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Food crisis could hit Canada, expert warns
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CTV.ca News Staff
Date: Thu. Apr. 24 2008 12:18 PM ET
The growing worldwide food crisis could hit Canada, warns one of the country's top consumer advocates.
Mel Fruitman, of the Consumers' Association of Canada, said that while food costs in Canada are currently among the lowest in the world, that will change.
"We are going to continue to be somewhat insulated for the next little while, but then the bubble is going to burst," Fruitman told CTV's Canada AM on Thursday.
"Competition between the retailers helps us as consumers keep the price of our food basket down, but it also puts increasing pressure on the farms, on farmers, and that can't continue. Somewhere along the way the dam is going to burst."
For Canadians, the rising cost of fuel will have particular impact on the cost of food, particularly when consumers have come to expect a year-round supply of fresh fruits and vegetables in their grocery stores, Fruitman said.
"Anything that is trucked in, flown in, that comes from farther away than our normal hundred kilometres, say, is going to cost that much more to get to us," Fruitman said.
"And of course, the cost of fuel affects the cost of production of that food, it affects the cost of feed for the various animals. So, we are on a rising curve, there's no question about it."
On Thursday, Maple Leaf Foods Inc. announced it will raise prices of its bread as high grain costs cut into profits in both its bakery and hog divisions. The company reported that it lost $10,000 in the first quarter, compared to boasting a profit of $10.5 million during the same period one year ago.
The company also said its first-quarter sales fell by nine per cent over last year.
Canada Bread Co., 88 per cent of which is owned by Maple Leaf, also warned that its prices would rise after reporting that its first-quarter profits dropped by 32 per cent as a result of rising wheat prices.
"The continued rise in wheat prices together with increase in prices of other commodities, such as fuel and general inflation, has had a significant short-term impact on our margins and financial results," Richard Lan, president and CEO of Canada Bread, told The Canadian Press.
However, in the meantime, Canadian retailers aren't putting limits on the sale of any food items.
Wal-Mart Canada issued a statement on Wednesday that it will not follow the lead of U.S. retailer Sam's Club, which recently put restrictions on large purchases of some types of specialty rice.
Meanwhile, there are fears in India that the domestic supply of rice will dry up, and riots have broken out in Haiti among residents who are already feeling the food crunch.
CTV's Paul Workman, reporting from India, told Canada AM on Thursday that India has cut back on its rice exports in order to keep the cost of rice down within the country. However, the move will have far-reaching consequences.
"This is going to have an effect across Asia, but especially in neighbouring Bangladesh, which depends on India hugely for most of its rice imports. We've already seen some rioting in the streets there as a result of it and most of the food specialists here warn that Bangladesh and Asia are going to be the worst hit by this spiraling food crisis, and that it has to be watched very carefully," Workman said.
"And of course there are other agencies saying that there are something like 30 countries that may suffer social unrest as a result of these huge price increases."
The world's food shortage is continually growing and threatens the health of millions of people around the world, including some 20 million of the poorest children.
Josette Sheeran, executive director of the United Nations World Food Programme, focused on the crisis Wednesday during a speech at a London summit dedicated to the subject.
She said the cost of rice has more than doubled in the last five weeks, and the World Bank estimates food prices have increased 83 per cent in three years.
Dave Toycen, president of World Vision Canada, said Thursday that his organization has to cut back on how much food it can distribute when its main supplier, the United Nations World Food Programme, itself cuts back.
The international aid organization is cutting back on the vital flow of food it can provide to the world's most impoverished -- saying it can no longer afford to feed 1.5 million of the 7.5 million people that received aid last year.
Toycen's colleague in Sudan, Seth Le Leu, told Canada AM on Thursday that World Vision's operation in that country has to be scaled back.
"In South Sudan, we were intending on feeding 400,000 people who are returning to Sudan after 20 years of war," Le Leu said.
"Because of the change of policy, we will be treating 40,000 less than that. So that is a tremendous cut in our work."
Toycen also said that the food shortage will hit children the hardest.
"Basic illnesses that children normally have suddenly become fatal once they become malnourished, under-nourished," Toycen told Canada AM.
"And so that's the real concern for us as a child-focused organization."
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I fail to see just what a minister could learn by an on site visit that he couldn't get from people who are actual experts in the various fields of work involved. It is doubtful that he is any sort of nuclear engineer or expert in construction. Just another photo op...
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We Must Feed The Hungry
said
Robert N
said
Bob Delanore
said
What you do not see you cannot criticize, learn more, research more and your eyes will be exposed to a world that has been created to maintain the status quo. We can no longer afford to live reactionary lives, we must move forward to living preventive lives. If we are to see any change in government action, then we the people must wake up and demand it.
Think Locally Act Globally
wendy
said
Wondering
said
Ryan in Burlington
said
When you add drought and bad crops into the mix, it makes the situation worse.
The sad thing is though, if you were a farmer and could make more money selling your grain for ethanol gas, rather than for the production of food, what would you choose??? Yes, you'd go for the money!
I wont even get started on the issue of the world's population and it's effect on all this...
Everyone, you just have to sit back and think about it...what is more important, the environment or people not being able to feed their families???
My family comes first!
Shamaro
said
C.
said
They are not smart enough to know that they are milking their own cash cow dry.
There is more than enough for everyone on this planet...given it's distributed evenly.
Son of a Poor Peasant Farmer
said
John
said
Few people realise that only roughly, 100 miles of land, north from the 49 parallel is usable for agriculture, beyond that, the growing season is too short.
Farmland in this area is vanishing at an incredible rate and Canada is becoming more and more dependent on foreign imports from countries, with none of the restrictions placed on North American producers and where food is produced with chemicals long banned for use here.
Is this really what the public want?
MJM
said
stubblejumper
said
Exiled Canadian
said
Second, do some research on the Internet and you'll see that hundreds of thousands of tons of food are destroyed or left to rot every year to keep prices high for farmers to survive.
Third, look at all the food the industrialized nations put in the garbage can. The amount of food is wasted at the dinner table or in restaurants is appalling. Not to mention the obesity problem in these countries...
Fourth, one of the reasons why the cost of food goes up is the cost of harvesting because of the ridiculous oil prices. Ignore the environmentalists who blow things completely out of proportion. Drill in ANWR and build new refineries while the fuel cell technology is made more efficient. Have the governments give a healthy tax bonus to those who come up with an affordable solution to the oil dependence.
Finally, have everyone realize that this needs to be a coordinated effort by all countries. I get sick and tired of folks blaming the third world for this problem, when they hop into their Hummers ten minutes later and drive out to a restaurant to eat half a meal, all the while having left the lights on at home along with the sprinkler system.
The solution is simple:
1. Conservation of food and fuel by individuals and businesses.
2. Distribution of food resources that would otherwise be destroyed to keep prices higher.
3. Finding new oil resources while offering incentives to find a solution that will end our addiction to it.
Unfortunately, everyone has to be on board and there are far too many governments looking out for themselves instead of our future.
Governments do not take action unless a crisis actually affects their own political future. They couldn't care less about doom and gloom predictions (often based on disputed data) if they won't face a crisis before the next election.
It's sad but that's reality.
Sean
said
Mark G.
said
Shamaro
said
Jim
said
Joyce
said
Ryan
said
Rey C
said
jtkirk
said
I don't pretend to know politics and am not cultured enough to understand the complexities of the commodity markets, but if the price of oil is in an increasing trend, and there is a push for agri-fuel growth that will create a huge 'green fuel' alternative market that will compete with dirty oil, then farmers will plant agri-fuel products in lieu of food crop to make more money. Little does anyone realize that money is actually worthless and must come from someone else's pocket to get to yours.
We need to abolish the wheat board, milk board, and egg board and go back to lots of little farm operations rather than a few big ones. I believe that it has been proven that big farms are not as efficient as small ones (they are more competitive due to scale).
I know this sounds backwards but I believe we're going to get back to bartering and combining efforts with friends, family, and neighbours to survive regardless of how much the tax department insist that taxes be paid on bartered transactions too.
TinaB
said
How much has your 'phone/tv' cost gone up over the last 10 years, double?, triple. Yet we are paying the same amount for food, now that it is more..to little to late?..what happened.
When the wheat crop comes off in August and there's a glut on the market will the price come down? (Only for the farmer..unless they have a contract.)
Commodity brokers should be forced to store the commodities they buy in their backyards. It would stop all the speculation and provide everyone, but the commodity broker, a decent wage.
the Skratch Man
said
Smell The Coffee People
said
Our life style is killing us. We are but a disease that is destroying it's host. The symptoms are rising fuel costs, shortages of food, health care problems, over population, war, homelesness, etc, etc.
We need to change our lifestyle globally. Until this is done we are doomed.
Bev
said
Instead of blaming the third world, let's look at what we can change in our selves.
Joe
said
Rising prices will have little impact in Canada except for the hysteria whipped up by the media.
Steve Ermos
said
When did the US have the responsibility to feed the entire planet? I must have missed that UN report.
Funny how the same activists that riot in the streets to combat global warming, are the same activists that will be rioting in the streets because of food shortages.
It's like they say, be careful what you wish for because it may come true.
I hold Al Gore personally responsible for this world wide food crisis.
Darren
said
We should have been continuing to refine oil, while searching for a new alternative. And we should pull out of OPEC and form a new cartel with the US, Mexico, Brazil, etc.
The panic hysteria about the environment has caused knee jerk reactions to everything. The last time I checked everything in my garden was growing as usual. The oceans are working fine. And it's colder than normal right now, not warmer.
And whoever was mentioning birth control in the developing world was spot on. These poor third world countries are having way too much children...6 or 7 per woman in places like Yemen, Palestine, etc.
Drill more and build some more refineries and take the pressure off bio fuel until we can find a proper alternative. We need politicians with the balls to come out and override the environmentalist nuts and get on with it.
WW
said
island girl
said
Reese
said
Erik Miitel
said
This should not come as a surprise to ANYONE! As the old saying goes, we reap what we sow, and as a society, we have allowed the world grow unchecked, especially in the last 100 years. It has been warned for much longer that there is a point where the earth CANNOT support x numbers of humans - and it appears we have crossed that line. I recently read an article in Macleans which talked about a worldwide 1-child policy - perhaps it might be time to SERIOUSLY consider this, and put religious and ethnic views aside for the better of the planet! And I'm sorry to sound callous, but places like India have themselves to blame for some of their problems - they could have controlled their populations, but chose not to. Again, reaping what we sow.
Vote NDP
said
Also we need to ration food supplies so that way there will be no shortage and everyone gets food which eliminates inequality.
Farmer
said
Daryl in BC
said
Congratulations Greed and Corruption, you will soon be hidden away in your mansions overlooking the dead and the starving that could not afford your admission price for basic life.
But know this, when there is nothing left, you rule nothing.
Reece
said
In my opinion we need to rid ourselves of capitalism or over-haul it in a major way or we face destruction. The elite are not immune to this as they will become targets as they have in Africa, China and other 3rd world starving nations.
Regarding the fuel aspects...Hydrogen fuel technology is already here and it does not require a single drop of fossil fuels.
Adam
said
My patience with nations such as Zimbabwe has worn very, very thin. I feel NO guilt or shame because I am a hard working Canadian who provides for my family.
Unhappy Canadian
said
Balgonie Bob
said
Peter
said
suzan findlay
said
Robin da Hood
said
Kevin Aubie
said
martin
said
Tax Dollars
said
Make better use of our tax dollars.
A Montrealer
said
Temp crises, wrong priorities...
said
Robin the Hood
said
Carolyn Gardner
said
My family are farmers, many of my friends farm out in Manitoba and even though prices are good, they are not where they should be if there truly was such a shortage.
I think that biofuel is a waste. There is new technology out there with Chevrolet set to launch the Volt, and electric car and a hydrogen fuel cell model as well. We have the technology and know how... how about our government finally putting some money towards R&D for once and turning things around. It can be done.
Stevie Wondered
said
Biofuel production enhances the problem by reducing food supplies.
There is no win-win solution.
BCM
said
N T
said
Steve
said
Blame the guy that just bought a 3,000 sq. foot home in the burbs for his family of three, an hour and a half from his work, which in turn supports developers that destroy formerly productive farmland.....
Also politicians..always politicians, no matter what colour!
DRH
said
News flash. Rather than trying to feed all the people/children in third world countries, lets try educating them on birth control. I for one am tired of hearing their plight and seeing pictures on the tube of the peril they are in. These problems are heightened and glorified by the media. Every month that some crisis arise around the globe, we are expected to dig into our pockets? “WRONG”. With all the $$ that World Vision” has received in the past, how much of it actually reaches someone? As was said earlier, if they were not getting handed free food all the time they may be forced to start growing their own. Do not increase aid, decrease it.
pp
said
- Over population - underdeveloped countries need to do more to cut their birth rates, decreases in birthrates alway tranlates into higher education and income rates (sheesh '15 trillion' methods of birthcontrol out there use it people)
- rising petroleum costs - for what ever reason the cost is going up we use petroleate products for everything from the creation of plastics to fuel, fuel being the least of what petroleum is used for
- Bio fuels - growing crops for bio-fuel - when will people wake up to the fact that bio-fuel is NOT the answer, if one calculates the amt of fuel to prepare, plow, plant, harvest and ship these crops AND then the amt of H2O, etc to actually create the bio-fuel then they will realise it is actually harming the environment
- protectionism by countries not willing to / unable to sell their produce to other countries. Like India stopping rice exports - this means other countries who grow rice will be offered premiums by wealthier countries and thus their countries fall short... vicious circle.
So many causes - it's like a house of cards which is now falling...
Joe Canuck
said
Concerned in Canada
said
Lawnchair on the moon
said
Montrose
said
Ethanol is being made a scapegoat by the oil industry, which just loves scares such as this.
What happened to the cry just last year for alternative fuels to save the environment? There seems to be new world crisis every month. Who hears about the destruction of the rain forest these days, or is that yesterday's crisis?
Andrew
said
Francine
said
We need to go back to the way things were done before, you ate what was in season fresh, everything else was canned. Grandma had it right... and waste nothing.
Dennis
said
Al H
said
Maybe Bin Laden was right the west would be brought to their knees.
This whole crisis has no one to blame but Capitalism/Corporate GREED.
Oil companies got on the Band wagon first followed by any other that provides essential commodities...anything to make heat (electricity, Natural Gas even wood) what will be next water and breathing air.
When Canadians or people world wide have to decide between food or shelter something has gone wrong with Capitalism
Gerald Skowronski
said
Michele
said
grain supplies and grain stores. And this is
a longer-term story, and it involves organizations like the World Bank and the World Trade Organization that have a fairly iron control over the economies of most of the poorest countries in the world. What the World Bank and what the WTO and, to some extent, the
International Monetary Fund have done is force these countries to tie their hands behind
their back, effectively, and to bind them very firmly to an international economy in food. The consequence of that is that when the price of food goes up, these economies have
very little recourse and very little possibility of defending themselves economically.
Some WTO policies helping to cause food shortages include forcing a ban on all government farm programs and price supports worldwide (except for the US). It prohibits
countries from imposing import controls to defend their own agricultural production. They ban agricultural export controls even in times of famine.
The WTO also forbids countries from restricting trade through food safety laws calling them trade barriers; this demand also opens world markets to unrestricted GMO food imports with no need to prove their safety.
Each individual country should be able to control its own food supply. 'World organizations' should not control a countries food supply; therefore its people and government. Its nothing more then a way to control a country/population.
sarah
said
BELIEVE
said
One person adopt one child.
One person give something every grocery day to the food bank. If you think it goes to lazy bums-give baby food or similac. We can help. JUST DO IT.
Jane
said
Edb
said
No more subsidizing these bandits while the rest of us starve.
Ron W.
said
In future years things will only get much worse.
The total disregard for the environment and lifestyle is just beginning now to catch up.
The poor of the world will have to pay the price first. However, we will not be far behind and the price will be high.
I am not an environmentalist nor a Dr. Doom type and even I can see the writing on the wall
Higgy
said
James
said
quasimdo
said
Mike
said
Food for fuel needs to stop
said
Millions of people will go without food because of shortages and increased prices, because of the stupidity that surrounds biofuel, but that's okay because the scientists employed by the ethanol industry say that it's environmentally friendly.
Christne
said
No child should starve.