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Aggregating Energy Since 2006

Food Prices

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The March/April 2008 issue of Foreign Policy discusses high wheat prices in its FP Quiz. I found the following interesting:

Although the price of gold rose 35 percent and the price of oil skyrocketed 57 percent in 2007, the price of wheat grew a staggering 80 percent during the same period. According to the International Grains Council, a ton of American hard red winter wheat -- the common standard for the price of wheat -- sold for $203 in early January before leaping to $365 by the end of December, thanks to rising demand in developing countries and heavy droughts.

No talk of biofuels? I guess they should talk to Shell Oil. I just wanted to note this because rising food prices involve many factors despite the one sided coverage that likes to insist they are heavily dependent on corn prices.

I would guess another factor is the high price of oil, which drives up transportation costs. And as extreme weather events from global climate change increase in intensity and frequency, food prices will continue to rise regardless of biofuels policy.

This suggests to me that we may want to encourage some sort of change in policy if we are worried about people not being able to afford food. But I'm guessing the concerns for food prices are driven largely by cynical anti-biofuels interests who will go back to ignoring the plight or the poor immediately after their anti-biofuels polices were enacted.