Dramatic Increase in Food Prices

June 4, 2008

For rice, which is the latest foodstuff to see a surge in prices, Franklin said their best-selling rices have risen more than 100% in price, while the lowest grades have risen some 300% in cost. And it’s not just rice. Franklin said they are talking about world grain stocks hitting a 35-year low. The Sugat CEO, who said he has been in the commodity world for decades, doesn’t remember ever seeing a problem like this. “I don’t think the world has seen this sort of situation before, when I say that all foodstuffs prices have risen at the same time.”

Among the reasons attributed to the food price crisis are weather problems, growing demand and consumption, increased use of biofuels and higher transportation costs. Franklin said they’ve had contracts for rice canceled and governments have halted exports. Since most rice production is in centralized economies, government-controlled pricing and export stoppages mean that farmers have no incentive to grow more, despite the price surges.

US President George W. Bush said in a press conference on April 27 that he is “deeply concerned” about the prices in the United States and international food scarcity. He has reason to be concerned, because Franklin doesn’t see the problem ending any time soon.

“In my view we’re talking about maybe four to six years before the world comes back into some sort of balance, but it’s very, very difficult to make any accurate predictions,” said Franklin. It is his belief that the world is in this situation for the long haul. He doubts that there are any quick fixes. Even increasing crops by the end of this year won’t solve the problem. “In my view,” Franklin said, “this time it’s far more serious.”

Severe Decrease in Water Levels

At this early time of the year, the river Yarkon is already almost stagnant.

The Kinneret Lake [Sea of Galilee] crossed what is known as the “Black Line”, a mark that indicates the highest severity for low water levels, after water levels dropped more than 6cm [2.4in] during the Passover holiday. Monitors of the Kinneret have three lines to describe low water levels in the lake, with the final marking a spot so low that water pumping equipment becomes exposed and taking water from the Kinneret becomes physically impossible. An unusually dry winter when coupled with water needed for agriculture has led to the current low levels. The issue is of concern because as water evaporates, pollutants become more concentrated, making it unsafe for fishing and drinking.
By Elisha Rabin, Infolive tv

Prayer Focus
Pray that the Lord will bring rain for northern Israel. Pray that the
dangerous water levels will be washed in His faithful provision.
“The poor and needy seek water, but there is none, their tongues fail for thirst. I, the LORD, will hear them; I, the God of Israel, will not forsake them. I will open rivers in desolate heights, and fountains in the midst of the valleys; I will make the wilderness a pool of water, and the dry land springs of water…That they may see and know, and consider and understand together, that the hand of the LORD has done this, and the Holy One of Israel has created it” (Isaiah 41:17,18,20).

By Joshua Spurlock, Correspondent, BFP Israel Mosaic Radio

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