Title: Why Are Food Prices So High?
Headings: Why Are Food Prices So High?
Why Are Food Prices So High?
Content: 1) China and India have the largest and fastest growing populations creating demand for food from around the world. So one impact on prices has been rising demand from these countries, especially China. 2) The Japanese tsunami and earthquake last year drove up seafood prices by nearly 6%. 3) Vegetable prices rose 50% in the past month. Crop damage in Australia, Russia, and South America are to blame. 4) Government subsidized and mandated ethanol use has increased the demand for corn and reduced acreage dedicated to food thereby pushing food prices up. A Congressional Budget Office report concluded that the increased use of ethanol accounts for 10-15% of the increase in food prices. 5) Changes in government subsidies for crops other than corn for ethanol impact food prices. 6) Regulations restricting use of herbicides, pesticides, fertilizers, etc., while positive on some fronts, may result in poorer crop yields.