

Deforestation has been calculated to account for about 18 per cent of world greenhouse gas emissions and Professor Beddington said that to destroy rainforests in order to grow biofuel crops was “insane”.

He added: “Some of the biofuels are hopeless, in the sense that the idea that you cut down rainforest to actually grow biofuels seems profoundly stupid.”

He said that human ingenuity was extraordinary and he was confident that food production could be boosted, including by growing genetically modified crops.

Josette Sheeran, executive director of the World Food Program, told the European Parliament in Brussels yesterday: “The shift to biofuels production has diverted lands out of the food chain. Food prices such as palm oil in Africa are now set at fuel prices. It may be a bonanza for farmers – I hope it is true – but in the short term, the world’s poorest are hit hard.”

Source: Theaustralian.news.com.au