Egypt's CBE expects inflation to moderate in '24, significantly fall in H1-25    Egypt to host 3rd Africa Health ExCon from 3-6 June    Poverty reaches 44% in Lebanon – World Bank    Eurozone growth hits year high amid recovery    US set to pour fresh investments in Kenya    Taiwanese Apple,Nvidia supplier forecasts 10% revenue growth    EFG Holding revenue surges 92% to EGP 8.6bn in Q1 2024, unveils share buyback program    Egyptian military prepared for all threats, upholds national security: Defence Minister    Philip Morris International acquires 14.7% stake in Egypt's largest cigarette maker Eastern Company    Gold prices slide 0.3% on Thursday    US Biogen agrees to acquire HI-Bio for $1.8b    Body of Iranian President Raisi returns to Tehran amidst national mourning    Egypt secures $38.8bn in development financing over four years    Palestinian resistance movements fight back against Israeli occupation in Gaza    President Al-Sisi reaffirms Egypt's dedication to peace in Gaza    Egypt to build 58 hospitals by '25    Egypt's Health Minister monitors progress of national dialysis system automation project    Giza Pyramids host Egypt's leg of global 'One Run' half-marathon    Madinaty to host "Fly Over Madinaty" skydiving event    Nouran Gohar, Diego Elias win at CIB World Squash Championship    Coppola's 'Megalopolis': A 40-Year Dream Unveiled at Cannes    World Bank assesses Cairo's major waste management project    K-Movement Culture Week: Decade of Korean cultural exchange in Egypt celebrated with dance, music, and art    Empower Her Art Forum 2024: Bridging creative minds at National Museum of Egyptian Civilization    Egyptian consortium nears completion of Tanzania's Julius Nyerere hydropower project    Sweilam highlights Egypt's water needs, cooperation efforts during Baghdad Conference    Swiss freeze on Russian assets dwindles to $6.36b in '23    Prime Minister Madbouly reviews cooperation with South Sudan    Egyptian public, private sectors off on Apr 25 marking Sinai Liberation    Debt swaps could unlock $100b for climate action    Amal Al Ghad Magazine congratulates President Sisi on new office term    Financial literacy becomes extremely important – EGX official    Euro area annual inflation up to 2.9% – Eurostat    BYD، Brazil's Sigma Lithium JV likely    UNESCO celebrates World Arabic Language Day    Motaz Azaiza mural in Manchester tribute to Palestinian journalists    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Surging costs hit food in poor nations
Published in The Egyptian Gazette on 06 - 06 - 2010

Families from Pakistan to Argentina to Congo are being battered by surging food prices that are dragging more people into poverty, fueling political tensions and forcing some to give up eating meat, fruit and even tomatoes.
Scraping to afford the next meal is still a grim daily reality in the developing world even though the global food crisis that dominated headlines in 2008 quickly faded in the US and other rich countries.
With food costing up to 70 per cent of family income in the poorest countries, rising prices are squeezing household budgets and threatening to worsen malnutrition, while inflation stays moderate in the United States and Europe.
Compounding the problem in many countries: prices hardly fell from their peaks in 2008, when global food prices jumped in part due to a smaller US wheat harvest and demand for crops to use in biofuels.
Majeedan Begum, a Pakistani mother of five, said a bag of flour for bread, the staple of her family's diet, costs three times what it did two years ago in her hometown of Multan. She can no longer afford meat or fruit.
"My domestic budget has been ruined," said Begum, 35.
The UN Food and Agriculture Organisation's food price index ��" which includes grains, meat, dairy and other items in 90 countries ��" was up 22 per cent in March from a year earlier though still below 2008 levels. In some Asian markets, rice and wheat prices are 20 to 70 per cent above 2008 levels, it says.
Many governments blame dry weather and high fuel costs but critics in countries such as India, Argentina and Egypt say misguided policies are making shortages worse and collusion by suppliers might be pushing up prices.
No single factor explains the inflation gap between developing and developed countries but poorer economies are more vulnerable to an array of problems that can push up prices, and many are cropping up this year.
Farmers with less land and irrigation are hit harder by drought and floods. Civil war and other conflicts can disrupt supplies. Prices in import-dependent economies spike up when the local currency weakens, as Pakistan's rupee has this year.
Costs also have been pushed up by a rebound in global commodity prices, especially for soy destined for Asian consumption. That has prompted a shift in Argentina and elsewhere to produce more for export, which has led to local shortages of beef and other food.
The global financial crisis hurt food production in some countries by making it harder for farmers to get credit for seed and supplies.
In Mauritania in West Africa, rice prices doubled over the first three months of the year, according to the World Food Programme.
Over the same period, the price of corn rose 59 per cent in Zimbabwe and 57 per cent in neighboring Mozambique.
In Kinshasa in the Democratic Republic of Congo, Mami Monga pays $25 for a box of fish that cost $10 a year ago. The price of a 25-kilogramme bag of rice has doubled to $30.
"Today I am obliged to buy half the food I used to buy mid-last year," said Mami, a mother of five.
Kinshasa shopkeeper Abedi Patelli said prices rise when the exchange rate of Congo's currency falls. "But when our currency improves against the US dollar, prices don't fall," he said. "They remain steady."
WFP spokesman Greg Barrow said poorer countries can suffer a "ratchet effect" that locks in price rises due to high transportation costs and limited competition.
"Prices dropped fairly dramatically toward the end of 2008 on international markets but we found prices remained relatively high in many local markets in developing countries," said Barrow.
After the cost of food rises, "it tends to take a long time to go down," he said.
The FAO said the double blow of the global recession and high food prices has pushed 100 million people into poverty.
Opposition parties have organized protests in Pakistan. In Egypt, a 50 per cent jump in meat prices in recent weeks has helped to fuel demonstrations outside parliament over wages and other economic issues.
"I am afraid that I will wake up one day and not able to get enough bread for my 12-member family," said Aboulella Moussa, a doorman at a Cairo apartment building.
People interviewed in a number of countries said they are coping not just by cutting out expensive items but by eating less ��" a trend that has stirred concern about malnutrition.
In the 2008 inflation spike, WFP found families in some countries skipped meals or switched to eating corn husks or other low-quality produce. "Over the long term, this would lead to the effects of chronic malnutrition," Barrow said.
"It's expensive, so we eat less," said Seema Valmiki, 35, who is raising three children in New Delhi with her husband on his 6,000-rupee ($135) monthly income as a driver.
Valmiki can no longer afford meat, fruit or fish and has put off buying her children new school uniforms, toys and a bicycle.
"If we buy them fruit, we can't buy them food" like rice, dal and vegetables, she said.
In China, food costs rose 5.9 per cent in April over a year ago ��" a modest rate for a country that suffered 20 per cent-plus inflation in 2008. But it was enough to prompt the communist government to try to reassure the public with pledges that prices will ease as the spring harvest comes in.
It also threatened to punish price gouging in a new effort to cool inflation.
Even in moderately prosperous nations such as Venezuela, shoppers say they can no longer afford meat and scour markets for bargains.
In Argentina, soy production has taken over more than 32 million acres (13 million hectares) of grassland once used to raise cattle and replaced less profitable wheat and corn as well, driving up prices in supermarkets.
Argentina's government has responded with higher taxes, export limits, controls on supermarket prices of meat, wheat and corn, subsidies to food producers and pay hikes of 30 per cent for union workers.
The moves have temporarily eased the pain but beef producers have thinned their herds in response to government intervention and the price of meat has doubled in the last year.
"Before, we would eat meat three times a week. Now it's once, with luck," said Marta Esposito, a 45-year-old mother of two in Buenos Aires. "Tomatoes, don't even talk about it. We eat whatever is the cheapest."
Venezuela's 30.4 per cent inflation is among the world's highest. The oil-rich country is a major food importer and its bolivar has tumbled against the dollar, forcing up prices in local markets. In April, food prices rose 11 per cent over the previous month.
The Venezuelan government has imposed price controls and arrested some shopkeepers for violating them. But the controls have led to shortages of beef, sugar, corn meal and butter, forcing the government to allow some prices to rise by 20 per cent this year.
Elsewhere, rising prices highlight a more basic problem: making sure farm productivity keeps pace with burgeoning populations.
India's food prices were up 17 per cent in April over a year earlier but the government hopes normal rainfall this growing season will increase supplies.
The rise has been driven in part by growing demand from the rural poor, who can afford to spend more on food thanks to government debt-relief and job-creation programmes.
Longer term, experts say India, with more than 1 billion people, has to speed up growth in farm production if it is to keep up with demand.
"Our capacity to feed every Indian is systematically declining with time," said Harsh Mander, who was appointed by India's Supreme Court to monitor hunger. "World markets can't bail us out."


Clic here to read the story from its source.