Captain Gh3y
Rhinorhondothackasaurus
Food prices are set to double
AUSTRALIAN food prices could double within a few years on the back of global shortages and soaring fuel prices.
The drought, a shortage of water and agricultural land, insatiable demand from China and India and a lack of investment in research have combined with high oil prices to create a grim future for Australian families.
Australia has had its worst rice crop in more than 80 years and rice, wheat and corn prices have more than doubled in the past two years as a result of the drought.
University of Technology Sydney science professor Julian Cribb said fuel was the main input to agriculture, serving farm machinery and producing fertiliser.
Australia also had the added problem of having to transport its food over vast distances.
"That's all going to impact on the consumer at the supermarket checkout, so you could easily see food prices doubling in Australia over the next few years," he said.
Australia was also guilty of taking water away from farmers, building on prime agricultural land and failing to invest in science and technology that would boost food production.
"Almost every country you look at, cities are taking the water away from farmers so there's no longer enough water to produce the food.
"We can see that on the Murray Darling in Australia but it's true in China, India and other countries," Assoc Prof Cribb said.
Australian Farm Institute executive director Mick Keogh said food prices were predicted to rise by around 20 per cent in the next financial year.
Although Australia won't run short of food, consumers would certainly pay more, he said.
"It's interesting that the OECD, in looking at the global situation, pointed to Australia's drought as a factor (in higher global prices) and the reason is that Australia's such a big exporter," Mr Keogh said.
The OECD and UN Food and Agriculture Organisation say the drought in Australia is a contributor to rising global prices.
Australia's 2000 rice growers on average harvest 1.2 million tonnes - but this year didn't even crack 20,000 tonnes.
Ricegrowers Association of Australia president Les Gordon said growers had received no water allocation for two years and there were no signs of rain.
"In the case of the Murray Valley, it's the second year with virtually no crop there and we've had a zero (water) allocation for two years," Mr Gordon said.
"We understand there's a drought, we understand there's no water in the dam, but particularly in the case of the Murray Valley, the price of rice has doubled and heading for tripled since any of us last grew a crop."
At least 46 per cent of a crop producer's cost is fuel or fuel-related. But NSW Farmers' Association president Jock Laurie said the farmer didn't pass on any of those costs to the consumer.
"Whenever you get increased fuel prices, you get increased transport prices right from the farm gate."
Sauce: http://www.news.com.au/business/money/story/0,25479,23791677-14327,00.html
AUSTRALIAN food prices could double within a few years on the back of global shortages and soaring fuel prices.
The drought, a shortage of water and agricultural land, insatiable demand from China and India and a lack of investment in research have combined with high oil prices to create a grim future for Australian families.
Australia has had its worst rice crop in more than 80 years and rice, wheat and corn prices have more than doubled in the past two years as a result of the drought.
University of Technology Sydney science professor Julian Cribb said fuel was the main input to agriculture, serving farm machinery and producing fertiliser.
Australia also had the added problem of having to transport its food over vast distances.
"That's all going to impact on the consumer at the supermarket checkout, so you could easily see food prices doubling in Australia over the next few years," he said.
Australia was also guilty of taking water away from farmers, building on prime agricultural land and failing to invest in science and technology that would boost food production.
"Almost every country you look at, cities are taking the water away from farmers so there's no longer enough water to produce the food.
"We can see that on the Murray Darling in Australia but it's true in China, India and other countries," Assoc Prof Cribb said.
Australian Farm Institute executive director Mick Keogh said food prices were predicted to rise by around 20 per cent in the next financial year.
Although Australia won't run short of food, consumers would certainly pay more, he said.
"It's interesting that the OECD, in looking at the global situation, pointed to Australia's drought as a factor (in higher global prices) and the reason is that Australia's such a big exporter," Mr Keogh said.
The OECD and UN Food and Agriculture Organisation say the drought in Australia is a contributor to rising global prices.
Australia's 2000 rice growers on average harvest 1.2 million tonnes - but this year didn't even crack 20,000 tonnes.
Ricegrowers Association of Australia president Les Gordon said growers had received no water allocation for two years and there were no signs of rain.
"In the case of the Murray Valley, it's the second year with virtually no crop there and we've had a zero (water) allocation for two years," Mr Gordon said.
"We understand there's a drought, we understand there's no water in the dam, but particularly in the case of the Murray Valley, the price of rice has doubled and heading for tripled since any of us last grew a crop."
At least 46 per cent of a crop producer's cost is fuel or fuel-related. But NSW Farmers' Association president Jock Laurie said the farmer didn't pass on any of those costs to the consumer.
"Whenever you get increased fuel prices, you get increased transport prices right from the farm gate."
Sauce: http://www.news.com.au/business/money/story/0,25479,23791677-14327,00.html
I will, after I finish university in 2011. 
