Food riots!!!

[furrowtickler]

Alot of attention over food shortages showing up over the last few weeks. Ethonal is getting bashed as a culprit/cause. The fact is that the world has been stealing wheat and rice from farmers for more than a decade and we as farmers have responded by lowering and/or not keeping pace with demand. Wheat and rice - the two main food staples globaly, have almost zero to do with ethonal production. The nations the have food problems are not starving of corn or meat. The market itself is to blame for keeping wheat/rice prices below the cost of production, thus not alowing production to keep pace with demand. The razor thin inventories and just in time stocks finaly bit the buyers in the a$$ when a few major exporters had production problems. Bio-fuels have very little to do with the current food shotages. The average farm in Western Canada grew 50-60% wheat a decade ago, now I would say less than 30% goes into wheat IMO. Wheat up until the last few months has been the biggest looser on most farms. The market itself should look in the mirror - this is the real reason for the current food shortages.

[food4u]

I agree with you 105 percent.... I have said for years that this habit of just in time deliveries would come back to haunt the wheat users and now it has happened.

[agstar77]

Just in time is fine for cars and widgets, but when it is food there is no leeway. Farmers should be paid for food storage and yes overproduction. The problem is how do tou balance food security with a fair rate of return? The market place will work eventually , but when there is a 6 month time delay? Some of you can make light of this problem, but that won't make it go away. You don't think this affects you? If 1.3 B Chinese ask for food , will you say no?

[melvill]

I don't usually wax philosophical but this is something that I've been wondering about for a while. Will the possible or perceived or real, in some places, food supply shortages result in significant social unrest that will eat up producers' improved profits through higher taxes for more military spending or higher costs to improve security. Just wondering???

[agstar77]

We have gun laws, to hard to get a license.

[SASKFARMER3]

I to have said the just in time attitude is going to have people going hungry.
We as farmers were stupid to listen to the experts. "Wheat is a buy product their is always some coming on stream somewhere in the world"
Now their bashing the ethanol, what a crock.
Why not pay me for my product a decent price.
HM

[furrowtickler]

I would say there are 3 bill people of all nationalities asking for food and yes this will affect all farmers - already has. If the wheat/rice buyers accross the globe would have sent the proper market signals even two years ago - this would hardly be an issue. Bio-fuels would not be on the hit list. Eevery farmer knew that the supply situation was heading for a pinch point, this was going to happen sooner than later. The market including the CWB should have stepped up to the plate last year and provided the proper market signals to grow more wheat. Just as an example the 05 to 07 early spring PRO's were dismal at best considering the already tight world supplies and record low s/u ratios. hopefully this is a slap in the back of the head for wheat/rice buyers not to treat farmers as welfare cases.