EU Blames India and China for Rise in Global Food Prices

Following the footsteps of President Bush, now the EU blames India and China for the increase in global food prices. According to the EU Commissioner for agriculture and rural development Mariann Fischer Boel, “the first elephant is the huge increase in demand from emerging countries like China and India. These countries are eating more meat. It takes about 4 kg of cereals to produce one kg of pork, and about two kg of cereals to make one kg of poultry meat. So a dietary shift towards meat in countries with populations of over 1 billion people each has an enormous impact on commodity markets.” However, this article does not quote any data to point to this growing trend of meat consumption in India and China. The article also quotes leading economist Jeff Sachs as saying that more than “third of the US maize crop in 2008 would be used to fill petrol tanks.” By the way, oil futures hit 123 dollars a barrel today. So, what is really driving global food prices, must be that the poor Indians and Chinese who live on less than a dollar a day are eating more. Hmm….we can’t have that happen. Can we?

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Essence of the Free Market System

Here is the essence of the free market system as articulated by Milton Friedman from the University of Chicago.