• 32% increase in food prices in 2010’s second half source

• » How does this matter? We’re at a record with food prices, making it hard for people to live in third-world countries. With quick growth in countries such as China, reserves are becoming harder to keep, and the supplies of basic crops like corn and soybeans (which also get used in vast quantities for such things as ethanol) are down significantly. And since Americans tend to eat more processed foods (which use fewer raw materials), price increases aren’t felt in the developed world as much as they are in the third world. “In this country, a much higher proportion of your food dollar is spent on processing, advertising and promotion and marketing,” said Global Insight economist Tom Jackson. “There’s not really that margin built in between the farmer and the consumer in the developing countries.”

Posted by Ernie Smith • Permalink