Higher Food Prices due to Climate Change

Written on February 19, 2007 by Max Oliva in Environment

Max Oliva, Associate Director, Social Impact Management
The Economist has just written an article which states that climate change may drive food prices higher. They are as always good in challenging the given views in order to strengthen the conversations. This impact has already been felt at economies such as the Mexican one, where the rise in the prize of corn (main ingredient in Tortillas) by more than 80 per cent has had political implications much larger than one would imagine.
Corn prices have started to move together with global oil markets, having a rising demand for ethanol and farmers turning fields over to filling US fuel tanks instead of Mexican tables.
Other agricultural products like wheat, which price has also risen by more than 40 per cent, is in part due to the drought in Australia. Soybean production may also be reduced by the incentive on farmers to rotate their crops to corn, given the high demand of the product, thus also increasing the prices of soybeans. It is this argument which the economist points out as increasing meat prices, for cattle and pigs which are fed on these products.
Arguments on not having enough land in the US to grow the required amounts of corn, and putting into question the environmental benefits of ethanol are discussed. As pointed out, it is very valuable to enrich the conversation, for global warming has no easy answer.


No comments yet.

Leave a Comment


We use both our own and third-party cookies to enhance our services and to offer you the content that most suits your preferences by analysing your browsing habits. Your continued use of the site means that you accept these cookies. You may change your settings and obtain more information here. Accept