Meat-Eating Chinese Major Reason of Global Food Crisis?

There’s an interesting opinion article in the New York times regarding the world’s food crisis. Different than the financial crisis and harder to find a solution to, author Paul Krugman offers several reasons as to why this food shortage is happening.

One major reason he states is China: "There’s the march of the meat-eating Chinese — that is, the growing number of people in emerging economies who are, for the first time, rich enough to start eating meat like Westerners. Since it takes about 700 calories’ worth of animal feed to produce a 100-calorie piece of beef, this change in diet increases the overall demand for grains."

Other reasons for the food shortage include naturally occurring events such as bad weather/droughts, and not-so naturally occurring events, such as bad policy-keeping.

Governments and private grain dealers used to hold large inventories in normal times, just in case a bad harvest created a sudden shortage. Over the years, however, these precautionary inventories were allowed to shrink, mainly because everyone came to believe that countries suffering crop failures could always import the food they needed.

The combination of emerging economies such as China, droughts, and poor enforcement of policies make an ideal environment for a worldwide food crisis. (Also, biofuels - They’re not such a good idea. When you try to make the world’s fuel supply by using the world’s food supply.)

In Japan, the effects are being felt as the prices of food increase, including the controversial increase of Kentucky Fried Chicken prices. Countless TV programs examining this issue are aired weekly, and many companies have been resorting to putting out expired foods to keep their prices competitive, including patisserie giant Fujiya.

The solution seems simple: enforce policies to keep grain supplies in check, and cut down on the world’s meat supply. But unfortunately these sorts of things are easier said than done, and until people change the way wealth is interpreted, it will be a harsh winter for us grasshoppers.

Cheap food, like cheap oil, may be a thing of the past.

Read New York Times' article HERE.