Mgmt

Why did global food prices rise?
Summary:
In the last 25 years, global food prices have been expiration downwards. This is thanks to the increasing productivity and output of the farm do principal(prenominal) worldwide. However, in 2007 prices went up dramatically.  There are two main explanations to this.
The first is an increased demand for food in rapidly developing nations such as China and India. Meat in particular has contributed to the rising prices as farmers have to feed their animals an great amount of grain in order to keep up with the meat payoff.
Second, there is the issue of bio-fuel subsidies. As both the European Union and the United States have adopted policies on the production of ethanol and bio-fuel to combat the problem of global warming, they are today giving subsidies to farmers to promote increased production. The subsidies have resulted in a larger production than what is needed for bio-fuel production, and thus a trim down number of other crops not subsidized for bio-fuel production.
Third, what is unfortunate in this situation is that high tariffs are shutting out producers of choice products that stinker be turned into bio-fuels, most notable dough cane, from the U.S. and EU.



One of the most notably clams cane producers (Brazil) confronts substance tariffs of about 25% in the U.S. and 50% in the EU. These outcome tariffs raise the price of sugar and makes it uncompetitive with corn and soyabeans thus breaking the chance of converting sugar into bio-fuels and ethanol. It is an unfortunate situation because sugar is seen as a more environmental friendly au naturel(p) material for bio-fuels seeing that the fiber removed from the cane can make ethanol. There are plans to increase production of bio fuels in the U.S. and EU however, neither political entity wants to reduce tariff barriers on sugar cane or remove subsidies of farmers that produce soy and corn for bio-fuels.
Report:
1/If the government policies promote the production of...If you want to get a full essay, order it on our website: Orderessay



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