i figured since all of my posts have painted this picture of steve running off to australia to leave everyone behind to go to concerts, take long hikes, attend wine tastings, and swim at the beach all the time ... i thought i would actually pull back the blinds of my delusional existence of extreme enjoyment and show you the bitter reality of what my life consists of for a majority of the time...
i am writing this right now in the place where i spend most waking hours, fisher library. I am currently staying 'hip' and 'down with it' by carving out a space in the undergrad section near a window that looks out on this glorious fall day in sydney, but I can only observe the day and the care free attitudes that taunt me from outside while I struggle to chip away at my work load.
the project that is consuming me (and that you are about to read about) right now is due on monday and is an event brief (think of an article from the economist) examining and analyzing the sudden increase in the price of thai rice that has been taking place over the past 3 months and hit a record 30% price increase in just one day of trading last week.
the price of thai rice which is used as a de facto global price benchmark was sitting a tad under $400 a metric ton at the turn of the new year. since january the price has for a lack of better words, skyrocketed without looking back. last weeks trading (after the 30% spike) closed at $760 a ton with the projection that it was still heading up with india, the second largest exporter behind thailand, stating that it was going to raise the price of indian rice exports up to $1,000 a ton in hopes to push local producers to sell locally thus ensuring stability in their domestic rice market. this set off a chain reaction with other large exporters (egypt, cambodia, vietnam) placing export tariffs on rice hoping to curb domestic inflation in their rice markets while trying to maintain a social balance for their respective inhabitants who rely so heavily on the staple grain.
'so what steve? the price of my burrito from chipotle and the price of my sushi hasnt gone up, i could care less.'
fair call. and dont worry you wont see chipotle or san sushi too jacking up its prices anytime soon. america is protected by our domestic rice growth. thanks arkansas. but the rising demand for ethanol might force some rice farmers to switch to a ethanol friendly crop, and then i would suggest switching to the fajita burrito or eating more sashimi.
BUT, like most global situations this has a major effect on people we dont think about most of the time. there are 2.5 billion people in the world who rely on rice as a vital building block for their food intake. that means if there is continued inflation in these markets you will see people starving in places like indonesia (population +/- 235 million), bangladesh (pop. +/- 150 million), and the phillipines (pop. +/- 90 million) where the country's consumption far out weighs its production.
This is already been brought to the world's attention when the WFP (UN's World Food Programme) came out 2 weeks ago and said that they are over $500 million short of funds to meet the global demand for food aid, and they have deemed the rising price of grains as a key reason for the budgeting shortfall.
think about it.
No comments:
Post a Comment