The Oil Drum | DrumBeat: October 30, 2007

287 comments on DrumBeat: October 30, 2007

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eric blair on October 30, 2007 - 9:04am

Food:
http://www.channelnewsasia.com/stories/afp_world_business/view/308352/1/...

LONDON : Some countries may have to implement retail price controls on food in the near future because of rising prices for consumers, the UN's food chief said in an interview published Monday.

http://www.medicalnewstoday.com/articles/86972.php

Early results of a 12 million pound, 4-year EU study on the benefits of organic food suggest that some of them, such as fruit, vegetables and milk, are more nutritious than non-organically produced food and may contain higher concentrations of cancer fighting and heart beneficial antioxidants.

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PeakTO on October 30, 2007 - 9:54am

Some more on Food:

Poor outlook for grain stokes fight over biofuels

http://www.smh.com.au/news/national/poor-outlook-for-grain-stokes-fight-...

FOOD producers who rely on feed grain stepped up their attack on biofuels yesterday as the forecast for Australia's grain harvest was slashed by another 4.5 million tonnes after two more months of exceptionally warm, dry weather.

The dairy, pork, egg and feedlot beef sectors said the global demand for grain to produce ethanol was causing record grain prices, food inflation and job losses.

-snip-

Ethanol industry supporters argue that grain prices have been unrealistically low for decades and the grain shortage is due to the weather.

Contains updates on Australian grain output.

Hoarders create artificial shortage to raise flour rates

http://thepost.com.pk/CorpNewsT.aspx?dtlid=125839&catid=8

Hoarders have stocked over 1 million tonne wheat to create an artificial shortage and raised prices of the commodity, officials said.

-snip-

The price of wheat is $ 200 per tonne in Pakistan whereas the price of wheat in international market is around $ 400 per tonne. This gave economic justification to smugglers to send wheat through illegal ways to India, Afghanistan and Central Asian Republics

How long do you think these many countries can keep these prices low internally?!

Arbitrage is part of a free market system. If a farmer that makes only $200 per year can make $400...I bet he will go to great lengths to get it to a stronger market.

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mcgowanmc on October 30, 2007 - 10:23am

The SMH article refuses to break out the grains number ,
lumping barley, canola in with wheat.

But the 4.5 million ton drop would bring the wheat crop down to 9.5 million tons if the Ozzies are using the 13.5
million ton number.

The Oil Drum | World Energy and Population: Trends to 2100
An Ozzie said (from an FT article) that if no rain is received in three weeks, then disaster. Right now the wheat forecast is 13.5 million tons, ...

www.theoildrum.com/node/3091/250747

Note that most/all are still using the 15.5 ton number.

Australia needs 5 mt for domestic consuption.
Last year's harvest was 9.8 mt.

I'm still looking for closer to 7 mt.
The Oil Drum | World Energy and Population: Trends to 2100
An Ozzie said (from an FT article) that if no rain is received in three weeks, then disaster. Right now the wheat forecast is 13.5 million tons, ...

www.theoildrum.com/node/3091/250747

Thanx for the find.

Arkansaw of Samuel L Clemens

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PaulusP on October 30, 2007 - 10:14am

Next time they can toss me the 12 mil. Organic food is so much better in taste and texture; obvious results I would say.

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PaulS on October 30, 2007 - 10:25am

If it was necessary to spend 12 million pounds to discern the effect, then it must be far too insignificant to justify paying triple for the foods in question. But it will give yuppie foodies something new to obsess about.

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NeverLNG on October 30, 2007 - 10:36am

It mostly gives the global agri-business another handle to market their products. "Organic" is the new mantra -- and the US Dept of Agriculture has obligingly twisted the original (and sensible) meaning of the term to embrace all sorts of mischief. Such as factory farming spinach and pork and beef -- all "organic" of course -- that has recently been notorious for spreading disease.

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TrueKaiser on October 30, 2007 - 11:20am

Yea, my local target for example sells supposidly organic liquid milk that claims on the box it doesn't even need to be refridgerated..

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GliderGuider on October 30, 2007 - 11:47am

I don't think UHT sterilization would preclude milk from carrying an "organic" label. Perhaps that's what they did?

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TrueKaiser on October 30, 2007 - 11:51am

I don't know it says nothing ont he label as to what processes it went through other then being labeled 'organic'

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SamuM on October 30, 2007 - 1:57pm

EU doesn't allow calling organic milk that has been homogenized or UHT treated. Don't know about your country.

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BobCousins on October 30, 2007 - 7:39pm

I don't believe that, do you have any proof? It sounds like another EU "straight banana" myth.

I've seen organic milk on sale that is UHT or pasteurised, and I don't see why homogenisation would preclude an organic tag either (it's a mechanical process).

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SamuM on October 31, 2007 - 1:14am

This is 2nd hand knowledge from our milk producer locally. They sell organic milk and they say EU doesn't allow for homogenization or UHT.

Also, all of our organic milk sale in FIN is NOT UHT or homogenised.

I'd have to find the corresponding directive in an EU database, to make sure it's true... :)

I tried at EUROPA > EUR-Lex > ADVANCED SEARCH , but only got error messages.

So, you could be right, but currently I go with the producer, until I get evidence of otherwise.

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chemE on October 30, 2007 - 6:03pm

For "Organic" let the buyer beware. Many packaged "Organic" foods at Health Food Stores AND at Whole Foods are not labelled with the country of origin. The Grocery Store industry has fought tooth and nail to delay rules requiring country of origin labelling for foods.

Many countries use "conduit" countries for their food. E.g. the package may say Made in Canada but an importer based in Canada may have imported the food, maybe processed or packaged it and then sold it as Canadian.

A lot of feed for Organic dairy and meat animals is being imported and that is putting downward pressure on domestic prices of Organic feed. Auditing and Organic standards for foreign producers including very large and powerful countries are different and often inferior.

If you can be assured that the product is Organic then it is great for you and the environment. But it is a jungle out there.

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DIYer on October 30, 2007 - 8:13pm

Of course melamine is organic. You'll find it on the shelf in your organic lab. So it's all good, see?

| _{The problem will solve itself.}| _{But not in a nice way.}

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pseudonaja on October 30, 2007 - 3:53pm

The cost of organic food is the REAL cost of sustainable production. Industrial non organic farming is strip mining the soil. The 'cheapness' of industrially farmed food is a transient oil dependant phenomenon. The only food available in the future will be organically farmed, get used to it!

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TrueKaiser on October 30, 2007 - 4:30pm

No it's not but it's closer to the real cost then non-organic. organic food still uses some fossil fuel inputs.

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PedalPusher on October 30, 2007 - 10:36am

Price controls on food? So those countries want their people to starve due to the inevitable shortages? "Yes, we have cheap meat, chicken, bread, fruits, and vegetables... if you can find any."

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PaulusP on October 30, 2007 - 10:57am

UN Director General: Food Riots Would Not Be A Surprise
http://www.economicsbriefing.com/2007/10/un-director-general-food-riots-...

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TrueKaiser on October 30, 2007 - 11:22am

The alternitive is NOT any better, instead of not finding any they just plain can't afford it. But don't let that get in the way of your free market idology.

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