Food prices rising around the world
It is not only in our country that prices is skyrocketing but also in Bangladesh, Haiti, Egypt, and most other countries.
Two large warehouse chains in the US (Costco and Sam’s Club) have gone so far as to put a quota on how many bags of rice and flours you can buy.
The probable cause? The skyrocketing price of oil and corn.
Several factors contribute to higher food prices, analysts say, but none more than record prices for oil, which last week closed above $105 a barrel. Oil is not only driving up production and transportation costs, but also adding to demand for corn and soybeans, used to make alternative fuels such as ethanol and biodiesel.
As a result, corn prices have more than doubled in commodity markets over two years, and soybeans nearly tripled, according to DTN, a commodities analysis firm in Omaha. Meanwhile, with poor harvests in major wheat-producing regions, wheat prices have more than tripled.
These crops have a profound impact on food prices because they form foundations for many products, including oils, sweeteners, and flour. Corn, for example, is a key ingredient in livestock feed. When the price of corn rises, so does the price of feed, and ultimately, so do the prices of meat, poultry, and eggs.
[boston.com via neatorama.com]
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