Fear of food crisis

Poor harvests and export markets, and governments stop worry
While citizens in wealthy countries, the cost rising agricultural prices, only a few euros in the week, the price increase, people in poor countries in Africa cost the life. Photo: dpa cost while citizens in wealthy countries, increases in agricultural prices, only a few euros in the week, can cost the price increase, people in poor countries in Africa's life. Photo: dpa

Environmental disasters in several countries threaten the cereal crops. Agricultural products are dramatically more expensive - and scarce?

Frankfurt. It is uncanny: Commodity prices are rising dramatically - even though the economy is not yet in full swing. The commodity index (excluding energy) of the Hamburg Institute of International Economics (HWWA) has already exceeded its expected in € highs of summer 2008.

The scene evokes memories of the spring of 2008: Then, too, were oil, metals and agricultural raw materials have become extremely expensive, particularly, in countries such as Mexico, Bangladesh and Haiti, it came to food riots. Even now, in certain states again the fear from political turmoil.

World Bank warns

On the agricultural market, the situation is after the sanctions imposed by Russia last week, grain export ban particularly critical. The World Bank has warned major wheat exporters about to impose export bans. Otherwise it could lead to a new food crisis, "said World Bank Director Ngozi Okonjo-Iweala. The severe drought in several regions could induce countries to follow Russia's example and restrict exports. The World Food Programme (WFP) already a dangerous price spiral.

Cause for concern about a food crisis, as it had been in 2008, are dramatic crop failures in several major producing countries. In particular, Russia, the world's third largest producer Wheat because of drought and forest fires, a crop-drop expected by 20 percent. Consequently, Prime Minister Vladimir Putin announced a ban on exports of wheat, which could take at least until the end of the year.

Ukraine and Kazakhstan, another major wheat exporters are also affected by the drought and fearing a similar large declines of their crops. Also in Western Australia threatens the continuing drought, the local wheat production. However, some countries are facing the opposite problem. So threatening floods in Pakistan, India and China as well as unusually high rainfall and humidity in Canada's wheat production in other major producing countries.

As a result of harvest-related problems, the price of wheat has doubled in a month. The World Bank is so concerned that it announced to reactivate in the case of a growing shortage of wheat a food fund.

The Fund was created in 2008 to assist developing countries in purchasing and production of food. Currently, 615 million are the equivalent of € in the Fund.

Countries hoard food

Although see commodity analysts at Bank still no dramatic crisis, "said World Bank Director Okonjo-Iweala, but warned," can understand Though, why introduce governments have a policy that is good for their own countries, are practices such as export bans not always the best way. It affects the market and lead to countries hoard their food. "