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World food price on the rise

World food price on the rise.

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World food price on the rise

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  1. World foodprice on the rise

  2. Speculation is the act of trading in an asset, or conducting a financial transaction, that has a significant risk of losing most or all of the initial outlay, in expectation of a substantial gain. With speculation, the risk of loss is more than offset by the possibility of a huge gain; otherwise, there would be very little motivation to speculate. Report show that it’s 85% speculation and 15%commercial. • Statistic reveal that speculative investment in food commodities in 2011 amounted to 20 times more than the total spent on agricultural aid by all countries combined.

  3. Food prices are soaring. Increased demand from developing economies, rising fuel prices, poor weather ruining harvests, and a shift to biofuel production leave the consumer paying more for basic staples and is having its hardest impact on poorer nations. Consumers who are transitioning to a more meat-heavy diet. Food prices have been on the rise since 2007, due to bad weather and increasing demand from biofuels and developing nations.

  4. The other two important factors are meat-intensive dietary habits and corn-based biofuel. A farmer and his wife work in a corn field. The spiraling price of corn has brought protests and riots to the streets of many countries.

  5. As the food crisis deepens, more and more cultivable land is being used to grow plants for the production of 'ecological', non-oil based fuels. This German landscape is a patchwork of rapeseed fields between cornfields and other food crops. Measurements of emissions from the burning of biofuels derived from rapeseed and maize have been found to produce more greenhouse gas emissions than they save.

  6. Worst U.S. Drought in 50 Years to Raise Food Prices in 2013. • More than 60% of America’s farms are located in areas experiencing drought. Two thirds of all crops and of livestock are produced in areas experiencing at least moderate drought. Animal-based perishable foods will be hardest hit.

  7. According to network theorist, Yaneer Bar-Yam, “Unless they get speculators under control, eventually there’s going to be a big bubble, it’s a countdown to a real problem. Speculators cause the bubbles and crashes, and ethanol causes the background rise.” In less than a decade, some 15% of the world’s corn production has been converted from food to fuel.

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