Here and now; the global food crisis PDF Print E-mail
Written by Brian Mogaka   
Saturday, 19 April 2008

My mind has of late been engrossed in such matters as the Safaricom IPO, the Kenyan cabinet fiasco, and the elitism of Senator Obama.  The world, meanwhile, is on the brink of a food disaster, such a major one that the very definition of hunger will soon be changed forever. 

Images of malnourished children will no longer be the face of starvation. We will instead see food labelled with extraordinarily exorbitant prices, shortages that force even the wealthy into long queues for food and total anarchy as countries in different parts of the world spiral out of control as the hungry demand that they be sated.

The effects of worldwide food shortages, and the concurrent financial crises are being felt the world over. India’s drastic inflation has resulted in demonstrations by its main opposition party disrupting the activities of the lower house of the parliament and further heightening  political tension there.

And India is not an exception, around the world, prices of food are continuing to rise at rates not experienced in recent history. The price of Thai rice, which is used as a benchmark for the global price of rice, has gone up by 75 per cent. The price of wheat has also gone up by 130 percent over the past year doubling the price of bread in many countries. Soya prices are up 87%. Overall, the UN's Food and Agriculture Organisation says food prices have gone up 45% in the last half year. It also reports that there are only eight to 12 weeks worth of cereal stocks left in the worldand that grain supplies are at their lowest levels since the 1980s.

In response to this reality, the Philippine government for example, the world's top importer of rice has decided to accelerate its imports in an effort at shoring up its domestic strategic stockpiles. Indonesia on the other hand, has set up a new restrictive regime for the export of rice, in an effort at stabilizing local prices. The Argentine government on its part has slapped higher taxes on grain exports and been so adamant in its stand that it bore resolutely a farmers' strike against the move.  In Egypt, Pakistan, Ethiopia, India and Vietnam the same story repeats itself, and worst of all among those restricting trade are the world's largest producers and exporters of grains.

The political crisis in Kenya has masked the 20 to 30 percent hike in the prices of many vital commodities- what we think is a temporary corollcary of the violence is in many cases a long-term adjustment to the global reality.  With violence taking people off their land in the planting season, and disrupting the efforts even of those retaining their farms in the immensely productive Kenyan Rift Valley, we now live under a cloud  of impending food catastrophe.  In urban areas the post-election crisis and the downturn in economic activity have led to great leaps in inflation even as unemployment increases and wages -where available- stick stubbornly low.

But even before this year, the cost of basic food products in the cities was increasingly out of reach for most residents. One of the main causes of this was the increasing cost of production at the farm and processing level. Several factors have worked to bring this about. Rising fertiliser and oil costs have increased the cost of getting the food to the market which extra cost is subsequently passed on to consumers. These additional costs have not been factored into the prices as much as they could have, but as the farmers’ bottomlines continue to dwindle, they are being forced into responding to the market.

Then there is the effect of global climate change. Major grain producers and exports such as Australia are currently undergoing a severe drought. China is feeling the pressure of feeding its expanding population, while with little attention paid to it, the once fertile North China Plain is drying up.  Malaysia is recovering from the effects of flloding and neighbouring Indonesia the effects of drought. Although the total output of most grains has improved with better technology and farm inputs, overall global demand clearly is close to outstripping supply, a fact that pushes prices ever higher and in an increasingly globalised market, leaves the weak and poor unshielded. 

Another factor, not much spoken of but in Kenya especially evident in the tea and coffee sectors is the entrance, influence and increasing prominence of speculators - investors taking bets on price movements- in the agricultural markets. With returns looking increasingly lucrative, and other sectors of the economy taking a hit from the post-election violence, credit crisis and economic downturn, we are likely to observe capital flowing increasingly into punts that will drive food prices even higher and away from the reach of the most poverty stricken. 

National security, food security

Why should we care? Apart from the human, moral imperative to care for the poor people not able to afford basic sustenance, we should be aware of the rising political and social unrest that can be caused directly as inflation spins out of control and the lives of the poorest are made unbearable. What looks like someone else's problem could soon knock on the doors of even the wealthiest countries and homes. Already we have seen countries such as Haiti where the prime minister was ousted after a week of riots induced by food rationing. Similar protests have been reported in Niger, Cameroon, Mauritania and Burkina Faso.

What can Kenya do to redeem itself in the face of such a global meltdown? The basic infrastructure is already in place to meet the increased demands for grain such as maize and wheat that form important constituents of the Kenyan stable diet. Over and above that however, the government machinery needs to urgently work to coordinate resources and efforts towards ensuring crucial reserves are at levels such as would ensure food security for the immediate future before we can replenish them off of our own harvests. In addition, it is of utmost importance that farmers are given incentives to put as much land as possible under the plough and that exports of crucial food products are restricted to the bare minimum. These efforts will cost far less and in the long term be less harmful than subsidies. At the same time, the Trade Ministry must seek to reduce as far as is possible import tarrifs on cereals and to seek to diminish the burden on farmers from the cost of farm inputs.

But more than these immediate measures, every effort must be taken to ensure farming is made as efficient and productive as pssoible. To incentivise farmers, farmgate prices should be cushioned against drops due to the increased imports and policy geared towards making trade in and transport of grain as hasslefree as possible.

The common fix that was adopted by the Moi government back in the Mid 1980s when Kenya grappled with a drought that dried up reserves and led to drastic hikes in food prices was to set consumer end price controls. This had the counter-effect of discouraging production and trade and leading to even worse shortages. This in turn led to such phenomenon as widespread queuing for the food and the importation of massive quantities of food aid. But that food aid may not be available this time. Not only is the crisis global, but many of the fields that would previously have supplied world relief food through agencies such as USAID are now cultivated exclusively for the supply of biofuels.

The Kibaki government did not fare any better when the country was hit with drought and food shortages that affected 3 million people in 2004-2005. The government was caught flat-footed as our countrymen died in Eastern, North Eastern and the Northern Rift Valley. With a limited supply for grain storage as was then displayed it is unlikely that Kenya has enough in the tank to last this ride. But there is no one to push us along, this one we will take a long and we must not  wait to act. It may already be too late. 

 

Brian cares about Kenya. This article is published exclusively for KenyaImagine. Reproduction is unauthorised except with the express permission of the editors who can be reached at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it  


Brian Mogaka
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Great Article
written by pndiangui , April 19, 2008
Speculators , punting on commodities exchange through-out the world on these important commodity assets such as wheat, Soya and Corn or their derivatives are pushing prices up. But the the biofuels way I think is all but a bad way of re-directing farmers' efforts. I think algae is a better raw material for bio-fuels than corn.
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Great article, yes..
written by jmaruru , April 19, 2008
Bio fuels might end up causing just as much trouble as fossil fuels, which translates to climate change and even more difficulty for the common farmer in his endevours to grow food. A cycle of hunger for the very poor.

Incidentally, the food shortage is partly caused by the rise in incomes for a margin of the world population. The rise in income allows for a rise in demand for food, meat in particular. Meat costs more grain to raise which reduces the supply of grain and raises the price of food for common binadamu.

Whew! Now that I have said all that, maybe sukuma wiki and ugali kila siku is a good option for the earth's continuity. And at the rate we are going, I won't be able to afford even that in a while.
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Poverty the cause of hunger
written by Kim G , April 19, 2008
In Kenya, we have seen people dying of hunger while the neighborhood shops, full of food, close down for lack of business. Hunger is closely related to poverty and many of those affected by famine also happen to be the poorest.

The solution to solving world hunger is not to restrict markets, like Phillipines, Indonesia and Argentina are doing, but to make them more efficient. At any given moment in the world, there will be people starving while others throw away surplus food. We've seen the same here in Kenya where people resort to eating dogs in Ukambani while dairy farmers pour thousands of litres of milk just 100km away. The problem is not lack of food but inefficiencies in distribution.

We also need to adopt better methods of production such as large scale farming. Unfortunately in Africa, the trend seems to be towards the opposite direction where land is subdivided into smaller and smaller units. Again with political demands of taking large farms to resettle squatters, food insecurity can only increase. Not to forget the degazettement of forest lands which has led to the drying of rives. Sentimental attachment to land aside, the rural poor are better off getting jobs in large plantations and earning Shs7,000 a month than trying to eke out a living on less than 5 acres of land. Many of our subsistence farmers will never grow enough to feed their families even with good rains. With climate change, they are bound to get more frustrated.
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example to emulate
written by observer , April 19, 2008
I was watching Jeffrey Sachs the famous economist the other day talking about this very topic. He spoke of how the government in Malawi was able double agricultural grain production year over year by supplying farmers with nitrogen fertilizer for a relatively small figure. A program that Kenya can easily copy with money got from halving the bloated cabinet and government. The Europeans were up in arms faulting Malawi for not growing organic foods blha, bhla but once they saw the results they were jumping on the band wagon saying how this is what they always wanted for Malawi. They came out of the wood work to plead all manner of support .
As for Kenya, I have stooped wondering why our reproaches to a sector that employs over 70% of the labor force but accounts for less than 30% of GDP is so grossly underdeveloped and neglected.
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GM foods
written by pndiangui , April 19, 2008
May be this is the time to look deeper at what Monsanto has been preaching all along? GM foods , that can start taking care of the increasing demands of food from the Asian nations and that can withstand harsh climatic changes.
Are we really being realistic about the food needs of the the world when we push into the bin Monsanto's ideas ?
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Monsanto con
written by Wuod Aketch , April 20, 2008
Monsanto is one of those con companies trying to take over the economy of the globe. They are a sort of mafia like society.
If we allow such companies to continue operating in our countries, we will soon be paying for the air that we breath.
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written by Wuod Aketch , April 20, 2008
Speculators , punting on commodities exchange through-out the world on these important commodity assets such as wheat, Soya and Corn or their derivatives are pushing prices up. But the the biofuels way I think is all but a bad way of re-directing farmers' efforts. I think algae is a better raw material for bio-fuels than corn.


The west always has some card up it's sleeves. They will soon start starving Africans in order to get biofuels to run their cars!!
Even if we say that the Chinese are now better polluters than the USA, their road infrastructure that has taken care of a two way bicycle and scooter track system is commendable. Electric scooters are also the way to go (limit noise and air pollution).
A town that could benefit from bicycle and scooter reserved roads/tracks in Kenya is Kisumu.
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oh the humanity
written by jayawardene , April 20, 2008
A great article and some good comments. Food security has to be placed above all else as no.1 priority.

The Head of the WFP recently claimed that the growth in bio-fuel farming at the expense of food production is a Crime against Humanity. These are supportive words but just that, supportive. No good waiting for the WFP to feed us; this year they will only afford to buy half the grain they had last year....prices have doubled.
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re: GM foods
written by Shiro , April 21, 2008
?[May be this is the time to look deeper at what Monsanto has been preaching all along? GM foods , that can start taking care of the increasing demands of food from the Asian nations and that can withstand harsh climatic changes.
Are we really being realistic about the food needs of the the world when we push into the bin Monsanto's ideas ?
May be this is the time to look deeper at what Monsanto has been preaching all along? GM foods , that can start taking care of the increasing demands of food from the Asian nations and that can withstand harsh climatic changes.
Are we really being realistic about the food needs of the the world when we push into the bin Monsanto's ideas ]

Genetically Modified foods? These foods are suspected of being linked to chronic diseases in the West. I don't think the benefits are worth risking the health of our future generation. Some of these solutions that are too goood are just. One really ironic observation is that the foods (uji, beans, greens, etc) generally considered as food for the lower classes in Kenya are actually what health conscious folks in the West promote.

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GM not free
written by Kim G , April 21, 2008
Lets not forget that GM is patented and therefore not free. Companies like Monsanto obviously have a profit motive in promoting the use of GM. However, homegrown GM initiatives like those of KARI should be encouraged.
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written by Els , May 14, 2008
I am all for GM foods in Africa. As the climate is changing, oil prices are getting higher and population is increasing.We have land and labor, the idea behind GM foods is to get those that are resistant to certain pests and diseases, therefore more production. I fail to see many viable options, I think it is about time that we swallow our pride and embrace this option.We have a choice, if there are GM foods, more people will die of starvation and increased food production will eventually lower the prices of food, hence more affordable. Yes, there are risks associated with GM foods, Cancer etc.. but what would you prefer poverty, starvation and early death or long healthier life (long term)and risk of getting cancer at 50 and above? In addition the older you get the higher the risk of getting cancer anyway, you are also at a higher risk of been hit by a matatu, that suffering from alleged GM induced diseases.
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written by Els , May 14, 2008
NB// Meant less people will die, if they are GM foods.
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written by boby , May 26, 2008
The Head of the WFP recently claimed that the growth in bio-fuel farming at the expense of food production is a Crime against Humanity. These are supportive words but just that, supportive. No good waiting for the WFP to feed us; this year they will only afford to buy half the grain they had last year....prices have doubled.

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