Title: 2007–2008 world food price crisis - Wikipedia
Headings: 2007–2008 world food price crisis
2007–2008 world food price crisis
Contents
Drastic price increases and possible causes
World population growth
Increased demand for more resource intensive food
Effects of petroleum and fertilizer price increases
Declining world food stockpiles
Financial speculation
Commodity index funds
Effects of trade liberalization
Effects of food for fuel
Biofuel subsidies in the US and the EU
Idled farmland
Agricultural subsidies
Distorted global rice market
Crop shortfalls from natural disasters
Soil and productivity losses
Rising levels of ozone
Rising prices
In developed countries
United States
Effects on farmers
Relationship with 2008 Chinese milk scandal
Unrest and government actions in individual countries and regions
Tunisia
Morocco
Bangladesh
Brazil
Burkina Faso
Cameroon
Côte d'Ivoire
Egypt
Ethiopia
Haiti
India
Indonesia
Latin America
Mexico
Mozambique
Pakistan
Myanmar
Panama
Philippines
Russia
Senegal
Somalia
Tajikistan
Yemen
Projections and early mitigation efforts
After the crisis
Actions by governments
Food price decreases
See also
References
External links

Content: Ammonia production ), natural gas has its own supply problems similar to those for oil. Because natural gas can substitute for petroleum in some uses (for example, natural gas liquids and electricity generation ), increasing prices for petroleum lead to increasing prices for natural gas, and thus for fertilizer. Costs for fertilizer raw materials other than oil, such as potash, have been increasing as increased production of staples increases demand. This is causing a boom (with associated volatility) in agriculture stocks. The major IFPRI Report launched in February 2011 stated that the causes of the 2008 global food crisis were similar to that of the 1972–1974 food crisis, in that the oil price and energy price was the major driver, as well as the shock to cereal demand (from biofuels this time), low interest rates, devaluation of the dollar, declining stocks, and some adverse weather conditions. Unfortunately the IFPRI states that such shocks are likely to recur with several shocks in the future; compounded by a long history of neglecting agricultural investments. Declining world food stockpiles
In the past, nations tended to keep more sizable food stockpiles, but more recently, due to a faster pace of food growth and ease of importation, less emphasis is placed on high stockpiles. For example, in February 2008 wheat stockpiles hit a 60-year low in the United States (see also Rice shortage ). Stocks are often calculated as a residual between production and consumption, but it becomes difficult to discriminate between a de-stocking policy choices of individual countries and a deficit between production and consumption.