As Food Prices Soar, Some Shortages Appear
A growing global shortage of food staples such as rice has led the head of the World Food Program to say a "silent tsunami" of hunger is sweeping through some of the world's poorest nations.
What's more, "Global food stocks for basic commodities like rice, wheat, other basic commodities have fallen so low that we're actually starting to see shortages here in the U.S.," Scott Faber of the Grocery Manufacturers Association observed to Early Show co-anchor Maggie Rodriguez Monday. "This is a significant problem not just here, but especially in parts of the world where people are living on less than $1 a day."
CBS News correspondent Bianca Solorzano reports actual and feared shortages, which accompany skyrocketing prices, have led some stores to start rationing the hardest-hit staples.
In a warehouse store in Mountain View, Calif., manager Stephanie Gordon told CBS News she's "been with Costco for 21 years and I haven't seen it like this before," with many consumers stocking up on staples such as rice out of growing concern over availability. It's limiting amounts shoppers can scoop up.
The hottest seller at that Costco at the moment? Fifty-pound bags of jasmine rice -- even though rice's price has gone through the roof. A 20 pound bag that sold for $9 just two months ago now goes for $16.
Other groceries are also way up over this time last year: flour by 13 percent, milk by 10 percent and eggs by 30 percent.
The short supplies contribute to rising prices of food, along with zooming costs of the fuel to transport it.
What's behind the dwindling stocks?
Grocers say it boils down to increased global demand for protein, particularly in Asia; increased demand for grains to feed the livestock to produce the protein; and increased demand for grains to make ethanol to meet new fuel demands.
Faber pointed out to Rodriguez that, "The price of dairy products has risen by about 20 percent over the last three years, especially as the price of corn, which is the primary ingredient in a cow and ultimately in milk and cheese, has skyrocketed over the last few years. The price of eggs has also grown by about 70 percent over the last three years, again, because of the rising cost of feeding corn to chickens.
"There are lots of reasons that these products are going up, but by far the biggest one is our decision to divert about 30 percent of our corn into our fuel supplies in the form of corn ethanol."
Another factor, Faber says, is "that more people, especially in Asia, have more money and they're buying more food -- especially proteins, meat. That's increasing global demand generally. Obviously, weather is a factor. There's been poor weather in places like Australia.
"But by far the biggest factor, and the one factor Congress has under its control, is the decision to make so much of our food into fuel, and at a time when fuel prices are rising so much, it doesn't seem to make much sense to do that."
Copyright 2010 CBS. All rights reserved. What's more, "Global food stocks for basic commodities like rice, wheat, other basic commodities have fallen so low that we're actually starting to see shortages here in the U.S.," Scott Faber of the Grocery Manufacturers Association observed to Early Show co-anchor Maggie Rodriguez Monday. "This is a significant problem not just here, but especially in parts of the world where people are living on less than $1 a day."
CBS News correspondent Bianca Solorzano reports actual and feared shortages, which accompany skyrocketing prices, have led some stores to start rationing the hardest-hit staples.
In a warehouse store in Mountain View, Calif., manager Stephanie Gordon told CBS News she's "been with Costco for 21 years and I haven't seen it like this before," with many consumers stocking up on staples such as rice out of growing concern over availability. It's limiting amounts shoppers can scoop up.
The hottest seller at that Costco at the moment? Fifty-pound bags of jasmine rice -- even though rice's price has gone through the roof. A 20 pound bag that sold for $9 just two months ago now goes for $16.
Other groceries are also way up over this time last year: flour by 13 percent, milk by 10 percent and eggs by 30 percent.
The short supplies contribute to rising prices of food, along with zooming costs of the fuel to transport it.
What's behind the dwindling stocks?
Grocers say it boils down to increased global demand for protein, particularly in Asia; increased demand for grains to feed the livestock to produce the protein; and increased demand for grains to make ethanol to meet new fuel demands.
Faber pointed out to Rodriguez that, "The price of dairy products has risen by about 20 percent over the last three years, especially as the price of corn, which is the primary ingredient in a cow and ultimately in milk and cheese, has skyrocketed over the last few years. The price of eggs has also grown by about 70 percent over the last three years, again, because of the rising cost of feeding corn to chickens.
"There are lots of reasons that these products are going up, but by far the biggest one is our decision to divert about 30 percent of our corn into our fuel supplies in the form of corn ethanol."
Another factor, Faber says, is "that more people, especially in Asia, have more money and they're buying more food -- especially proteins, meat. That's increasing global demand generally. Obviously, weather is a factor. There's been poor weather in places like Australia.
"But by far the biggest factor, and the one factor Congress has under its control, is the decision to make so much of our food into fuel, and at a time when fuel prices are rising so much, it doesn't seem to make much sense to do that."
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You can thank George W. Bush. This is one of his many disasters for which he is reponsible (the corn-to-ethanol program). This man has the ''reverse'' Midas touch. Everything he touches turns into a disaster.
The "end times", a period of complete and unequivocal human misery, as foretold in Revelations (Ezekiel, too) is merely a prophesy. I should think that the Lord would come at His appointed hour regardless of the state of the world. Too many people look at this as a obligation to drive the world into chaos and conflict or merely allow it to happen. Neither one of you sound like that so this isn''t a scold. But we can, by our own efforts, alter some of the predictions as told in either of the books so the world does not have to be as nasty as prophesized. This leads me toooooo....
....Every issue that negatively impacts mankind is caused or exacerbated by the fact there are too many of us. Food shortages and the consequent unrest is simply one aspect of a world wide quality of life that is in free fall. Too much emphasis on ethanol as a substitute for oil and the Bush/Cheney Axis'' mind games certainly don''t help but as our population rockets toward the 7 billion mark, our sheer numbers put an almost unbearable pressure on the planet''s capacity to carry us. Something''s going to give soon.
I hate to say it and I resent the necessity but we''re going to have to go beyond "sustainability" and seriously thing about "contraction". Limit our birthrate so the world can start cutting down it numbers and, for those who can afford to do so, scale back on our lifestyles are two ways we can take some of the pressure off...
When you go to the polls, think about who voted for this war, who continues to lie to you, who is more likely to continue wars, and who is more likely to push NAFTA.
If you''re happy with the way things are, keep doing the same things.
Ethanol is not the answer to our fuel and energy problems (note that the government isn''t good at "picking winners"), but it is also not a major contributor to higher food prices. Like most of you (and the grocery representative), I would love to blame ethanol. But increased demand from China and India is what really drives todays food inflation. Millions of people are emerging from the throes of poverty and demanding more food.
CBS''s use of a grocery representative as a source of information on the causes of higher food prices is journalistically and intellectually dishonest (or worse, lazy). Why not ask an economist? Or at least someone with a quasi-OBJECTIVE viewpoint?
Give me some real information. Don''t spread half-truths.
Ethanol is not the answer to our fuel and energy problems (note that the government isn''t good at "picking winners"), but it is also not a major contributor to higher food prices. Like most of you (and the grocery representative), I would love to blame ethanol. But increased demand from China and India is what really drives todays food inflation. Millions of people are emerging from the throes of poverty and demanding more food.
CBS''s use of a grocery representative as a source of information on the causes of higher food prices is journalistically and intellectually dishonest (or worse, lazy). Why not ask an economist? Or at least someone with a quasi-OBJECTIVE viewpoint?
Give me some real information. Don''t spread half-truths.