Why Did Global Food Prices Rise
Why Did Global Food Prices Rise? Why Did Global Food Prices Rise? There are many economic factors that lead to the increase in food prices globally.The case explains exactly “Why Did Global Food Prices Rise? ” and how the economic factors have impacted countries and world’s lack of food.The tariffs and subsidies give rise to the increasing global food prices.
This case also talks abut how the government policies may be an advantage for some domestic producers and the disadvantage to others.
The ones who benefit from the government policies to promote production of ethanol are obviously the ones producing ethanol because they are looking for more options to be able to make ethanol. The different types of raw materials that can be produced into a substitute for gas, can affect the price of all goods. The ones who benefit to place tariff barriers on imports of sugar cane are the countries that have a higher production of raw material because they will benefit from all of the production.
For example: corn and soybeans are mainly used as tangible means for biofuel. The more demand for ethanol and biofuels, the more it will increase our prices for foods. Sugar cane can also be used for biofuels, however due to the tariff barriers the price of sugar cane has increased and it can no longer compete with the subsidized corn and soy beans. The Poor are suffering worldwide as a result of these policies. Unfortunately some of them are unable to afford food.
Developed countries are usually giving the subsidies, so with the production of corn increasing rapidly for farmers to plant more of it the policies are beneficial to the developed countries. Consumers will suffer by paying more for corn as the demand for ethanol continues to increase. As well as Brazil, the sugar cane production suffers from the policies to promote the production of ethanol and the tariff barriers placed on sugar cane imports. If we accept that global warming is a serious problem, should we not be encouraging governments to… View Full Essay