Apr
21
Australian farmers doubled global rice prices?
April 21, 2008 | | Leave a Comment
by Rachael
An article from the New York Times last week put up a direct link between Australian farmers and global soaring rice prices plus food shortages.
The author of the article wrote that “[t]he collapse of Australia’s rice production is one of several factors contributing to a doubling of rice prices in the last three months — increases that have led the world’s largest exporters to restrict exports severely”, and led to “violent protests in countries” which are largely impacted, including Hong Kong.
The agricultural industry so suffered, and rice yields in Australia drop because of drought. “Some farmers are abandoning rice, which requires large amounts of water, to plant less water-intensive crops like wheat or, especially here in southeastern Australia, wine grapes.”
This article is drawing quite some Australian media’s attention. As quoted from news.com.au, “[a]ccording to the UN Food and Agriculture Organisation, Australia’s biggest harvest of rice in the past ten years was in 2001″, accounting for less than 0.3% of the world’s total for that year, even before the drought. A spokesman for the Australian Bureau of Agricultural and Resource Economics said “I don’t think we’re going to contribute too much to a global food shortage” given the minute segment of the world’s rice market.
Also on the New York Times article, “Australia’s total rice capacity has declined by about a third because many farmers have permanently sold water rights, mostly for grape production” …”Even with the recent doubling of rice prices, to around $1,000 a metric ton for the high grades produced by Australia, it is even more profitable to grow wine grapes. All told, wine grapes produce a pretax profit of close to $2,000 an acre while rice produces a pretax profit around $240 an acre.”
Farmers are actually making a better living for themselves, for survival only. Aren’t they?
