8 April 2008
Rice Riots
Posted by Joy Bischoff under: Emergency Preparation; World Affairs; World Economy .
Peter Anderson sent me this article that is disturbing but important as we contemplate how seriously to follow the suggestion to put aside some food storage. The writer touches on the bio-fuel problem taking up farmland. The article also shows the weakness of a global marketplace when it comes to the crisis of feeding the people.
Fear of rice riots as surge in demand hits nations across the Far East
From
April 8, 2008
Any farmer in the Philippines caught hoarding rice risks spending the rest of his life in jail for the crime of “economic sabotage”.
Meanwhile, on the streets of Jakarta, Indonesia, thousands of makers of traditional tempeh soyabean cakes strike in protest as their livelihoods are destroyed and their countrymen starve. In Malaysia, where immense palm oil plantations stretch as far as the eye can see, panic buying of palm oil has stripped stores bare.
Chinese, Korean and Japanese companies are preparing to compete in a desperate “land grab” for agricultural land across the globe. Japan already owns three times more farmland overseas than in its home territory; Seoul is keen to do the same…
The US Department of Agriculture believes that the world will suffer a 29 million tonne discrepancy this year between what it needs to feed itself and what it can actually produce. Markets have been quick to recognise this and the traditional Asian staples of soyabeans, palm oil and pork have all soared.Many grain and edible oil markets have also been squeezed by what some observers believe is an unsustainable conflict between cars and stomachs. Land that might previously have been used to feed people is increasingly planted with crops designed for conversion to biofuels, forcing unexpected rises in the prices of everything from tofu to instant noodles.
But perhaps more unsettling has been the suddenness with which Asia’s exposure to a food crisis has emerged. Countries that, until a few weeks ago, could rely on substantial imports of rice from India, Egypt or China are scrambling to cope with a new reality in which they cannot do so.
Nations such as Japan and South Korea that were running food economies with small self-sufficiency ratios have taken only a few weeks to react bitterly to the new situation as the world’s food stocks-to-consumption ratio plunges to an all-time low.
India - which traditionally has exported millions of tonnes of rice - has decided to set aside a special strategic food reserve on top of its existing wheat and rice stockpiles. Vietnam, the world’s third-largest rice producer, has been forced to curb exports and Cambodia has banned them completely.
In Thailand, the world’s largest producer of rice, rising concerns of a shortage have sent rice prices more than 50 per cent higher over the past month. When Samak Sundaravej, the Thai Prime Minister, appeared on his weekly television cooking show over the weekend he told Thais there would be “enough rice for the Kingdom”.
It was not a message designed to calm nerves elsewhere in Asia where Thai rice exports are an essential part of the diet.
Amid these highly visible signs of government-level panic, Asian countries that have rarely faced severe conflicts of “resource diplomacy” are accordingly readying themselves for showdowns.
Analysts give warning of governments across the region resorting to a “starve-your-neighbour” policy in an effort to becalm rioting domestic populations, and the UN International Fund for Agriculture has previously said that food riots will become commonplace…
Troops and special police are expected to be used in the process of distributing rice to regions where supply was never an issue.
23 Comments so far...
Matt Says:
8 April 2008 at 10:54 am.
This whole article is pretty startling stuff. I think most of us Americans have never known want and we are so insulated that we can’t begin to understand the seriousness of this situation…yet. I am shocked at how fast the meltdown is happening. The signs are everywhere but most Americans haven’t felt more than a pinch. The more I read the more I realize things are changing and we have to get prepared.
Rice Jumps to Record on Philippine Imports, Curbs on Exports
By Glenys Sim and Danielle Rossingh
April 8 (Bloomberg) — Rice climbed to a record for a fourth day as the Philippines, the biggest importer, announced plans to buy 1 million tons and some of the world’s largest exporters cut sales to ensure they can feed their own people.
Rice, the staple food for half the world, rose as much as 2.9 percent to $21.60 per 100 pounds in Chicago, double the price a year ago. Philippine President Gloria Arroyo announced two rice today and pledged to crack down on hoarding. Anyone found guilty of “stealing rice from the people” will be jailed, she said.
“We’re in for a tough time,” Roland Jansen, chief executive officer of Pfaffikon, Switzerland-based Mother Earth Investments AG, said in an interview with Bloomberg Television from Zurich today. Unless prices decline, “you will have huge problems of daily nutrition for half the planet.” Mother Earth holds about 4 percent of its $100 million funds in the grain.
China, Egypt, Vietnam and India, accounting for more than a third of global rice exports, curbed sales this year to protect domestic stockpiles. The World Bank in Washington says 33 nations from Mexico to Yemen may face “social unrest” after food and energy costs increased for six consecutive years.
The Philippines, which imports about 15 percent of its rice, is tightening controls over domestic sales and buying more overseas. The government’s rice tenders are in April and May.
http://www.bloomberg.com/apps/news?pid=20601087&sid=ahRifIz3hjh0&refer=home
Mac Says:
8 April 2008 at 11:07 am.
I wonder why we aren’t hearing about this in the news? It seems like a major story to me.
Jesse Says:
8 April 2008 at 11:16 am.
Kind of freaky that there are rice shortages at the same time as wheat shortages. Then again, may not because of all the land turned into bio fuels. And there is no incentive to change because there is such a high return for farmers in the bio fuel industry. Good pay off trumps growing food.
T. Fan Says:
8 April 2008 at 11:20 am.
Mac, I think our media has been cautioned about filing reports about anything that would cause consumer confidence to be shook up. They have been playing down stories about the wheat problem, the whole bio-fuel fiasco etc. Notice that the article Joy blogged was the Times out of the UK. The one Matt put up was on Drudge who puts up info that the rest of the press ignores.
Benjamin Says:
8 April 2008 at 11:47 am.
You hit it on the head, T. Fan. Keeping Wall Street from having the jitters is number one on the wish list and the MSM is cooperating.
Pickles Says:
8 April 2008 at 1:16 pm.
Wow this really makes me hungry for rice. I want to go buy lots and lots of rice.
The Realist Says:
8 April 2008 at 3:06 pm.
Things are a little more expensive but people can still get by just fine. Maybe some people will have to buy a bit cheaper food but it isn’t as bad out there as some people make it sound.
Joy Bischoff Says:
8 April 2008 at 3:13 pm.
I have to jump in on this comment. Realist, the article above says there will be a 29 million ton shortage of food this year. That means people will die and a lot will go hungry or at least go without other necessities. True, here in America, most people are still fine. We think we suffer if we can’t get our favorite brand of something or if fresh strawberries are too expensive. This article is talking about the third world and they are starting to really suffer and it will grow worse. In third world countries, they spend an average of 50% of their income on food. In Thailand, rice prices have doubled in the last month.
Below is a part of the article that I didn’t include. The Thailand figures hadn’t been updated. With poor people, these percentages are devastating.
33% Rise since January in price paid by Philippines for rice from Vietnam
3 billion People worldwide who rely on rice as a staple food
40% Rise in rice price in Thailand this year
19.2% Rise in consumer prices in Vietnam last month, against March 2007
8.4% Rise in food prices in the Philippines last month, compared with March 2007
854 million Number of people worldwide who are “food insecure”
1 billion People globally who survive on less than $1 a day, defined as “absolute poverty”
Matt Says:
8 April 2008 at 3:18 pm.
And don’t forget the other part of the problem. This is causing a lot of countries to either raise tariffs or ban exports altogether. For countries who depend on imports to feed them like we now do plus a lot of other countries, this is a totally new problem brought on by globalism that will have consequences, bad ones.
The Realist Says:
8 April 2008 at 3:22 pm.
Okay I stand corrected. For third world countries this really is a problem. I just get so sick of people in spoiled America saying the sky is falling. We have it so good we don’t even comprehend what hard is or what hungry is. Things are actually going pretty well here if you don’t listen to the dooms dayers.
Joy Bischoff Says:
8 April 2008 at 3:32 pm.
Realist, I will be as gentle as I can but still try to address your thoughts honestly because I think it is important. I have been watching closely how people have been reacting to current events and I feel strongly that fear is the main reaction. And what that fear creates is a desire to entrench in a conviction that nothing has really changed or really will. It is natural to not want our lives shaken up. That fear causes what is called willful blindness. It is willful because it takes conscious effort to block out what is causing the fear and down play it. We can become so determined to deny changing events that we will even ridicule those who are not blinding themselves to reality. I know you value reality so I am hoping this will help. I also want to share a little of a verse of scripture from the Book of Mormon. You may not believe in that book but the sentiment is wise and pertinent. It is talking about the last days when prophecies begin to be fulfilled and I believe we are in that time. It says there will be people who believe everything is fine and refuse to perceive unfolding events with clarity. They will say:
“All is well in Zion, yea Zion prospereth, all is well. Thus the devil cheateth their souls and leads them carefully down to hell.”
We know that if we are prepared we shall not fear. That means more than just physical preparations. We need to be close to God and feel His peace so we have faith that no matter what happens, His Spirit will guide us through the exciting events of the last days and we can find comfort in knowing that we are His.
CindyL. Says:
8 April 2008 at 3:43 pm.
I am Mormon and I see so many Mormons who are like that. They get really mad at anyone who suggests that things aren’t going great. Zion prospereth and don’t say differently or we will call you a fanatic. That kind of attitude is so narrow, like wearing blinders. I agree that it has to be fear that makes people act like that. One of the talks this weekend mentioned people being focused on creature comforts and this being the main goal. My parents have always taught us to be prepared but then not sit around worrying about things. Be aware but also be positive and live a happy life.
The Realist Says:
8 April 2008 at 3:50 pm.
I’ll think about what you both wrote. Maybe I am afraid, I don’t know. I don’t want to become a fanatic so I want to be careful and take my time watching how things will turn out.
CindyL. Says:
8 April 2008 at 3:59 pm.
I hope you don’t get too upset with me Realist, but I think even the concern about being a fanatic is based in fear. The moderators here have written about the fear of labels. ‘Fanatic’ is a label that people are so afraid of having. I think we need to stand up with courage and face the truth and speak the truth and not care what anybody says or thinks. Or if we still care then we should try not to and do it anyway because it is right.
Saddened Says:
8 April 2008 at 4:09 pm.
Cindy, I am really impressed that a young college woman like you is so wise. I think I remember you saying you were home schooled. Your parents must have done a great job. I agree that it takes a lot of courage to see reality. Some people do go overboard but it doesn’t seem like most of the people around here do.
Anon88 Says:
8 April 2008 at 5:54 pm.
Although I read here quite often, I seldom have time to write. I did want to take a moment though to say how impressed I am with you women and the sentiments you have expressed. Cindy, I wish you were one of my students. Keep it up, people.
Realist, don’t feel bad. I get scared to and am afraid of labels because of my situation so I won’t cast any stones. Good luck.
CindyL. Says:
8 April 2008 at 7:10 pm.
Thanks guys. That means a lot to me. I still have so much to learn but my parents gave me a good foundation and I have read a lot.
Stumpy Says:
8 April 2008 at 7:30 pm.
Hey Professor Sir - quit flirting with the girls. Im gittin jealous. If I wear a wig and wiggle when I walk will ya kiss my ass to?
Hank Says:
8 April 2008 at 9:31 pm.
Professor, you had better run before Stumpy makes you plum crazy.
This article was pretty disturbing. More pork and beans and chili for a change to.
Roy Bischoff Says:
8 April 2008 at 11:33 pm.
Meanwhile, the US government is probably still paying farmers not to grow things. Since the price of food is up, that means they get paid more for not growing stuff.
Terrie Soberg Says:
8 April 2008 at 11:45 pm.
But you should see all the corn they are growing here in Minnesota. Gotta have a biofuel source!
Bunny Says:
9 April 2008 at 3:43 am.
If they are feeding corn to the cars, I wonder what they can feed to the cows so that the price of beef goes down? I am glad I am not a big meat consumer. I can remember when ground beef was 59 cents a pound…and that was the “good” stuff!
Nalvy Says:
9 April 2008 at 12:08 pm.
Well I have been impressed this morning by the extreme figures and lack of knowledge on my part of it! If I was in the media I would be wanting to let the American people know what is going on! I have family living in the Ukraine and the rely entirely of the efforts of my family here in America… they get new clothes and nonpersishable food sent to them every year because they can barely manange to scrape a living. It makes me sad to think that other families like them will suffer even to the point of death because of the lack of food.
And getting paid more to not grow than to grow is just plain stupid…doesnt the government realize that we are not all powerful and immune to the world around us? If every other country has a famine then who would they come clamoring to? the ones who have food… and we wont have any because our farmers are being paid not to grow! Talk about making enemies!
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