The End of the Era of Cheap Food
Concerns about food shortages and rising prices reflect the end of the era of cheap food. Following World War II, grain prices fell steadily around the world for decades. As farms grew in scale, factory-farm practices, such as the use of synthetic and mined fertilizers and pesticides, increased. Agribusinesses also invested in massive planting and harvesting machines. These practices pushed crop yields up and crop prices down. Food became so inexpensive that we entered what came to be called the “era of cheap food.”
However, by 2008, economic experts had declared that the era of cheap food was over. The rapid growth in farm output had slowed to the point that it failed to keep pace with population increases and rising affluence in once-developing nations. Consumption of four staples—wheat, rice, corn, and soybeans—outstripped production and resulted in dramatic stockpile decreases. The consequence of this imbalance has been huge spikes felt moderately in the West and to a much greater degree in the developing world. As a result, hunger has worsened for tens of millions of poor people around the world.
Two major trends played a part in this shift. First, prosperity in India and China led to increased food consumption in general, but more specifically to increased meat consumption. Increased meat consumption has led to an increased demand for livestock feed, which has contributed to an overall rise in prices. The second trend relates to biofuels, which are made from a wide variety of crops (such as corn and palm nuts), which increasingly are used to make fuel instead of to feed people.
The world population in 2010 was 6.9 billion. It is projected to grow to 9.4 billion by 2050. The rate of increase is particularly high in the developing world, and the increased population, along with poverty and political instability, are helping to foster long-term food insecurity. In the coming decades, farmers will need to greatly increase their output to meet the rising demand, while adapting to any future trends.
Key Takeaways
Food prices are rising in the United States and around the world, which has greatly affected both agricultural producers and consumers. A number of factors have contributed to rising costs, including population booms, natural disasters, and the production of biofuels, among others. Economic experts have declared that the era of cheap food, which began after World War II, has ended due to rising population rates and decreased agricultural production worldwide. As a result, hunger has worsened for tens of millions of poor people globally.