Two Major Reasons for the Recent Volatility in Food Prices

George Rapsomanikis, the senior economist at the UN Food and Agriculture Organisation (FAO), revealed two major reasons for the recent volatility in food prices in an article dated October 11, 2011. He says:

The main reason for increased price volatility is that supply production cannot catch up with demand. What is happening is that we have a steady increase in demand, mainly due to increase in the population, and also a change in the diet of population in emerging economies who are gradually changing their diets, including more meat and more grain.

On the other side, production cannot catch up with consumption. The global stock levels are becoming lower, lower than they used to be ten years ago and if there is an external shock in the market, this is going to generate volatility. So tighter markets means more volatility in the future.

What Rapsomanikis fails to mention is that a major shock to the food supply could also cause regional famines and potential starvation in developed countries like the U.S., Canada, and Europe.

Competing for Precious Resources:
How the Biofuel Industry Puts Added Strain on the Food Supply

In addition to increased demand for food due to population increases and dietary shifts toward eating meat, there’s another force at work.

The truth is, about 30% of corn supplies are being diverted not to feed the hungry -- but to feed the the growth of biofuels. Now humans are not only competing with animals for their piece of the food supply... they’re also competing with the energy industry!

This means that any shock to the oil market can quickly cause an increase in the price of corn, which then causes a general increase in the price of all kinds of foods that use corn (and corn derivatives) as a primary ingredient.

In fact, research conducted by the Global Hunger Index (GHI) suggests that the root of the 2007-2008 food crisis was increased demand for biofuels combined with an increase in speculation in the commodities markets. GHI says we’re now on track for a repeat of 2008... except this time it may be worse.

Food prices may go higher than they did in 2008. And supplies may be stretched thinner than they’ve ever been stretched.

Price volatility and rising food prices are bad enough. But what happens when you can no longer buy certain food items at the grocery store? What happens when shelves get cleared out -- and there’s nothing left to restock the shelves with?

The Cheapest “Insurance” Money Can Buy

One of the best ways to protect yourself from food price inflation as well as food shortages (both temporary and long-term) is by building your own nutritious and delicious emergency food supply. And one of the fastest, easiest, and most cost-effective ways to do this is to get Emergency Food Supply Buckets from Solutions From Science.

Each food bucket is packed with a variety of breakfast, lunch, and dinner meals. They are nutrient dense to keep you well nourished. And they taste good, too, so you’ll look forward to each meal if and when you need to eat them.

Each bucket of Emergency Food Supply contains 84 servings of food, enough to last one person for 28 days (or four people for one week). Three buckets will provide enough food to last one person for almost three months (or four people for 21 days).

And if your financial resources are tight right now, please remember this: Just one bucket will provide you with a critical buffer against any temporary glitches in the food supply. Plus, it will give you some protection against food price inflation -- a disturbing trend that shows no evidence of slowing down.

Better 1 Year Too Soon... Than 1 Day Too Late

If you’re proactive and you get your Emergency Food Supply a year too soon, then you’re still protected. But if you wait and you’re one day too late, you may have hell to pay.

This is one place where you simply can’t afford to procrastinate. Please take action and get your Emergency Food Supply today.