The Upcomming Global Food Crisis?
There has been a lot of talk in the recent years about the upcomming economic crisis. According to some experts, we might face the falling price of stocks, crypto currencies etc. However, there might be another crisis rarely anybody speaks about - the global food crisis.
Those of you, who do not live in Europe, may be surprised to hear that the prices of dairy products in Europe skyrocketed within a year (e.g the price of butter increased around 40%).
According to a member of the management board of BGŻ BNP Paribas, Bartosz Urbaniak; that might be just a start.
Business Insider Polska quotes the statements Mr. Urbaniak made during his interwiew with the Polish newspaper Rzeczpospolita (source: https://businessinsider.com.pl/finanse/handel/rosnace-ceny-zywnosci-i-kryzys-zywnosciowy-wg-bgz-bnp-paribas/slsxs5w).
His view is that the food prices could rise around 100% within the next 10 years. This increase could trigger the global food crisis.
Further, the start of this crisis could be expected in Asia.
Another indicator would be the actions of hedge and investment funds.
Jim Rogers
Mr. Urbaniak is not the only person, who mentioned the possible rise of food prices. Something similar was being said by Jim Rogers.
According to Jim Rogers, following factors could trigeer the rise of food prices:
- Farmers are getting older and there are no young people willing to take over the farms,
- agriculture has been a tough business for decades,
- the world consumes more that it produces,
- central banks keep printing money.
Conclusions
It could be, as Rogers says, that one day we will see farmers driving ferraris. In other words, argo sector is definitely worth taking a look at.