The Food Crisis

Food prices are going up because the giant corporations have global control of commodities and resources. Seed, fertilizer and even water are controlled by Archer-Daniels-Midland (ADM), Mosaic and Monsanto. The shortages in seed and fertilizer are artificially created by the huge agricultural corporations in order to run up the prices. For example, the third quarter profits of ADM jumped 42%. New income from storage and transportation of wheat, corn and soybeans has risen seven-fold. The fertilizer companies, such as Potash Corporation, have seen the rise in its stock price from $70 to $238. Mosaic also a fertilizer and feed producer has seen its stock go from $32 to $159. Monsanto profits jumped 45%. So do you wonder why food costs are up?

Furthermore, their intention is even to privatize the water supplies or possibly patent the water as Monsanto has done with seed. The farmer will no longer own the well under his farm. Also, rising oil prices are directly linked to the rise in food prices because fossil fuel is used in the production of chemical fertilizer. Third world countries are facing a starvation crisis because of food shortages and rising prices created by the profiteering of the huge agricultural corporations. The corporations blame the shortages on countries like China and India that for the first time have increased their food consumption. Increased income from manufacturing has improved the life style of the middle class. The corporations obviously are making obscene profits from the increased consumption.

To make matters even worse, the production of ethanol has tripled in the last several years promoted by the corporatists. The resultant increase of food prices has created a scarcity of food for the poor. Nearly all US corn production has gone into the making of ethanol. This has caused a severe shortage of grains and it is the poor who suffer. In the US it is not just the poor who are feeling the pressure. The middle class consumer is not spending as in the past; for example: restaurants that have been in business for many years are declaring bankruptcy. Chapter 7 of the bankruptcy act is the end.

One more point. ADM has a history of price fixing and their profiteering is causing global tragedy. Corporate spin covers their double-dealing.


Reference: commondreams.org