Frequently Asked Questions: The Global Food Crisis

The global food crisis is a crisis of high food costs and lack of availability. It disproportionately affects poor people and families who spend a high percentage of their limited income on food. In the last few years, the price of the most basic foodstuffs traded on international markets has increased sharply in every region of the world. For example, the price of wheat has doubled in less than a year, while other staples such as corn, maize and soy are trading at prices well above their 1990s levels. Rice, which is the staple food for about 3 billion people worldwide, has tripled in price in the last 18 months, and in some countries, prices for milk and meat have more than doubled.

At present, this crisis is most serious in urban areas, where people must buy all of their food and are at the mercy of volatile markets. However, people in rural areas and others who cannot produce enough to feed their families are also suffering.

The spike in food prices is not just a short-term crisis. The United States expects food prices to continue to rise through 2009 and then finally stabilize by 2015 above 2006 levels. This projection indicates the crisis will be long term.

There are several factors, both cyclical and structural, driving the sharp increase in global food prices:

Increased demand for animal protein.

The rise in the standard of living has led to dietary changes for hundreds of millions of people. As their diets become more like those in the developed world, they consume more animal products such as meat, dairy and eggs. Raising animals consumes much more grain than simply feeding people a traditional grain-based diet. In addition to the overall increase in demand for grain, some farmers have shifted production from food grain (for people) to feed grain (for animals).

Increased fuel prices.

Record-high oil prices have led to higher transportation costs, higher costs of agricultural supplies such as fertilizer and pesticides, and higher costs of production for commercially produced crops.

Lower food reserves.

The U.S. Department of Agriculture has reported that global grain reserves are at their lowest level since 1960. Global stocks of wheat, corn, barley, sorghum, millet, oats and rice have decreased almost every year since 2001.

Biofuel production.

According to the International Grains Council, 6.5 percent of all crops produced globally in 2007–2008 are being used to produce biofuels. In the United States, as much as 28 percent of the corn crop is going into ethanol production, with plans to increase this amount even further. While experts disagree on the extent of its impact, the use of agricultural land for biofuel production has contributed to increased food prices.

More natural disasters around the world in 2007 and 2008

Drought in major producing areas such as Australia, the Balkans and the former Soviet Union has reduced food crop production. Flooding in Aisa reduced rice prodution. Creeping mold is also affecting production in South Asia.

Food export limits or ban.

Certain countries have reduced the available supply of food that other countries can import.

Years of underinvestment in agricultural productivity.

While the food crisis seems to have appeared suddenly, the lack of investment in agriculture and market infrastructure—particularly in developing countries—has combined with other factors to create this crisis.

Government crop subsidies.

Each year, the United States and European Union provide billions of dollars in subsidies, or payments, to producers of certain agricultural products. The subsidies distort the local and global marketplace and are especially harmful to poor farmers in developing countries.

Haiti

Protests broke out in the capital, Port-au-Prince. over the rising cost of food. Haiti's food prices are up about 80 percent since August 2007.

Lesotho

News media have reported children collapsing in school because of hunger. Food price inflation has been exacerbated by a drought that affected the country in 2007. Many families use 50 percent of their income on food. Price increases are expected to continue in this country, one of the hardest hit by HIV and AIDS.

India

The price of agricultural goods has been at an all time high for the past three years and is significantly affecting the vast majority of the population. The government has recently banned the export of wheat, non-basmati rice and oils used to prepare food.

Indonesia

The price for eggs increased by 30 percent and edible oil prices rose up to 20 percent. In Deli Serdang, workers demonstrated in front of the District House of Representatives asking for increased wages so they could afford food.

Ethiopia

Increasing numbers of women, children, and elderly and disabled people are living on the streets of Addis Ababa. The Missionaries of Charity have experienced a 20 percent increase in demand for their services in urban centers over the past two years.

Burkina Faso

Demonstrations against the high cost of living held in three major cities resulted in property damage and more than 300 arrests. The price for a 110-pound bag of rice increased by 25 percent in just three months. Local cottonseed oil was up by 33 percent while imported oil was up 67 percent during the same period.

CRS continues to distribute food to those who need it, including the desperately poor, orphans and vulnerable children, pregnant women, people affected by HIV, and the sick. Additional emergency food distributions are being arranged as conditions require them and resources permit.

In countries where sufficient food is available, CRS is already undertaking or planning cash voucher programs that enable recipients to buy foods of their choice from the local market. This approach supports local producers and markets, while targeting resources to those who need them most.

In several countries, CRS is also arranging for the distribution of vouchers to purchase seeds, fertilizer and tools that will enable suburban and rural communities to bolster their next harvests. In urban areas, CRS is working mainly through the Missionaries of Charity and similar organizations to strengthen their response to the significant increase in demand for their services.

CRS will also promote the growing of staple foods all year round and the production of crops that can receive higher prices. Additionally, cash for work activities designed to help farmers invest in better agricultural technologies are under consideration.

CRS and the USCCB are also advocating that the U.S. government provide adequate funding to meet immediate hunger needs in both the United States and abroad. Together, we are also calling for significant increases in U.S. government investment in agricultural development and market infrastructure in developing countries. CRS is supporting local partners to change policies in their countries that discourage agricultural development. Finally, CRS and the USCCB are urging the U.S. government to reform agricultural subsidy policies that disadvantage small farmers in the United States and diminish the ability of poor farmers in developing countries to compete in the global marketplace.

The U.S. Congress has made significant emergency funding for additional food aid available to reach people in need worldwide. President Bush has also requested additional funding for this effort. Action is now needed to address the long-term issues related to the global food crisis. The U.S. government has provided $150 million of supplemental funding for agricultural development, but more funding is needed to ensure sustainable increases in agricultural production and productivity of staple food crops.

Pray:

Pray for our brothers and sisters throughout the world who are hungry and too poor to purchase food. Hold a special prayer service for the people affected by this food crisis or include them in your prayer intentions.

Act:

Get involved. There are numerous activities to engage all age groups.

• Join our advocacy efforts to urge the U.S. government to help the world's poorest people overcome this food crisis and implement plans to avert further crises in the future. Join the CRS Advocacy Network and sign up for the USCCB action alert mailing list today.
• Engage your school or parish in CRS' 24-hour fasting program, Food Fast.
• Participate in Operation Rice Bowl and make a concrete difference in the lives of those living in poverty.

Learn:

Learn about hunger and food security issues around the world.

• Learn more about the global food crisis and what CRS is doing to alleviate peoples' suffering.
• Join the USCCB-CRS Catholic Campaign against Global Poverty today.

Give:

Help CRS help the poorest people around the world by making a donation to food security and other programs. You can donate:

• Online:https://crs.org/donate/
• By telephone: 1-800-736-3467
• By mail:
  Catholic Relief Services
  P.O. Box 17090
  Baltimore, MD 21203-7090