Less bang for your buck

Food companies have found a way to keep prices low --trimming packages or making containers smaller. Do you feel decieved?

Secret Report: bio-fuel caused food crises

Environmentalist groups pushed the idea of bio-fuels for decades and now that it has been implemented and turned into a global food crisis, you hardly hear a peep from any of them. This Guardian article relating to an unreleased World Bank report claims that bio-fuels have caused food prices to increase by 75%. While I do believe that bio-fuels have some responsibility for higher food prices, I think the 75% figure sounds rather high. In any case, it looks like the report makes U.S. policy to be less than desirable.

But here is my thought on all of this: Now that the world knows, and our government knows, that corn ethanol production is expensive and causes food shortages, how long will it take our federal government to correct this problem?

Monsanto vs. Whole Foods

The WSJ (subscription required) reported that aversion to genetically modified foods have fallen by the wayside as food prices around the globe have sky-rocketed. This is a pleasing trend since the fear of GMO’s is highly politicized and in my opinion, highly irrational. There is absolutely no evidence that genetically modified foods are harmful to humans despite all the ravings of environmentalists. Genetically modified foods are safe, cheaper, and will yield more staple crops needed by the world’s poor and hungry. Note that organic food providers haven’t fared very well as food prices have climbed; this goes to show that at this point, organic foods are essentially a luxury item for rich societies.

Mexico imposes price controls on food

I guess Mexican president Felipe Calderon has taken a cue from Venezuela’s Hugo Chavez and has decided to ruin his country’s food supply. How long before we start to read about shortages in some of the 150 foods targeted for price control? Well, at least this hapless experiment is set to lapse after six months:

Food manufacturers promised Mexico's government to freeze prices on more than 150 food products Wednesday to help families cope with rising costs.

President Felipe Calderon announced that prices for goods such as cooking oil, flour, canned tuna, fruit juices, coffee, ketchup and canned tomatoes will remain fixed until Dec. 31. (Read More)

Trade barriers blamed for high food prices

It’s becoming more popular in the U.S. to consider trade protectionism in the name of “fair” trade and alleged worker protection; The Democrats have justified a block a of free trade deal with Colombia under such dubious reasons. Yet, even the U.N. has recently admitted that trade barriers, and in a particular-- food prices, have an adverse effect on world food prices and the world’s poor. In the long run, trade protectionism and government subsidies to hand picked industries do more harm than good.

The House passes the farm bill

Cha-Ching!! Congratulations my fellow Americans! We get to subsidize big agricultural companies and millionaires for another five years! Woo-hooo!

They passed it with a veto proof majority, 318-106

HT: Andrew Roth

Anti-American protests and Food riots

From CSM: Amnesty International Report released Tuesday alleged that Islamist militants, as well as US-backed Ethiopian and Somali government troops, are committing widespread atrocities against civilians in the capital, Mogadishu. And a recent US strike against what it says was an Al Qaeda leader in Somalia has sparked further protests.

Comment: Food riots and anti-American protests are raging through Somalia. Inexplicably, while the average American is consumed by American Idol and gasoline prices, there are reports that U.S. backed government forces are committing atrocities in Mogadishu. Additionally, a recent U.S. bombing attack on suspected Al Qaeda militants has caused the sort of collateral damage that we can ill afford: This is yet another American foreign policy disaster in the making. Do not doubt that our ethanol subsidy to big agriculture and rising oil prices have a hand in all of this. I haven’t seen a whiff of reporting on any of this on my local news channel and I suspect there will be none until something terrible happens to our soldiers or American civilians operating in the region.