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Hyperinflation in Commodities Hits World Food Program

Jan. 26, 2008 (EIRNS)—UN World Food Program (WPF) officials at the World Economic Forum at Davos warned that food supply shortages are threatening their humanitarian mission. "We have never seen this before: We went begging for wheat, and for two weeks we could not find it," today's Financial Times quoted one WFP official.

Behind the scarce market of food staples such as grains, are record-breaking price increases over the past months. Wheat, rice, and soybeans have reached all-time highs in the commodities markets, with corn at a 12-year high. Commodities dependent on these items—poultry, livestock, dairy, and eggs, are also inflated. In response, many countries are imposing export controls to secure supplies, especially for necessities such as wheat and rice. Export supplies have plummetted, leading to even more price increases. The cost of imported food rose in 2007 by 21% to $745 billion for the world.