Introduction

■The years 2007–2008 saw dramatic rises

in world food prices, creating a global
crisis and causing political and economical
instability and social unrest in both poor
and developed nations.
■ More than 6 billion people living in the world today. The
total number of food insecure people who are
malnourished or lacking critical nutrients is probably
closer to 3 billion—about half of humanity

■ According to the U.S. Department of Agriculture, over 35

million people lived in food-insecure households,
including 13 million children. Due to a lack of food adults
living in over 12 million households could not eat
balanced meals.
■ world hunger crisis continues to worsen as many of the
communities in which we work struggle with daily hunger
and starvation.

■ The basic staples that feed the world wheat, rice and
corn continue their inexorable rise in cost and scarcity.

■ Food crisis result of biofuels, low cereal stocks, high oil

prices, speculation in food market and extreme weather
events.

4
■ experts have placed the blame on rising fuel costs, lower
agricultural production, weather shocks, more meat
consumption, and shifts to bio-fuel crops.
■ High prices threaten to increase malnutrition, already an
underlying cause of death for over 3.5 million children a
year.

5
 What we do know:

■ Wheat prices are up 120%

■ Rice prices have risen 75%
■ Poor families spend up to 80% of their budget on food
■ According to the World Bank, an estimated 100 million
people have fallen into poverty in the last 2 years
■ Prices are expected to stay high through 2015
■ 21 of 36 countries in a food security crisis are in Sub-
Saharan Africa, according to the United Nations FAO
■ West Africa, the Horn of Africa, and fragile states are
especially vulnerable

6
WORLD POPULATION IS GROWING & FOOD DEMAND IS INCREASING.
In 1988 (20 Years Ago) world population stood at 5.2 Billion
and currently
It stands at over 6.5 Billion People.( a Significant Increase)
meanwhile food
demand has soared meeting Population Growth, but the Agricultural
Industry has
seen tremendous challenge over the last 5-10 years due to direct
Competition
from growing industrialization and the Renewable fuel market.

The World Bank predicts that food demand will double by 2030, and
Look at the food they bought for
one week and the number of
persons in the family
Haiti food riot, April 2008
Haiti food riot, April 2008
Pakistani women buy subsidized flour in Lahore. The price of staple foods
and fuel has risen drastically in the country in the last few months. Many
people in Pakistan are now dependent on state subsidies.
In Manila, the capital of the Philippines, soldiers stand guard during
the sale of government rice. With the price of rice soaring, the
government is looking at ways to ensure none of its citizens starve.
Bangladesh: Food queues have
become longer as prices have gone
up. Fights over food frequently break
out in the queues.
FACTOR OF FOOD CRISIS
 WORLD Food Prices Biofuels
POPULATION Increase
Growth disaster

FACTOR
OF FOOD
CRISIS

Global
Distorted
Fresh Water Warming
Global Rice
Shortage and Natural
Market
Disaster
WORLD POPULATION GROWTH.
World historical and predicted populations
(in millions)
■ UP to 100 million people are being added to the world's
population each year
■ In Mexico, population has grown from 13.6 million in
1900 to 107 million in 2007.
■ U.S. population grew by 2.8 million between July 1,
2004, and July 1, 2005.
■ The world's population, on its current growth trajectory, is
expected to reach nearly 9 billion by the year 2042
■The gradual change in diet among
newly prosperous populations.
■utilization growth has been
greatest in non-food usage.
■Increase the middle class grew
■1990 (9.7% in India & 8.6% in
China) 2007 (30% and 70%)
■The corresponding increase in
affluence has also brought with it a
change in lifestyle and eating
habits, particularly a demand for
greater variety, leading to greater
demand for agricultural resources.
■This demand exacerbates dramatic
increases in commodity prices, such
as oil
Food Prices Increase
The World Bank reports that global food prices
rose 83% over the last three years .
■ The World Bank reports that global food prices rose 83% over
the last three years and the FAO cites a 45% increase in their
world food price index during just the past nine months.
■ The Economist’s comparable index stands at its highest point
since it was originally formulated in 1845. As of March 2008,
average world wheat prices were 130% above their level a year
earlier, soy prices were 87% higher, rice had climbed 74%, and
maize was up 31%.
Eric Holt-Giménez and Loren Peabody, From Food Rebellions to Food
Sovereignty: Urgent call to fix a broken food system, Institute for Food and
Development Policy, May 16, 2008
■ The international prices for the major
food grains have decreased almost
just as dramatically as they had
increased. Expressed in US dollars
per metric tonne, and based on
prices at the time of writing, the
prices of:
■ rice fell from its May 2008 peak by
59%;
■ maize fell from its June 2008 peak by
43%;
■ soybean fell from its July 2008 peak
by 77%;
■ wheat fell from its February 2008
peak by 53%.
■ In addition, oil prices have also
declined dramatically. Expressed
in US dollars per barrel, oil prices
dropped by about 65% from their
July peak in 2008 (based on the
price of Brent crude oil).
■ Nevertheless, international grain
prices remain high compared to
their historical averages:
■ rice in March 2009 is 49% above its ten-year
average;
■ maize in April 2009 is 43% above its ten-year
average;
■ soybean in March 2009 is 36% above its ten-year
average;
■ wheat in April 2009 is 31% above its ten-year
average.
Figure 1. Rice prices, January 1989 to
March 2009
Figure 2. Maize prices, January 1994 to April
2009
Figure 3. Soybean prices, January 1994 to March
2009
Figure 4. Wheat prices, January 1998 to April
2009
 Figure 5. Oil prices, January 1998 to April
2009
Note: Oil prices refer to Brent, US dollars per barrel.
■ High food costs 'a global burden'
■ The Philippines is one of the
countries hardest hit by higher
food prices
■ Almost two-thirds of people - 60%
- in 26 countries say higher food
and energy prices this year have
affected them "a great deal", a
BBC report has found.
■ The BBC World Service global study said that while all
nations had felt the burden of the higher costs, the
problem was most acute in poorer countries. .
■ Elsewhere, the aid agency Oxfam said, more than 900
million people faced starvation because of soaring
prices.
■ A report by the UK-based charity also found that
spiralling inflation in the cost of basic foods such as
rice and cereals had pushed an extra 119 million
people into hunger this year.
■ The study found that many people in the
developing world have simply been forced to eat
less this year owing to the higher cost of food.
■ This situation was most acute in the Philippines
and Panama, where 63% of respondents said
they had cut back on what they ate.
■ Kenya was the next most affected, with 61% saying
they were eating less, followed by Nigeria, at 58%.
■ Across all 26 countries, 43% of people said they had
altered their diet
■ This was most apparent in Panama, with 71%
switching to cheaper foods, followed by Egypt, 67%,
Kenya, 64%, and again, the Philippines, 63%.
 Biofuels
■ One systemic cause for the price
rise is held to be the diversion of
food crops for making first-
generation biofuels.
■ An estimated 100 million tones of
grain per year are being
redirected from food to fuel.
■ Land and resources available for
food production were reduced
correspondingly
■ Filling a tank of an average car
with Biofuel, amounts to as much
maize as an African person
consumes in an entire year.

■ A World Bank policy research

working paper released in July
2008 concluded that "...large
increases in biofuels production
in the United States and Europe
are the main reason behind the
steep rise in global food prices”.
■ On April 29, 2008, U.S. President
George W. Bush declared that
"85% of the world's food prices are
caused by weather, increased
demand and energy prices", and
recognized that "15% has been
caused by ethanol”
■ On July 4, 2008 World Bank report
estimated the rise in food prices
caused by biofuels to be 75%.
■ Oil price increases since 2003 resulted
in increased demand for biofuels.
■ Transforming vegetable oil into
biodiesel is not very hard or costly so
there is a profitable arbitrage situation
if vegetable oil is much cheaper than
diesel.
■ Farmers can switch to growing
vegetable oil crops if those are more
profitable than food crops. So all food
prices are linked to vegetable oil
prices, and in turn to crude oil prices.
■ A World Bank study concluded that oil
prices and a weak dollar explain 25-
30% of total price rise between
January 2002 until June 2008
■ In Germany and Canada it is now
much cheaper to heat a house by
burning grain than by using fuel
derived from crude oil.
■ With oil at $120/barrel a savings of a
factor of 3 on heating costs is
possible. When crude oil was at
$25/barrel there was no economic
incentive to switch to a grain fed
heater
■ Since April, all petrol and diesel in
Britain has had to include 2.5% from
biofuels. The EU has been considering
raising that target to 10% by 2020, but
is faced with mounting evidence that
that will only push food prices higher.
■ "Without the increase in biofuels,
global wheat and maize stocks would
not have declined appreciably and
price increases due to other factors
would have been moderate,"
report by Internal World Bank
■ The basket of food prices
examined in the study rose
by 140% between 2002
and this February.
■ Report by Internal World
Bank estimates that higher
energy and fertilizer prices
accounted for an increase
of only 15%, while biofuels
have been responsible for
a 75% jump over that
period.
■ It argues that production of biofuels has distorted
food markets in three main ways.
■ First, it has diverted grain away from food for fuel,
with over a third of US corn now used to produce
ethanol and about half of vegetable oils in the EU
going towards the production of biodiesel.
■ Second, farmers have been encouraged to set land
aside for biofuel production.
■ Third, it has sparked financial speculation in grains,
driving prices up higher.
■ "It is clear that some biofuels have huge impacts on food
prices," Dr David King, the government's former chief
scientific adviser

■ The German Development Minister Heidemarie

Wieczorek-Zeul said in Washington at a World Bank
meeting that “Increasing production of biofuels was 30
to 70 per cent responsible for the rapid rise in food
prices.”

■ Thai Prime minister Samak Sundaravej, whose country

is a large producer and user of biofuels lashed out at the
World Bank over its claim of biofuels causing food
shortages
 Fresh Water Shortages

■ Fresh water is a finite

resource
■ The amount of fresh water
supply provided by the
hydrological cycle does not
increase.
■ Humans share the Earth
with other creatures who
also need water, therefore,
a water shortage is also a
crisis for wildlife
■ Two principal signs of
stress as the demand for
fresh water outruns the
supply

(i) Rivers are running dry.

(ii) Water tables are falling

on every continent
 Rivers are running dry
■ Many major rivers—including the
Colorado, Ganges, Indus, Rio
Grande, and Yellow—are so over-
tapped that they now run dry for
part of the year.
■ Freshwater wetlands have shrunk
by about half worldwide.
■ In 1972, the Yellow River in China
failed to reach the sea for the first
time in history. That year it failed
on 15 days;
■ every year since, it has run dry for
a longer period of time, until in
1997, it failed to reach the sea for
226 days.
.
■ The story is similar with all of
China’s rivers. China has
almost one-quarter of the
world’s population, but only 6
percent of its fresh water.
■ In addition, these rivers are
replenished by the glaciers in
the Himalayan Mountains—
but these glaciers are all
disappearing
 ii. Water tables are falling on every
continent
■Aquifer depletion is a new problem.
■Water tables are falling from the over-
pumping of groundwater in large
portions of China, India, Iran, Mexico,
the Middle East, North Africa, Saudi
Arabia, and the United States.
■India has the highest volume of
annual groundwater overdraft of any
nation in the world.
■ In most parts of the country, water
mining is taking place at twice the
rate of natural recharge, causing
aquifer water tables to drop by 3
to 10 feet per year.
■ This enormous shift from
sustainable water use to over-
mining began when farmers
changed from having oxen
withdraw the water from a well, to
using electric or diesel-driven
motors.
 Seventy percent of all the fresh
water is used for irrigation
■ agriculture uses the largest
amount of freshwater (70%)

■ 40 percent of the world grain

harvest is produced on
irrigated land, t herefore, a
water shortage will become a
food shortage
■ Countries are importing grain as a way to import
water.
■ It takes 1000 tons of water to grow one ton of grain.
■ On the other hand, exporters of grain are exporting
water. (The U.S. annual grain exports of 90 million
tons of grain represent 90 billion tons of water, an
amount that exceeds the 67-billion-ton annual flow of
the Missouri River. )
■ Producing one ton of grain requires 1000 tons of
water, but producing one ton of beef requires 15,000
tons of water, (and nearly that much is required to
produce a ton of cotton).

■ Producing wheat or soybeans requires only 2% of

the water required by beef.
water shortages -- creating higher food
prices and food shortages everywhere.
 Global Warming and Natural disaster

■ Several distinct weather and

climate change have to led to
slow down in the growth of
agricultural production.
■ The most influential is the
extended drought in Australia
( Murray- Darling Basin) in 2006
■ The drought has caused the
annual rice harvest to fall by as
much as 98% from pre-drought
levels.
Rice Production in Thousand Tons (Australia)
■ Australia is historically the second-
largest exporter of wheat after
United states, producing up to 25
million tons in a good year, the
vast majority for export.
■ In year 2006 , the harvest was 9.8
million because of drought.
■ Other events that have negatively
affected the price of food include
2006 heat wave in California’s San
Joaquin Valley which killed larges
number of farm animals
■ Unseasonable 2008 rains in Kerala, India,
which destroyed swathes of grain.
■ Scientists have stated that the several of
these incidents are consistent with the
predicted effects of climate change.
■ In May 2008, the effects of Cyclone
Nargis on Burma caused a spike in the
price of rice.
■ Burma has historically been a rice
exporter, though yields have fallen as
government price control have reduced
incentives for farmers.
■ The storm surge inundated rice paddies up to 30
miles(48km) inland in the Irrawaddy Delta, raising
concern that the salt could make the fields infertile.
■ The FAQ had previously estimated that Burma would
export up to 600,000 tons of rice in 2008.
■ But concerns were raised in the cyclone’s aftermath
that Burma may be forced to import rice for the first
time, putting further upward pressure on global rice
prices.
 Distorted Global Rice Market

■ World production of rice has risen

steadily from about 200 million
tonnes of paddy rice in 1960 to 600
million tonnes in 2004.
■ Milled rice is about 68% of paddy
rice by weight.
■ In the year 2004, the top four
producers were China (26% of world
production), India (20%), Indonesia
(9%) and Bangladesh.
■ World trade figures are very different, as only about 5–
6% of rice produced is traded internationally.
■ The largest three exporting countries are Thailand (26%
of world exports), Vietnam (15%), and the United States
(11%), while the largest three importers are Indonesia
(14%), Bangladesh (4%), and Brazil (3%).
■ Although China and India
are the top two largest
producers of rice in the
world, both countries
consume the majority of
the rice produced
domestically leaving little
to be traded
internationally.
■ In March to May 2008, the
price of rice rose greatly due
to a rice shortage.
■ In late April 2008, rice prices
hit 24 cents a pound, twice
the price that it was seven
months earlier.
■ On the 30th of April, 2008,
Thailand announced the
project of the creation of the
Organisation of Rice
Exporting Countries (OREC)
with the potential to develop
into a price-fixing cartel for
rice.
■ Consumption of rice by country—2003/2004
(million metric ton)
■ Between 1961 and 2002, per
capita consumption of rice
increased by 40%.
■ Rice is the most important crop in
Asia. In Cambodia, for example,
90% of the total agricultural area
is used for rice production.
■ U.S. rice consumption has risen
sharply over the past 25 years,
fueled in part by commercial
applications such as beer
production.
■ Almost one in five adult
Americans now report eating at
least half a serving of white or
brown rice per day.
■ Japan is forced to import
more than 767,000 tons of
rice annually from the United
States, Thailand, and other
countries due to WTO rules.
■ This is despite the fact that
Japan produces over 100% of
domestic rice consumption
needs with 11 million tonnes
produced in 2005 while 8.7
million tonnes were
consumed in 2003-2004
period.
■ Japan is not allowed to re-
export this rice to other
countries without approval.
■ This rice is generally left to
rot and then used for animal
feed.
■ Under pressure, the United
States and Japan are
poised to strike a deal to
remove such restrictions.
■ It is expected 1.5 million
tonnes of high-grade
American rice will enter the
market soon.
Effect From The Food Crisis Issues
 1. Food price hike
■ This is due to the food
has been use as the
alternative fuel and the
rise of the energy cost.
■ The hike intend to
increase the inflation
level especially for the
non OECD countries
from 5%(2006) to 8.1%
(2008)
■ April 24, 2008 “Press conference by world food
programmed executive director on food price crisis”
confirm that food price hike 55% from June 2007 to Feb
2008 and 87% increase in the cost of rise in March.
■ This spike food price plunge household in developing
country into serious poverty.
– Developing countries spend 70% of income on food
– Industrial country spend 18% of income on food
 2. Increasing number of poverty
■ Food crisis tend to rise up the food price and cause the
level of poverty line increase. The poorer family will
become victims of the deep poverty
■ How it being measured
– Poverty level VS average poor house hold
• (88% increase in poverty level with only 12% of family fall
into deep poverty)
 3. Healthy level decrease
■ How? Food price hike tend to change the fix income
household family to adapt with the changes.
■ Buy the cheaper food to survive or change the eating
habits(reduce food consumption).
■ Lead to the less nutritious food and impact the body
healthy. Because great mind come from the great
body(healthy body)
■ Permanent malnourished
 4. Risk to schooling
■ The intension to get more money to buy food is the top
priority of the poor families.
■ This lead to change mind set to go working at the
younger age so that it can fill up their stomach rather
than fill up their mind with education.
■ Education is not important for these poverty communities
as they have to survive with their own life.
 5. Inflation increase
■ Low-income countries face inflationary pressure and
rising import bills – both of which undermine economic
growth and development.
■ FAO estimates that food import bills for developing
countries rose by 25% in 2007 (Shapouri and Rosen,
2008).
■ Food aid is programmed by budget, not volume, rising
prices depress supply. (demand is higher than supply)
Action By Individual Goverment
1. Brazil
ü Announced a temporary ban on the export of rice
ü Protect domestic consumers

2. Burkina Faso
ü Earlier food riots took place in on
ü Broke in the country's second and third largest cities
ü Food prices increase up to 65%
ü Soldiers were mobilized throughout strategic points at its capital
ü Over 100 people were arrested in one of the towns
ü Government promised to lower taxes on food and to release food
stocks.
3. Cameroon
Reduction in import taxes on foods
Agreement with retailers
§ Retailer lower food prices, government reduced import taxes
Announced two-year emergency program:
§ Double Cameroon's food production and achieve food self-
sufficiency

4. India
Banned the export of rice
5. Mexico
Freeze prices of more than 150 consumer staples
Attempt to control inflation

6. Panama
Government buying rice at the high market price and selling rice
to the public at a lower subsidized price at food kiosks.

7. Russia
Pressured retailers to freeze food prices before key elections
from October 2007 till May 1, 2008.
8. United State of America
US$200 million support poor farmers boost food production
Congress to approve an extra $770 million funding for
international food aid

9. Japan
Release of rice reserves onto the market
As of May 16, lowered prices by 14% in a single week.
10. Thailand
Creation of the Organization of Rice Exporting Countries (OREC)
Potential to develop a price-fixing cartel for rice

11. Food and Agriculture Organization

Jun, 2008 hosted a High-Level Conference on World Food
Security
$1.2 billion in food aid was committed for the 75 million people in
60 countries

12. At the same month, a sustained commitment from

the G8 was called for by some humanitarian
organizations.
 G8 Summit
 Toyako, Japan Summit from 7 to 9 July 2008
 discussed to step up an emergency assistance to the 850 million people who
are suffering from hunger.

Increasing public investment in research and development on

ecological and climate change-resilient farming
Stopping funding for Genetic Engineering (GE) crops and prohibit
patents on seed
Phasing out the most toxic chemicals in agriculture and
eliminating environmentally destructive agricultural subsidies
Protecting domestic food production through trade agreements
Dropping mandatory targets to increase the ratio of biofuels used
in transport
Action Taken To Counter The Food Crisis
Issues 2009
■ Food and Agriculture Organization of the United Nation
(FAO) will organize a forum “ HOW TO FEED THE
WORLD IN 2050” on 12 to 13 October 2009 in Rome.

– Will we be able to produce enough food at affordable prices or

will rising food prices drive more of the world's population into
poverty and hunger?
– How much spare capacity in terms of land and water do we have
to feed the world in 2050?
– Are we investing enough in research and development for
breakthroughs to be available in time?
– Will new technologies be available to the people who will need
them most - the poor?
– How much do we need to invest in order to help agriculture
adapt to climate change, and how much can agriculture
contribute to mitigating extreme weather events?
 News 19 Jully 2009:
Leagues Reinforce Committement to Fight Against Global
Hunger
On the occasion, The EPFL
representatives had the
opportunity to review the
outstanding impact of
the Professional Football
Against Hunger
Campaign in raising
awareness through football
stadiums and media and
reaching the hearts and
minds the international
community about the
devastating problem of
hunger.
 World Food Day, 16 October 2009
Theme: "Achieving food security in times of
crisis"
With an estimated
increase of 105
million hungry people
in 2009, there are
now 1.02 billion
malnourished people
in the world, meaning
that almost one sixth
of all humanity is
suffering from hunger.