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Shops Ration Sales of Rice as US Buyers Panic
The global food crisis reached the United States yesterday as big retailers began to ration sales of rice in response to bulk purchases by customers alarmed by rocketing prices of staples.
Wal-Mart's cash and carry division, Sam's Club, announced it would sell a maximum of four bags of rice per person to prevent supplies from running short. Its decision followed sporadic caps placed on purchases of rice and flour by some store managers at a rival bulk chain, Costco, in parts of California.
The world price of rice has risen 68% since the start of 2008, but in some US shops the price has doubled in weeks.
Retail experts said there was little evidence of panic hoarding by the public but that restaurants and smaller retailers were buying up stocks at wholesalers in the expectation that the cost would go even higher. Shops said Filipino residents in the US were also making large purchases to send to relatives in the Philippines, where a shortage of supplies is causing concern.
"What you're seeing is people who buy in larger quantities, who have a restaurant or a corner store, stocking up because of media reports that prices could go higher," said Dave Heylen, a spokesman for the California Grocers Association.
The price of staple foods has been rising at an accelerating rate across the world, driven by what the United Nations has called a "perfect storm" of rising demand from developing countries such as China and India, the impact of climate change and policy responses by governments.
Since the beginning of the year, rice-producing countries including China, India, Vietnam and Egypt have imposed limits on exports to keep domestic prices down. This week, a top World Bank official predicted that Thailand, the world's largest rice exporter, might follow in restricting shipments.
The EU trade commissioner, Peter Mandelson, yesterday called on the World Trade Organisation to put pressure on food-producing countries to maintain exports. "If we restrict trade, we're simply going to add food scarcity to the already large problems of food shortages that exist in different countries," he told Reuters news agency.
The director of the UN's Food and Agriculture Organisation, Jacques Diouf, said the crisis had been building for decades. "The situation we are in is the result of inappropriate policies over the past 20 years," Diouf told journalists in Paris, pointing to a halving of aid to agriculture in developing countries between 1990 and 2000, while the industrialised world maintained generous farm subsidies.
British officials say they hope the food price shock will provide impetus for a long-delayed deal on liberalising world trade, known as the Doha round. They predict a possible breakthrough in the next few weeks. They also point out that the price rise could bring much-needed income to rural areas in Africa and elsewhere in the developing world if farmers are given enough support to respond.
Diouf said: "This is not Greek tragedy where fate is decided by the gods and humans can do nothing about it. No, we have the ability to influence our futures."
In Venezuela, President Hugo Chávez yesterday announced a $100m "food security fund", at a regional summit to agree policy as the crisis spreads instability across Latin America and the Caribbean.
Looting and riots in Haiti left at least six dead and forced the resignation of the prime minister this month, leaving the hemisphere's poorest country tense and edgy. In Guyana an 80% rise in the price of rice and 50% in the cost of chicken triggered protests and a strike by sugarcane workers. The government promised to issue seeds and urged people to cultivate idle land. Surinam set up an emergency cabinet committee to seek ways to dampen food prices.
© 2008 The Guardian
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53 Comments so far
Show AllLet them eat cake...
If the grocery stores run out of food, the poor can always go to McDonalds...
The good news is, the average American can survive for years on the fat in their asses alone.
Most of the Canucks I see living in their motor homes here in Arizona all winter who grocery shop at Wal-Mart and dine at McDonalds have fatter asses.
Only the beginning, folks. Only the beginning.
Wait until oil hits $150/bbl.
Then you will see just how vicious 'civilized' man can be...
Wonderful!
These irrational hoarders sure are doing their duty to assure that the problem gets vastly worse. Even more people will starve while commodity speculators get fabulously wealthy.
Market failure, anyone?
I told you soooooooo. ___Get your beans while you can, better stock up on toothpaste, soap, toilet paper, sardines and chocolate too. It's gonna get very nasty.
Sleeping bags too, it's gonna be cold with no heating fuels.
Irrational ~USAn~?
You may think it was irrational to not be prepared for the coming depression when your trapping mice to add to a tree bark and leather belt stew while hoping someone isn't sizing you up for their pot.
It's the weak dollar effect.
The price of rice, as the price of oil, goes up as the dollar depreciates.
Read and see the graphs: Rice, death and the dollar.
http://www.atimes.com/atimes/Global_Economy/JD22Dj01.html
Bush, and his upper class imperial war, impoverish the poor.
Our lives are worth more than their profits.
KEM -
Selfish typical-americans like you are exactly THE PROBLEM. You post itself constitutes the economic equivalent of shouting "fire!" in a crowded theater. In terms of the solidarity action required to solve this crisis, it is seditious - and I don't use that word lightly. But the facts are that such calls to irrational market-panic can be directly, caausually tied to many Haitians starving to death.
But of course, we already know what you think of Hatians.
USAns are in no danger of starving, period. BUT their irrational, selfish actions will assure those in the world who ARE in danger of starving will starve.
Dear USAns, please consider thinking about someone else except your greedy selves for once! Please look up the difinition of solidarity!
The problem is not physical supply, it is economic - a market failure. There is plenty of food if it is shared - forcibly, by government action, if necessary.
In the Philipines right now, hoarders are being put in prison. We may need to do the same thing here.
Well Kem, looks like your scenario is poised to play out...I hope I'm still invited to eat at your place as stocking up hasn't been attainable these past six months with my husband laid off and only working sporadically. He went back to work today so maybe I can grab me a 50lb bag of rice next week...
Two days ago I bought a 10lb bag of Basmati Rice - Then the headline yesterday. My response - bought another 10lb bag of Basmati Rice. Human Nature.
We will see more of this as inflation really starts to take off. When oil hit $70 a barrel, and stayed there, I knew the party was over. Everyone was talking about how the price of oil is no big deal. Wrong as we can clearly see now.
http://bananatreehotel.com/ramsay/oil-and-inflation/
Now that oil is at $115, and staying there, inflation will become devestating. There is a lag between oil price increases and consumer price increases, we're feeling the effects of $70 oil right now, soon we will begin feeling the effects of $115 oil.
The solution - Get out of Iraq. Once things settle down in the country, oil will drop by $30 or more, as the war speculators get out of the game.
Ramsay
get out and purchase some heavy artillery, because the conditions for a revolution are building.
Knock off the bullshit ~USAn~. I think the Hatians are jsut like all other humans, we are ALL the same. Those imaginary lines drawn on maps don't really exist.
I had previously posted the Hatian government leaders were just as greedy and vicious as ours are and you take that to mean I don't like the Haitians. Screw off you sophistic jerk. Some one disagrees with an opinion you have and their dirt. ___ Shove it.
Yeah, I'm stocking up and have been for a year, you don't like that, you think that's immoral or greedy and that's your opinion. It's not hoarding, it's being prepared until our garden is self sustaining. I'm not buying any more than necessary. If I overstocked for a year's supply that's hoarding.
It will not be mine or anyone elses fault here that food supplies will become a crisis. Mexico and South America, Italy, China etc, will soon cut off food shipments to America and our leaders over the years have voted tax laws that hurt the small farmers and we now import over 40% of our food.
The coming depression and the ensuing anarchy which will result is the fault of our government and our elected, (whom you always tend to support in many ways) that are to blame, not Americans who decide to insure they won't starve or freeze to death. Write your bull when you're eating snakes and shit.
You're absolutely correct ~RETIRE GREEN~ The problem now is, we should have pulled out of Iraq before we ever got there and impeached Cheney and his puppet Bush five years ago.
The point is, KEM and others, that individual actions, taken in aggregate, have huge impacts - in this case, very negative impacts. I thought you would understand this?
If every US consumer goes out in the next couple days and buys just 5 lbs of rice that they would not otherwise bought until they ran out, the inpact on short term world rice supply is going to be disasterous!
So, if you are true progressives, you would be conserving and NOT buying grains that you don't absolutely need during these critical times. But no; it appears that USAns, even "progressive" ones, are so indoctrinated in the gospel of selfish individualism that they are blind to this fact!
Why is this so hard for all of you liberals, or progressives, or whatever you call yourselves, to understand???
The operative word for all so-called progressives should be: "Solidarity", which means: "an injury to one - in Haiti, Phillipines, or wherever - is an injury to all!"
USAn, hoarding is a classic case of prisoner's dilemma - do you betray your accomplice (hoard food) for a lighter prison sentence (less hunger), or do you stay silent (refuse to hoard), hoping, praying, that your accomplice also stays silent so that you both receive lenient sentences (fuller stomachs) and remain friends.
Unless your accomplice is a close family member so that you know how he/she will react in this situation, the most rational choice is to betray i.e. to hoard food.
Whatever people want to call themselves - "progressives", "liberals", "conservatives", "conservationists", etc - these are all artificially created identities. Ultimately, we can't escape our HUMAN identity, and it's this, coupled with our instinctual impulses, that lead us to hoard, even if it makes the situation worse.
The only possible way to avoid hoarding - without government or retailer intervention, that is - is perfect information. If everyone knows exactly how much food there is, how much supply there will be in a week from now, and what everyone else is doing, a more rational and less selfish response might be made.
Notice how Peter Mandelson wants poorer nations to let their people go hungry (maintain exports) so that us "rich" Westerners can maintain our materially rich lifestyles, fooling ourselves that every country in the world can live like us if only they got their act together.
www.markcurtis.info for those that want to know all about the barbarity of Britain's foreign policy.
I think 1984 is arriving late and now that I m almost finished reading 1984 and where people in jail will hord crums in there coveralls, citizens that have to make razors last 6 weeks or more. Food is scarce. Ministry of Plenty means "Shortages". Welcome to 1984 everyone.
I wonder about this statement from the article, "Shops said Filipino residents in the US were also making large purchases to send to relatives in the Philippines, where a shortage of supplies is causing concern."
Wouldn't it cost quite a bit of money to buy rice from Wal-Mart in the US and send it to the Philipines? Why not just send money to your relatives instead. Or even better yet, get a friend in Taiwan to send free rice...
http://www.taipeitimes.com/News/taiwan/archives/2008/04/25/2003410204
But for all we know the article could be talking about Filipino government officials buying all this Wal-Mart rice. Maybe they can arrange to ship it for free. I doubt if just ordinary Filipinos are mailing rice back home.
What was the point of getting rid of the US-backed Marcos dictatorship of the Phillipines if it was to just be replaced with a US-backed polyarchy which cannot even provide enough rice for its people?
Why should one expect that US-backed regime change lead to anything different than planned food shortages such as in Haiti and the Phillipines?
Perhaps Bush has a beef with Chinese restaurants...
Apparently, most of the soy "developing" countries grow is for export to industrialized nations as animal feed.
Perhaps these countries would be better off, and they'd be less rice shortages and less need for food "aid", if we let them feed their own people, not our animals so that we can gorge on meat like Henry VIII.
Further to USAn's comment that "progressives" should always refrain from hoarding, I am one of those who don't hoard, who will listen to government announcements to use only what I require.
The problem is the world isn't made up of people like me. While "everyone" over Christmas panics and hoards food, I behave normally. The result: when I go the shops, certain food I want is sold out.
USAn, will you give me the food I can't buy over Christmas, or will you let me "starve", claiming it's my own silly fault?
When it comes to one's own survival, the prisoner's dilemma is very real, and many of us are forced into doing what we don't want to do.
~USAn~___ What I understood from your stupid post was, you were being critical of me, as is your wont as usual and you added a snotty and unnecessary, lying jab about how you see I feel about Hatians.
I don't go out and hoard when there is a shortage, I stocked up when there was none and that stocking up didn't create any food shortages. The shortages are due to the government insurng food is used for ethanol fuel, instead of hemp or corn stalks and the now high cost of fued, which is primarily caused by Bush having his fun playing war games with real bullets.
I stocked up for an emergency if necessary. Have you ever heard of a pantry, you mouthy, sophistic nitwit?
British officials say they hope the food price shock will provide impetus for a long-delayed deal on liberalising world trade, known as the Doha round. ... They also point out that the price rise could bring much-needed income to rural areas in Africa and elsewhere in the developing world if farmers are given enough support to respond.
British officials are of course using the food crisis to escalate the very policies that created the crisis. As part of their neoliberal scam they try to inflame greed by suggesting farmers exploit the price inflation. The intent is to mask over the fundamental issue of food independence/security. British officials are cultivating two components of the greed institutions - Thatcher's legacy and solidarity with capitalist/imperialist blood brother US.
Surinam set up an emergency cabinet committee to seek ways to dampen food prices.
Surinam is of course pursuing the responsible course in contrast to the UK/US imperial path.
Hmm...I had no idea stocking up was an abomination.
Here in the northen midwest, it's considered prudent to have a few month's supply of food on hand.
And most of us folks who stock up aren't stingy. I've removed items from my pantry when the food pantry has been very low or the family down the street is in difficult financial straits.
KEM, I made a couple of posts defending you. I'm not being critical, but even "stocking up" will have an adverse effect - if everyone did it!
An analogy is a run on a bank. Everyone rushes to withdraw their money - not to go on a spending spree, but just to "stock up" with cash for normal, future expenses. However, runs on banks cause banks to fail, as they can't meet their financial obligations.
By only buying food you immediately need, you are effectively making a food "deposit", which can be "loaned" out to others. However, if everyone suddenly decided to stock up, there'd be a run on these "deposits".
So, as far as the economy is concerned there is little difference between stocking up and hoarding. Stocking up will cause a supply shock, prices to rise, and shortages - and it's the poorest who'll be hit worst.
However, all this assumes the agricultural industry is well run to meet the needs of people, and it isn't, as you've pointed out in your post - and there's even more to it than you mentioned.
Let me give this extract from a business article about the food situation in Pakistan to show that even those that "hoard" are not to blame:
"Hoarding is another issue, which has contributed to rising inflation. The sugar crisis speaks high about the failure of government machinery. Cartels in Pakistan are easily formed to manipulate the market - cement, wheat, sugar, even in some cases, milk and mutton/beef and chicken markets behaved like a monopoly and artificial shortage was created in the market to raise prices. It seems that hoarding is one of the important determinants of rising food inflation. Thus the responsibility lies with the government to break the cartel and provide relief to the poor consumers."
I don't quite know what adjective to use to describe how I feel about the concept of hoarding in the US. I just have to look in my pantry and realize how lucky I am to have so much food. I could eat for several months on the food I have. I may not have much variety or the usual quantity but I would not starve for quite some time. Those who hoard are priviledged to have the money to buy more than they need for the near future. Are those who are hoarding rice, buying it up because there may be a shortage? Do they really want that much rice? Since so much of our food is corn or soy based should we start hoarding those as well? My concern is for those who can't even afford any food.
I would never have "stocked up" except for the fact that I could see this very possible depression coming five years ago. I'm preparing for it, because there won't be any food to purchse when the depression hits. Anyone else who wishes to not prepare, that's fine with me.
Hell, our government USED to "stock up" for emergencies, all types of grains, millions of tons. That wasn't considered hoarding.
Plant a garden. Increase your garden and share.
I'm going to pretend to hoard food. Then when people come to steal it I'll eat THEM! Nummy nummy and KEM, Canadian assfat is way tastier than USApes assfat. Also, free fudge to anyone who comes wearing BBQ sauce.
I know, this will be alot funnier when I'm starving.
Over half of our garnden's crop goes to the Home For The Homeless shelter in town and the rest is shared by us and our neighbors. Last year our garden failed, as there were none of the over 20,000 known specie of bees and no other pollinating inscects or humming birds.
Another thing, it's easy to say, "Grow a garden", and it is not all that difficlt if you have the land. It's also rewarding and fun. However, it is not easy to supply even a third of the food needed by a family in a home garden. We didn't raise wheat, oats, barley, rice, cooking oil, sugar, salt, pepper, yeast, cornstarch, and many other things that don't grow well in every climate. You also need ample water if you live in a climate such as we have. Then you can plant a nice big garden and foul weather destroys it. That's why farmers "stock up".
It couldn't be any funnier.
I kid because I love.
I would love to stock up but with no full time job, I'm lucky to make a hundred dollars a week right now, I only have enough food to last me and my wife two weeks if we stretch it. Beans and corn bread is good but they get tiring after a while. Same with rice.
Things are a lot worst off in this country than most people realize. That includes the people posting right here on common dreams too. Somethings going to break soon.
I'm stocking up on stones, for neighborhood soup kitchen, is that hoarding ?
Depends upon what kind of stones ~Namaste~. River rocks or kidney stones.
Hey glad you wrote that ~NAM~. Lets say a guy decides to convert ten percent of his pay every week to gold coins or diamonds. __ Is he hoarding?
His neighbor decides to convert ten percent of his pay every week to beans and rice. Is he hoarding?
Comes the depression. One has a years supply of beans and rice and the other has a litle skiver of gold coins or diamonds. There is NO food available to purchase. ___ Which one is better off?
The dude with the food has likely got daughters of marring age, and that shining metal would sure look good on them, to increase the likelihood of a "good" catch. And he sure could use a son-in-law to help with the hard work.
I suspect that through the barter system, the dude with the gold/silver might prosper SIGNIFICANTLY with both food and perhaps a wife, depending upon how much he has (and how pretty the farmer's daughters are)
It's the oldest story ever, and it's never really old is IT?
Nope. But I never ate any gold. Besides, I forgot to mention the two good lookin daughters and the guy with the gold and diamonds is gay.
So I show up with a load of beans and rice and tell the guy I'm a Mormon and get both of the young gals. __ That's why John Young was called Bring-em Young.
You did it again, you didn't anwswer the questions. Were they hoarding? You changed the subject. ___ So there. We need an investigation.
"Were they hoarding? "The slippery slope is reminiscent of altruism and issues of Star Trek addressed Do "The needs of the many, OUT-WEIGH the needs of the few"
I suspect that survival is the ULTIMATE ISSUE, and having :
(1.) more people die sooner (hoarded food re-distributed equally - runs out before more can be found) vs.
(2.) a fewer number of people surviving longer -- and thereby possibly actually surviving
What I would do is want to be part of the 2nd group, and by being a survivor, wouldn't care too much about the opinions of those who starved from lack of preparation.
You're going to be a regular _ s a i n t _ for all those long-lost-relatives who coming to visit you, just like winning the LOTTO
Were they hoarding? Yes or no is acceptable and appropriate. __ Shame on you. But fun.
SURVIVAL is its OWN reward,
and at that point hoarding is re-framed as good planning. History is always told from the perspective of the winners ( so let the whiners have some cheese with it )
OK, no.
I would not use the word "hoarding" in either of those examples. If we did, then having a savings account would be hoarding. One chose to save his with gold and the other with food. Some people buy antique vehicles and save them for their retirement. Some buy them just to have them, they won't ever need them.
But if one decides to put some of his savings in food, some call that hoarding. That's because they know food and water are essentials and you can't eat gold, diamonds or cars. So if they haven't saved any food, they point fingers. Now if beans become truly scare and someone tries to get more than they can use, that's hoarding.
Correct. ___ You may now have a rice cake.
In CANADA the shelves are full of rice the price has not changed one cent in the stores I shop in and they are national chains. I can still get a pound of rice for 40 cents. Bread flour something I use allot of since I make my own bread etc is still on sale and has been for well over a month now.
I am getting a feeling the shortage is doing the Wally Mart /Eron shortage game. It is the same as gas prices, unless the USa/israel plan to attack IRAN why will the price of gas go up as they are saying by summer???
Attention WAL-MART Shoppers:
Due to the international shortage of garden gnomes, we regret to announce that we must limit our sales to five (5) figurines per customer. We apologize for any inconvenience as we know that many of you had counted on Wal-mart for these essential purchases. However, we still have a few left on Aisle 9. Please act quickly as we do not expect our stock to last long. No dealer purchases please.
----------
A few days earlier, high above the Pacific Ocean in the Zoran blimp, Wal-Mart CEO Lee Scott calls to order the meeting of the Wal-Mart Board of Directors:
"Good morning Gentlemen and token Ladies. As you know, Wal-Mart has now successfully cornered the international rice market and I am pleased to announce that prices are skyrocketing. However, we have a problem. Because the economy is in tatters, no one can afford to buy our rice. I am open to suggestions. Yes Ms. Jones?"
"Thank you Ken. How about we donate tons of rice to food banks? People are starving in Haiti and this could be a great public relations move for the compnay."
Suppressing hidden anger at the suggestion, Ken replied. "An interesting suggestion Ms. Jones. On your way to get us coffee, as a reward, why don't you go down to my wine cellar and pick out a bottle for your personal use?" After Ms. Jones left the room, Chairman Scott asked for more suggestions.
Ms. Smith, the newest member of the board piped up. "How about we lower our price so that we make just a reasonable return on our investment rather than the obscene profit we now realize? That way we will be able to sell our stock rather than having it rot in the warehouses."
Scott commended her idea and suggested that she check to see what was keeping Ms. Jones so long. After Ms. Smith left the room, Scott chuckled that it sounds like the Board was starting to believe their own propaganda about always low prices.
Finally, Kenneth Laid timidly raised his hand. "Mr. Scott, I know that this is out of the ordinary, but what if we put an artificial limit on how much rice any one person could purchase? If the consumers perceive a shortage, we will be able to sell our entire stock at the highest price. The limit should be high enough so that it does not really restrict sales, say eighty pounds per person. I believe with the right press release, we could even get free advertising on liberal websites."
Scott was intrigued. "But wouldn't that cut into our sales to large customers?"
Laid continued. "I have an answer for that. We can instruct our managers that they can slyly suggest to selected customer that for a small consideration, they could look the other way when large purchases need to be made. We could even let the managers keep 25% of the bribes collected."
Scott beamed. "Excellent plan. Andy, see that it is put into place immediately. However, hold the percentage down to 10%. I see that the Board is unanimous in its approval. Now on to our second item of business. It seems that one of our buyers misplaced a decimal point and we have ordered 100 times as many garden gnomes as we think that we can sell. Any suggestions?"
So when I can and freeze extra garden produce, is that hoarding or does hoarding only apply to foodstuffs bought at the store?
Hoarding to me implies being selfish. As a child, the ant and grasshopper story was one that taught the lesson of preparedness. Nothing wrong with stocking up.
Oh wow, ~BYSTANDER~ you must have secretly taped that Wal-Mart board meeting. You know what? If you were just having fun with that post, you missed the boat. That's probably just how it happened.
Guess we'll just trot over to Sam's Club and take our kids with us. We each buy 80 pounds of rice and then go back in the store and each get another 80 pounds. That should do it since we don't like rice anyway. But if we do it often enough, I'll corner the market and sell rice at the swap meet in one pound plastic bags at two bucks a pound.
Oops, never mind, it's twenty miles to town and the price of gas goin back and forth to town and the swap meet would ruin me.
Well, in spite of the probably bogus rice shortage here in the U.S., the real possibility of a depression is not bogus. The post by ~RETIRE GREEN~ is quite appropriate.___ Stock up.