Financial Meltdown Worsens Food Crisis
The global financial crisis is exacerbating the existing food crisis, which was already sending food prices through the roof around the world. The Washington Post reports on the impact of China’s response for consumers in other countries:
China — the world’s biggest grain and rice producer and the biggest exporter of certain types of fertilizer — could see its moves having ripple effects on vulnerable countries.
[...] China’s new taxes on fertilizer exports, which went into effect Sept. 1, range from 150 to 185 percent. Chinese authorities said they need to ensure that prices are low at home to protect their own farmers and ensure an adequate supply of food for their residents.
Although the measure has been good for China, it has been devastating to other countries. A dozen Chinese fertilizer companies said they had stopped exporting this month.