Too few countries producing staple crops and associated risk

An article in the New York Times (September 7,2012) describes food price increases of 10% from June to July 2012, corn and wheat price increases of 25% and soybean price increases of 17%. The reason – drought in the US impacted corn, droughts in Russia and Ukraine impacted wheat and that in Brazil impacted soybean harvests. The United Nations warns that staple crops are grown by few countries efficiently, who now supply the world. They thus claim a higher risk of drought and other weather related issues impacting food supply, raising prices and decreasing access to food for the poor. Is efficient production by a few countries increasing food supply risk ? Should deliberate intervention by the UN and local governments be a strategy to diversify food supply? Will the risk increase as the impact of climate change becomes more significant ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability and tagged , , , , , , , , , , . Bookmark the permalink.

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