Summer Droughts and Fires Cause Wheat Prices to Soar
Can you imagine your grocery bill being 20% higher in 2011?
A United Nations report on Wednesday warned that food prices could rise by up to 20% in 2011. Here’s why:
- Prices of wheat, maize, and other foods have risen by 40% in just a few months.
- Sugar, butter, and cassava prices are at 30-year highs.
- Meat and fish are significantly more expensive than last year.
- Food analysts predict that 2011 will not be a good harvest.
- Global food imports will top $1 Trillion Dollars in 2010 (translation: food production is down).
- Russia has banned wheat exports, sending global wheat prices soaring.
- Generous subsidies for biofuels have lured farmers away from growing crops for food.
- A falling US Dollar means higher food prices for everyone outside of the US.
In addition, global food reserves stand at 74 days, a figure that is expected to decrease significantly in the coming months. “Cereal reserves may drop by around 7%, barley by 35%, maize 12%, and wheat by 10%”, said the UN report.
The only thing you can do to protect yourself is:
Store food and water for your family
You can start right now. How would you like to feed a family of four for a month and a half?