Brace For Food Price Crisis

THE GUARDIAN:

Food price crisis feared as erratic weather wreaks havoc on crops

'What the world economy really needs right now is a break', one economist says, but instead it appears headed toward upheaval'

Freak weather in some of the world's vital food producing regions is ravaging crops and threatening another global food crisis like the price shocks that unleashed social and political unrest in 2008 and 2010.

As the US suffers the worst drought in more than 50 years, analysts are warning that rising food prices could hit the world's poorest countries, leading to shortages and social upheaval.

The situation has sparked comparisons to 2008 when high food prices sparked a wave of riots in 30 countries across the world, from Haiti to Bangladesh.

Researchers say rising food prices also helped trigger the Arab Spring in 2011.

Nick Higgins, commodity analyst at Rabobank, said: "Food riots are a real risk at this point. Wheat prices aren't up at the level they got to in 2008 but they are still very high and that will have an effect on those who are least able to pay higher prices for food."