Monday, February 21, 2011

Food Prices Rise to 'Dangerous Levels' World Bank Report Food Price Index Up 15 Pct

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Multisource political news, world news, and entertainment news analysis by Newsy.com

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Food Prices Rise to 'Dangerous Levels'

February 21, 2011
 
A report from the World Bank reveals rising food prices could cause major ripple effects in the global economy - especially for developing nations.

 BY JACQUELINNE MEJIA
Anchor: Austin Kim
You're watching multisource business video news analysis from Newsy

If the saying is - ‘you are what you eat’ - what are you if you have nothing to eat? That may be the predicament facing tens of millions of people in developing countries after a 15 percent food price index increase - a rise the World Bank says hits ‘dangerous levels’.

We’re analyzing coverage from CNN, The New York Times, Slate, Xinhua, BBC and the Jamaica Observer on the global food crisis.

A reporter for CNN discusses some of the issues behind the rising food prices.

“But what are the reasons? Analysts say the weather is one, demand for biofuel is another, and a major concern - rapid growth in emerging markets that has been driving up demand.”

With oil prices going up, prices are also spiking in biofuels like ethanol. A guest contributor for The New York Times says - corn’s high price causes a domino effect in the commodities market.

“High corn prices cause higher meat, dairy, wheat and soy prices for consumers. Since last June, the corn price has doubled. [...] And because of increased demand for a dwindling amount of oil which costs more to produce, embedded energy costs in food are another huge driver of today's higher food prices.”

A writer for Slate says this rapid growth in emerging markets affects commodities along the food chain.

“[...] the simple laws of supply and demand are in play as well. In developing nations, more people are buying more food. Moreover, they are purchasing more meat, which requires not just the cow or pig, but the grain to feed it.”__________________________________________________________________________ __________________________________________________________________________

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