World food crisis: Can the U.S. meet surging wheat demand?

U.S. wheat crop

It is impossible not to notice that in the past year food prices have increased. Prices have gone up due to rising global demand and that includes sugar, cocoa, coffee, corn product and, yes, also cereals. Wheat, one of the major commodities, is experiencing shortage. Wheat supplies are tight due a number of set backs.

Big wheat producer and exporters, Australia and Canada, have suffered crop damage due to wet weather and excessive rain. Wheat production in Russia, the world’s third- biggest grower last year, suffered severely after the worst drought in at least half a century in Russia, In fact, now, the dry weather in Russia may keep the country out of the export market for another year, and it may rely on Kazakhstan and Ukraine to meet a domestic grain shortfall, Additionally, there are signs of rather alarming dryness in a number of Middle Eastern countries, especially major producers such as Iran, Iraq and Syria, in addition to Russia,

wheat products

Because of these conditions, the U.S. produced wheat is the only savior of the world food crisis. The U.S. is world’s biggest exporter and accounts for 27 percent of global wheat trade. However, the experts think, the U.S. may not have the logistical capacity to meet rising global wheat demand. It is expected that the increased demand from the U.S. may lead to supply bottlenecks, delaying deliveries and intensifying competition among importers.

Wouldn’t it have been better, rather than spending on war or bailing out crooked banksters, to spend some stimulus money, during recession, to enhance our crop production and transport abilities. The whole world will be thanking us.

That is something to think about!

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