Global Growing Prices on Foodstuffs Awaits Us

According to the forecasts published in newspaper Financial Times, considerable growing prices on foodstuffs is being awaited in 2008. Meanwhile experts of investment bank Credit Suisse consider that fast growing prices will proceed next 3-5 years. For the last year the price for wheat in the world markets has grown twice, the prices for corn and rice also beat records. In Russia cut-off the 10^th of December the growth of consumer prices has made 11,1%.

Director of institute of economy Russian Academy of Science Ruslan Semenovich Grinberg called growing prices on foodstuffs one of the main events of the year, BBCRussian.com informs. In Grinberg's opinion, this growth can be explained by various factors, for example, bad crops and also retargeting of some farmers on cultivation of rape from which diesel fuel is made.

Besides in the countries with quickly growing economy, for example, in China and India the middle class is also growing and the increasing quantity of people began to eat better.

However, it's not so terrible, as it may seem at first sight, the expert on grain of the Organization of the United Nations Food and Agriculture Organization (FAO) Raza Abassian consider.

"The problem of increase of demand - is temporal, - Raza Abassian says. - Market should adapt to a growing demand for biofuel. It's a new phenomenon, but the market in due course will adjust it by increase of offer of grain for the needs of manufacture of biofuel".

Nevertheless, FAO predicts that by 2016 wheat will be on 21% more expensive, than on the average for last six years, rice - on 37%, butter - on 43%, cheese - on 33%.

- I would not treat so seriously what Financial Times writes, - editor-in-chief of FORUM.msk Anatoly Baranov considers, - as I had some opportunities to get convinced in full lightness and bias of this edition. But in fact we are exact as Papuans, any color beads with a label "made in" is already maximum authority for us. However this very "forecast" given by Financial Times I would read very carefully, because it's not the forecast at all but preparation of public opinion for some global economic decision. You paunch too much, sirs! In fact it's not the result of work of nonexistent analysts of the newspaper but purposeful "piping" from the side of global corporations monopolized the world market of foodstuffs long time ago. It is a question of such monsters as "Nestle", "Philip Morris" and a number of others grasped the whole segments in world production and distribution of food. After such large producers of foodstuffs as the former USSR and the East Europe, China, India were built in the world system of manufacture and distribution, global decisions on foodstuffs market became not only possible, but also easily solvable. We see how producers of oil and gas have by the throat all world economy, but it's nothing in comparison with what monopolists of the foodstuffs market could.

- The quantity of enterprises on manufacture of ethanol is doubled every year, Alexey Mzareulov, the expert of the Party of Social Justice, considers. - 20% of a world crop of corn was spent on its manufacture last year. And this figure will grow further as under forecasts of the United Nations the demand for biofuel in the nearest 3 years will grow on 170%. Such development leads on the one hand to physical reduction of total amount of the world foodstuffs and on the other hand - to sharp growth of the world prices on agricultural products mentioned above. Thus, for example, after application of G. Bush about intention to get production of ethanol by 2017 up to 132.7 billion litres, the price on corn increased twice. 

"It is absolutely truly noted by experts that retargeting of huge areas under crops on manufacture of fuel played its role in future growing prices, - Anatoly Baranov continued. - However, it's not the only reason of future growing prices which figures FAO "predicts" with surprising accuracy, for example, that cheeses will rise in price not by one third but namely for 33 percent. Such happens when everything is already planned in advance. But the major role in the future and already taking place growing prices is played by that "nature of market" which, according to the experts, should adjust everything. Thus, world monopolists actually liquidated an opportunity of free uncontrollable growth of manufacture of foodstuffs in the developed countries-manufacturers of the foodstuffs - today in a number of countries is already legislatively allowed to sow the areas only by genetically modified grain received, naturally, in certain places. Transfer on genetically modified foodstuffs has the danger of full controllability of "independent" agricultural producer from large campaigns, which can produce only genetically modified sowing materials. The monopolist sits on distribution of seed fund and is capable to control manufacture by the simplest way. Naturally, FAO now can known, how much of this or that product will be produced and it is possible to give the future price accurate within the second sign".

- Independent agricultural production disappears all over the planet, - Anatoly Baranov finishes, - today already all processing of agricultural products is also in hands of world monopolists. Our statisticians are pleased with the growth in the food industry of Russia, but in fact these are - "Nestle", "Bonduel", "Coca-cola", "Philip Morris" and not domestic production. Look at the countries of the former Comecon - where are familiar since childhood Hungarian, Bulgarian, Romanian, Polish brands? Only one "Bonduel"... Look, the prices for foodstuffs made in Russia in the capital markets 10 and more times higher, than in places where these products are made. But in a year-two there will be no these markets and we shall buy everything in "Aushan" and "Ramstor" - for a monopoly price which will be higher, than today in the market. It is global economy and it is terrible because in some far not so fine moment "market" will decide that beyond means of some layer of population of a planet to eat - and the market would at once readjust "odd mouths".

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