OK, I’m going to go out on a limb and say that I think that this year’s climate extremes are linked to human-caused climate change. We might not really have the definitive answer on whether that is true for 20 years, but I would like nothing better than to be proven wrong about the linkage I’m making today. From a global food supply perspective, the effects of weather on 2012 food production is problematic no matter what its cause. As bad as it seems, it might just be a “shot over the bow” relative to what me might expect in the future.
Yesterday, the Food and Agriculture Organization (FAO) of the United Nations released it’s monthly update on global food trade pricing. The overall “Food Price Index” that combines all categories did decline slightly, but less than the previous month. The index is still substantially higher than it was at a comparable period during the last cycle.
On Thursday (6/7/12), the Food and Agriculture Organization of the UN (FAO) released it’s indices for food prices in international trade. Most of the news coverage was upbeat because May showed the largest drop in some time. For instance, the allAfrica website had a headline, “FAO Food Price Index Drops Sharply.” It was a 4% drop; however that comes after several months where the index stayed flat and failed to show the sort of major correction that occurred after the last spike (2007-9). Even with the drop in May, the index is still nearly as high as it’s highest level in that previous spike.