Wednesday, April 16. 2008
Food Crisis May Threaten Your Portfolio Posted by NexPlan Recycling
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The World's Food Supplies Have Collapsed. Worldwide stockpiles of cereals (wheat, corn, etc.) are expected to fall to a 25-year-low of 405 million tonnes in 2008. That's down 21 million tonnes, or 5%, from their already reduced level last year.
U.S. wheat stockpiles are at a 62-year low, even though farmers are planting as much as they can. The U.S. dollar falling fast, foreign buyers are lining up to buy as much grain as they can. Wheat recently soared to the highest price in 28 years. Meanwhile rice, a staple food for three billion people, is becoming increasingly scarce. World stores of rice have shrunk from 130 million tons eight years ago to today's stockpile of 72 million tons, enough for only 17% of annual global demand. Result are, the price of rice is up 70% in the past year. Corn well, more and more of that is used for ethanol. The price of corn is up over 70% in the past year and has more than doubled in the past two years. So to summarize, stockpiles are at record lows. The supply on hand can be measured in days! And growth in production can't keep up with growth demand. Now Less take a moment and think what if What If Something Goes Wrong? Like there is not enough wrong already. What if the increasingly unusual weather the world has been having causes more droughts on one side of the world and floods on the other? What if there's some other major crop failure? Wednesday, April 16. 2008
Effects of Global Warming on Agriculture Posted by NexPlan Recycling
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Climate is the most significant factor in determining plant growth and productivity. Climate change is any long-term significant change in the average weather that a given region experiences. Average weather may include average temperature, precipitation and wind patterns.Without intervention to reduce emissions of greenhouse gases, global average surface temperature is projected to increase by about 0.2°C per decade during the 21st century. This swift change in climate will have major implications for agriculture around the globe.
Moisture and water availability will be affected by a temperature increase, regardless of any change in rainfall. Higher temperatures increase the evaporation rate, thus reducing the level of moisture available for plant growth, although other climatic elements are involved. Warming of the earth’s atmosphere will significantly affect the wheat and maize yields across the globe. Reduced moisture availability would only add to the existing problems of infertile soils, soil erosion and poor crop yields. Although climate changes may have some adverse impacts on agricultural production around the world, the increase in atmospheric carbon dioxide concentrations could be beneficial. Plants grow as a result of photosynthesis - the mechanism whereby the plant converts carbon dioxide from the atmosphere into food. With higher levels of carbon dioxide stimulating the rate of photosynthesis, the growth rate and productivity of plants could be expected to increase. This would be beneficial for global food stocks. Most crops grown in cool, temperate regions respond positively to an increased concentration of carbon dioxide, including some of the current major food staples such as wheat, rice and soybean. Some studies have shown that growth rate in these crops may increase up to 50% if carbon dioxide in the atmosphere is doubled. Crops grown in the tropical regions of the world, including sorghum, maize, sugar cane and millet, which combined, account for about one fifth of the world's food production, do not respond as well to increases in carbon dioxide. In order to maintain agricultural output to meet the demand for a growing world population, farmers will have to adjust and adapt to compensate for a changing climate. Higher temperatures would increase the demand for irrigation of agricultural land. Unfortunately, in many arid and semi-arid regions of the world the demand for water already exceeds supply. Increased spread of pests and disease may also place additional demands on the need for fertilizers, pesticides and herbicides which are costly and unhealthy. The ability to adapt to the effects of climate change will vary greatly between regions. Economic and technological constraints will limit the rate of adaptability, with poorer economies lagging behind. Without planning and intervention, climate change will likely widen the gap between the rich and deprived areas of the world. Monday, April 14. 2008
Riots, instability spread as food ... Posted by NexPlan Recycling
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from cnn.com April 14, 2007
Riots from Haiti to Bangladesh to Egypt over the soaring costs of basic foods have brought the issue to a boiling point and catapulted it to the forefront of the world's attention, the head of an agency focused on global development said Monday "This is the world's big story," said Jeffrey Sachs, director of Columbia University's Earth Institute. "The finance ministers were in shock, almost in panic this weekend," he said on CNN's "American Morning," in a reference to top economic officials who gathered in Washington. "There are riots all over the world in the poor countries ... and, of course, our own poor are feeling it in the United States." World Bank President Robert Zoellick has said the surging costs could mean "seven lost years" in the fight against worldwide poverty. "While many are worrying about filling their gas tanks, many others around the world are struggling to fill their stomachs, and it is getting more and more difficult every day," Zoellick said late last week in a speech opening meetings with finance ministers. for the complete story visit: http://www.cnn.com/2008/WORLD/americas/04/14/world.food.crisis/index.html Saturday, April 12. 2008
Looming Water Shortage - A World ... Posted by NexPlan Recycling
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The world is running out of water. Humans are polluting, depleting, and diverting its finite freshwater supplies so quickly, we are creating massive new deserts and generating global warming from below. This, along with variations in water availability, means that the water to produce food for human consumption, industrial processes and all the other uses is becoming scarce. Right now there are over one billion people on this planet without adequate drinking water. In many parts of the world, surface waters are too polluted for human use. Ninety per cent of wastewater in the Third World is discharged untreated. Eighty per cent of China's and 75 per cent of India's surface waters are too polluted for drinking, fishing, or even bathing. The story is the same in most of Africa and Latin America. Water scarcity threatens economic and social gains and is a potent fuel for wars and conflict. This planet faces a water crisis that will hit Asia especially hard.
We are polluting our water supply at an alarming rate. Water pollution has many causes and characteristics.. Organic wastes such as sewage put high oxygen demands on the receiving water leading to oxygen depletion with potentially severe impacts on the whole eco-system. Industries discharge a variety of pollutants in their wastewater including heavy metals, organic toxins, oils, and solids. Discharges can also have thermal effects, especially those from power stations, and these also reduce the available oxygen. Silt-bearing runoff from many activities including construction sites, deforestation and agriculture can also add to damaging ecological systems. Population growth alone does not account for increased water demand. Since 1900, there has been a six-fold increase in water use for only a two-fold increase in population size. This reflects greater water usage associated with rising standards of living and consumption. In North America we don't take this as seriously as we should. Consider this: Providing water free of disease and toxins is ever more difficult, as old methods prove inadequate and new hazards emerge. Shortages have become endemic to many regions, as record drought and population sprawl sap rivers and lakes. Then there's the threat, unthinkable not too long ago, that now seems to eclipse all others: terrorism. More than half of humanity will be living with water shortages, depleted fisheries and polluted coastlines within 50 years because of a worldwide water crisis, warns a recent United Nations report. Put it all together, and it's easy to see why concern over clean drinking water might someday make the energy crisis look small in comparison. Saturday, April 12. 2008
FOOD RIOTS COULD SPREAD Posted by NexPlan Recycling
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Food riots could spread, UN chief warns
April 9, 2008 from the telepgraph.co.uk Rising food prices could threaten political stability around the world, the UN's leading humanitarian official said yesterday. Sir John Holmes, the undersecretary general for humanitarian affairs and the UN's emergency relief coordinator, were speaking after two days of rioting in Egypt over the soaring cost of basic foodstuffs. He told a conference in Dubai that rising prices would spark unrest across vulnerable nations. Average prices have risen 40 per cent across the world in less than a year. "The security implications should also not be underestimated as food riots are already being reported across the globe. "Current food price trends are likely to increase sharply both the incidence and depth of food insecurity." As well as the riots in Egypt, rising food costs have been blamed for violent unrest in Haiti,Ivory Coast, Cameroon, Mauritania, Mozambique and Senegal. Protests have also occurred in Uzbekistan, Yemen, Bolivia and Indonesia. China, India, Pakistan, Cambodia and Vietnam have curbed rice exports to ensure there is enough for their own people. Experts believe food insecurity should be treated as seriously as climate change. to read the article in full go to: http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2008/04/09/wriots109.xml Saturday, April 12. 2008
Rice Prices Rise Sharply Posted by NexPlan Recycling
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Compared to all the headlines about the financial crisis, climate change and oil prices, it's likely that a lot of people are unaware of the price of rice hitting $760 a tonne. Part of a surge in global food costs, rice prices on world markets have jumped 50 per cent in the past two months and at least doubled since 2004. A sharp rise in the price of rice is hitting consumer pocketbooks and raising fears of public turmoil in the many parts of Asia where rice is a staple.
The world community has given little attention to this crisis. Other issues like climate change and war do matter. But nothing matters more than mass hunger and malnutrition. And that almost certainly is what will happen. Even in the developed western world where we seem to be more concerned with oil prices, shortages in rice and wheat while have a drastic impact on us. Saturday, April 12. 2008
Beer getting pricier? Blame wheat ... Posted by NexPlan Recycling
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March 27, 2008 From MSN sympatico
If it seems like you are paying more for your cereal, beer and pizza lately, shake your fist in the direction of Pakistan, Uganda and Argentina, because a weird confluence of international events are combining to slash the world supply of wheat and boost prices. The downside of globalization is that a crop failure 10,000 miles away can lead to pricier Bud Lites here. It's actually a lot more serious than that. The New Scientist magazine reports that a wheat disease that started in central Africa actually threatens to destroy most of the world wheat crop, leaving millions to starve. A fungus called Ug99 has already spread from Africa to Iran and is bearing down on Pakistan, according to the report. This is bad news because Pakistan and Punjab wheat is extremely important to the entire food chain of the densely populous plains of South Asia. To read the full article go to : http://finance.sympatico.msn.ca/investing/stocks/article.aspx?cp-documentid=6619096 Friday, April 11. 2008
Rising Food Prices & Food Shortages Posted by NexPlan Recycling
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Food prices are on the rise. Oil price increases have not shrunk the human food supply, but biofuel production has! The more biofuels we produce, the less food we have
to eat, because we grow biofuel crops, even switch grass, using the same land, water, fertilizer, farm equipment, and labor we use to grow food. The world is running out of wheat because too many wheat farmers have switched to growing corn for ethanol production. The New Scientist magazine reports that a wheat disease called UG99 that started in central Africa actually threatens to destroy most of the wheat crop in that part of the world, leaving millions to starve. Add to that the cost of transporting food, droughts, and flooding and infections like UG99, and we have a scenario where food prices will climb drastically. Wheat prices have more than doubled in the past couple of years. That means that loaf of bread for your morning toast, and your weekend pizza will cost a lot more. It’s likely that a lot of people are unaware of the price of rice hitting $760 a tonne. Part of a surge in global food costs, rice prices on world markets have jumped 50 per cent in the past two months and at least doubled since 2004. A sharp rise in the price of rice is hitting consumer pocketbooks and raising fears of public turmoil in the many parts of Asia where rice is a staple. Beef and poultry will also cost more as it costs more to feed cattle and chicken as well as transporting food. Add to that, the world population continues to grow and will soon approach seven billion, and by 2050 it is projected to reach nine billion. Just two hundred years ago it was slightly over one billion. The emerging countries of China and India have over 2 billion people combined. Where is the extra food coming from? It will simply be a case of supply and demand. Food shortages lead to higher prices. Escalating food costs could pose a greater problem than soaring oil prices for the North American economy because the average household spends close to three times as much for food as for gasoline. The United Nations Environment Programme (UNEP) has released an extensive report on the current state of the global environment. Climate change, food and water shortage and a decline in biodiversity threaten humanity's survival. Immediate action is necessary, the report warns. So what do we do? Bury our heads in the sand and wait for some miracle? The answer lays in each one of us. We seem to sit around pointing fingers at other companies and countries while the situation becomes more dire. In North America we have not really been exposed yet to food shortages and the types of famines that they have in third world countries. There is an extreme lack of urgency, in North America especially, in regards to this issue. We all are going to be faced with a catastrophic food shortage soon if something is not done. Rising food prices could threaten political stability around the world. The security implications should also not be underestimated as food riots are already being reported across the globe. Current food price trends are likely to increase sharply both the incidence and depth of food insecurity. Rising food costs have been blamed for violent unrest in Egypt, Haiti, Ivory Coast, Cameroon, Mauritania, Mexico, Mozambique and Senegal. Protests have also occurred in Uzbekistan, Yemen, Bolivia and Indonesia. China, India, Pakistan, Cambodia and Vietnam have curbed rice exports to ensure there is enough for their own people. Experts believe food insecurity should be treated as seriously as climate change. In North America we seem to be more concerned with climate change, the price of oil and the financial crisis. The looming food shortage is something that requires immediate attention. |
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