Not surprisingly the FAO warns about rising food prices for the 8th month in a row!

Amid concerns of political turmoil and rising oil prices, I was not at all surprised this morning to hear that the FAO's report on February's food prices is not any better than January's. For what is not the 8th month in a row the global food price index has risen. The index of food prices rose 2.2% in February, making it the third month in a row of never before seen record highs. The January index shattered the previous record from 2008, and from December 2010. 

With prices this high there is much speculation and concern over the possibility of riots and turmoil like that seen during the highs of 2008. In 2008 many developing countries around the world faced food riots and bans on exports from the developing world. This plus the rising concern over the price of oil, could create a perfect storm of dangerous political conditions. As if that wasn't enough, the growing season is right around the corner. Should global agriculture be faced with problems similar to the 2010 season, we could be in for a even rougher 2012. Last July started the spike in prices, in response to problems like fires in Russia, floods in Pakistan, and droughts across Canada and Australia. Pessimists like me think that problems like droughts and floods will only get worse.

In the face of all this it is good to see the Director of the FAO, David Hallam, being realistic. In the FAO report he states; "Unexpected oil price spikes could further exacerbate an already precarious situation in food markets... This adds even more uncertainty concerning the price outlook just as plantings for crops in some of the major growing regions are about to start." Indeed we are in a very unique environment. In the United States the market for corn has had a significant dent put in it by biofuels. Problems with corn and other crops like wheat and soybeans, are further exacerbated by the rising cost of oil, which is now hovering above the $100/barrel mark. The index does follow more than crops; meat, oils, and dairy are also on the list. All of the above are seeing marked percentage gains. 

The lesson to be learned here is to be watchful of food prices in the coming months. Take advantage of sales, and coupons. Stock up on nonperishables when you can. Where practical, plant a garden, fresh fruits and vegetables will be the most expensive part of your grocery bill but the easiest part to grow yourself. Buy organic, buy local, that supports the kind of change we need in agriculture while assuring you are eating the freshest and healthiest food you can. Good luck....