Reports show demand growing, production declines estimated at 30%
Posted: January 10, 2010
9:53 pm Eastern
© 2010 WorldNetDaily
Beginning in 2009, global agricultural markets faced a supply and demand imbalance, caused by a substantial drop in output resulting from the financial crisis and extreme weather around the world.
At the same time, growing economies in Asia have begun consuming record amounts of raw goods, particularly food staples as consumers move to higher protein, higher calorie diets. When supplies are reduced and demand is constant or growing, prices normally rise. Industry observers and economists remained mystified by the low agricultural prices in spite of this trend.
"Instead of adjusting production estimates down to reflect decreased production, [the USDA] adjusted estimates upwards to match increasing demand from China. In this way, the USDA has brought supply and demand back into balance (on paper) and temporarily delayed a rise in food prices by ensuring a catastrophe in 2010," he said.
DeCarbonnel points out that across the Midwest United States, many counties already have been declared federal disaster areas, which is defined by a decrease in crop production of at least one type by 30 percent or more. Hundreds of other counties across the country have experienced crop failures of 10-20 percent, not enough to qualify as federal disaster areas but still contributing to the overall poor harvest.
In some states, including Oklahoma, Louisiana, Arkansas and Alabama, the majority of counties have been declared disaster areas, and yet the USDA is predicting record harvests.
DeCarbonnel's conclusion is that the government is intentionally covering up the nature of the food shortage because if the public realized the true extent of the crisis and/or prices rose dramatically, economies could collapse and governments could fall. FULL STORY