Tuesday, April 29, 2008

Things To Come From Food Crisis

More rushed conferences and summits among regional players. DOHA antagonistic buggers to meet again and again only with a more conciliatory attitude this time. Hoarding will not just be by private sector but some governments will be doing that as well. Countries importing food will reduce import tariffs substantially - hmmm, I wonder why! Countries exporting may be raising export tax. Partly oil in 3 figures is to be blamed as they contribute to more expensive transportation and fertilizer costs. Biofuels now viable with fuel at staggering levels caused diversion of edible products into biofuels - not such a good idea now. Higher food prices have caused feedling livestock to be a huge burden, thus forcing many farmers to sell much of the livestock younger and cheaper - but the flip side a few months down the road is the lack of livestock. Governments to increase subsidy to farmers to keep farming, and keep the lid on controlled necessities - just more money to chase after a fixed amount of goods. Aid agencies will be begging for free food supply to poor nations. Riots over lack of food supply or excessive price increases will be daily news. Is this food crisis a fad? Egypt and Cambodia already banned rice exports. Any sign of bad weather will only heighten the crisis. Social unrest is already reported in Burkina Faso, Cameroon, Egypt, Indonesia, Ivory Coast, Mozambique, Senegal and Pakistan - expect more to join the list.

A looming food crisis = spiraling inflation = restrictive market policies = higher interest rates to curb spending = not so good for equities.

A looming food crisis = Mounting government subsidy = Controlled prices break loose = Social unrest & riots = not good for equities.

p/s photo: Joyce Sialni


doraiddd said...

woi doom and gloom prophet, its time for another food joint review-lar.

U've been depressing lately... (pics of bust-less women notwithstanding...)

To brighten up, i lecoman u Max's Kitchen along Jalan tung shin (parallel to jalan alor). Simple name but serious food.

AQW said...

also Bermuda & Onion...next to El Cedro. Nice deco..Price V reasonable...lunch there today and sadly we were the ONLY customers when i left at 2.30pm..

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