ChineseRestaurantCapitalism

keeping the economy honest

Food prices at record high

Two interesting pieces of news.  First, food prices reached a record high in January according to UN, which has been a main factor for the latest unrest in Middle East.  Second, countries such as Gulf states, China and South Korea are buying land mostly in Africa to grow crops in search of food securities.  It seems ironic to me that Sudan and Ethiopia are part of these deals to export crops to foreign nations while their own countries have famines.  If foreign investments bring latest farming technologies to allow more efficient farming, then it could be a good deal.  But it’s only good, if what you get out of it is more than what you can produce at your own less efficient methods on the same land.

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