Food Price

In: Business and Management

Submitted By kachun126
Words 334
Pages 2
Global Food Prices
Case study why did global food prices rises.
1. The farmer benefits from the government policies to promote production in ethanol because it created a incentive for farmers to plant more crops that can be turned into biofuels, and also farmers receive subsidies from the government between .29 to .36 per liter of ethanol. Placing a tariff on imports of sugar cane hurts the producers of sugar cane, and consumer of sugar cane such Brazil and typical consumers because nations such as United States tariff is 25 % of the value, and Eu tariff is 50 % of tariff. Now consumer must pay much more, and Brazil is left uncompetitive in the bigger markets. The final consumer and producer of sugar cane which is Brazil suffers the most from those policies.
2. If food prices are projected to raise to 1/3 of the price, reducing living standards in rich countries by about 3 %, and in poor countries by
20% , products such as cereal rising 10 to 20 % by 2015, and biofuel production reducing calorie intake by 2 to 8 % by 2020 in many of the world`s poorest country this is huge so rich countries should definitely do something, because the balance in the economy between the rich and poor will shift greatly with more poor`s in developed nations. An in the poor nations with calorie intake increasing the demand for food will continue to rise eventually until poor nations can`t afford it and a large amount of their population dies from starvation. So this issue creates starvation, increase poverty, and increase food prices.
3. If ethanol results in lower CO2 emissions than gasoline and benefits the environment, and as a nation we accept global warming is a serious problem I think we shouldn’t be encouraging the government to increase subsidies because the way the government is going about the subsidies is rewarding farmer to produce less food
and…...

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