Question:

What is the main drivers behind sky rocketing food prices at present?

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What is the main drivers behind sky rocketing food prices at present?

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3 ANSWERS


  1. Bad weather and diversion of food crops to biofuel use.


  2. Historically low food stocks

    Hoarding of grains by many food-producing countries

    Mismanagement and devastation of some food producing countries such as Zimbabwe and Iraq

    Waste of food as biofuel

    Increased expenses for producing food due to higher fuel and fertilizer prices

    Bad weather in some food-producing countries

    Monetary inflation and decreasing purchasing value of money

  3. There is no one main reason for the high food prices.  However, there are several causes.

    -Gas prices being high.  That makes it costly to move food around (trucks and planes).  So cost becomes higher.

    - Horrible weather. Storms, floods have destroyed some food supplies.

    - Maybe the use of well ethnaol for cars has also caused food prices to head up.  This is a debatable point and one that has caused arguments.  However, it is a theory and some believe that since ethanol is used in significant amounts for gas (clean gas) for cars, and not being used for food production (Not being used enough).  So, they believe that since ethanol is being used inefficiently, not enough food is made and prices are high.

    Those are the causes.  I'm not completely certain about ethnaol however- I still want to look at all arguments before I decide whether ethanol being used for vehicles has caused prices of food to go up.

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