Incoming Food Crisis
There is a food crisis coming, and we are not talking on a local or national scale. No, this will be a global crisis the likes of which we have never seen. It’s a predictable crisis, and it’s one that has already started. It’s one we haven’t seen the US or Australian governments address, despite a host of campaign promises from parties in both countries every year. This just seems to fly under everyone’s radar.
The crisis began due to extreme summer weather. We saw about 80% of the United States experience drought conditions just a few years ago, and that is going to catch up with everyone soon. Australia and Russia experienced drought then as well. What that drought did was completely waste some key crops. We are looking at low corn harvests and wheat harvests. We are also expecting to see major price increases in both corn and wheat. We have already seen some price jumps for both of these, and we can lump soybeans in there as well, as it is experiencing a low harvest that is worse than anything we have seen in decades. Increases in prices for grain mean higher overall food prices.
These are staple items that are used in the production of a lot of foods, and as they increase, so too will a lot of other food items. In developed countries, the higher grocery prices may be a burden, but for the most part, they are a manageable one. Typically, Americans only spend about 10% of their income on food, and that includes what they eat at home and in restaurants. Gallup polls show that Americans are spending less on food than they did decades ago. The food crisis is going to hit a lot harder in undeveloped countries. Places where food is already scarce and expensive will experience a whole lot more food scarcity and high grocery prices.
Most people in these developing countries spend the majority of their income on food, which generally consists of bread and other grain items.