Food prices continue to rise

It's happening around the world, and there's no sign of an end to it any time soon:

Food prices have soared to record levels around the world, raising fears that poor countries could face a crisis similar to the one that led to rioting and rationing two years ago.

“We are entering a danger territory,” Abdolreza Abbassian, an economist at the United Nations’ Food and Agricultural Organization (FAO) told reporters Wednesday.

From the Globe. And what are the main reasons for this?

Prices for many agricultural commodities started rising last fall largely because of poor grain crops in Canada, Russia and Ukraine. They have spiked even higher recently because of dry weather in Argentina, a major soybean producer, and flooding in parts of Australia, which has wiped out many wheat crops. The price of wheat has jumped about 17 per cent in the last month while corn is up 11 per cent. Both are now close to two-year highs. Other food staples have been soaring as well, including canola, up 43 per cent last year, and sugar, which hit 30-year highs.

Now it's premature to say that this is clearly because of climate change; it's always a bit dodgy to attribute any particular weather event to climate change (or, for that matter, to claim it as a counterexample). However, I think it's safe to say that this sort of thing will become more common as the climate suffers further disruption.

Naturally, when countries suffer from poor crops, some of them will impose restrictions on the export of said crops. Governments generally want to ensure that their own people are fed first, after all. Well, some don't think this should be allowed:

The environment minister, Caroline Spelman, today risked incurring the wrath of many major food-growing countries by saying it should be illegal to halt food exports even at times of national crisis.

In a clear reference to Russia and the Ukraine, which temporarily halted exports of wheat and other grains in order to protect supplies for their own people during an unprecedented heatwave last year, she said no country should be allowed to interfere with the global food commodity market.

From the Guardian. Of course, Spelman presumably doesn't think that commodity speculators should be restricted from such interference; that's part of business after all. It's only when sovereign nations do so for the benefit of their own people that it becomes unacceptable.

Incidentally, thanks to NAFTA, Canada faces a similar restriction with regards to energy. If we face a shortage in the future (say a reduction in the flows of the Saskatchewan and Churchill rivers as a result of melting glaciers) and need to reduce our energy exports, any reduction in exports must be proportionate to a reduction in domestic consumption -- even if it means brownouts here. This makes no sense with energy, and it makes no sense with food either.

Oil shortage looms in Pakistan

It's been reported that most of their refineries are on the verge of bankruptcy:

ISLAMABAD: The country may plunge into the worst imaginable energy crisis as virtually all refineries are teetering on the verge of financial default and may close down operations by Jan 15.

All the oil refineries of the country, currently working on a negative gross revenue margin, and with their borrowing limits already exhausted, are likely to shut down within the next two weeks following their expected default to retire the existing L/Cs to import crude oil. The shutdown would mean no oil supplies for thermal power generation plants and the picture turns outright dark.

This harrowing scenario of the looming crisis was given to The News by a senior functionary of the Ministry of Petroleum and Natural Resources, speaking on condition of anonymity.

Source (h/t Rajiv in this iTulip thread). Of course, claims of this sort can't necessarily be taken at face value, but this seems considerably more credible than some other stories of this nature; Pakistan is dependent on imported fossil fuels for much of its electricity supply, and its government may not have the resources to bail out those refineries. If I was them, I'd be dropping subtle hints with the Americans about the effect on the war effort in Afghanistan in the event that Pakistan falls into crisis. I have a feeling that Uncle Sam would quietly cough up the necessary cash if it came to that.

UK oil output falls 10%

Not good news for Britain, though it might at least force them to move towards alternative energy more quickly:

Oil production from, the UK Continental Shelf in the third quarter last year fell by 10% despite a total of seven new fields being brought onstream, providing further evidence that the UK can no longer rely on output from the North Sea.

From here, via Mega in this iTulip thread. I presume Norway is in the same boat, since they're on the North Sea as well. In any case, we can expect to see a lot more of this in the near future.

UK to ban plasma TVs

Definitely a good idea. I wonder if they'd have had the nerve to do it if LCD screens weren't widely available, though.

Energy-guzzling flatscreen plasma televisions will soon be banned as part of the battle against climate change, ministers have told The Independent on Sunday.

"Minimum energy performance standards" for televisions are expected to be agreed across Europe this spring, they say, and this should lead to "phasing out the most inefficient TVs". At the same time, a compulsory labelling system will be drawn up to identify the best and worst devices.

The moves, which follow last week's withdrawal of the 100W incandescent lightbulb, are part of a drive to slow the rapid growth of electricity consumption in homes by phasing out wasteful devices and introducing more efficient ones. Giant plasma televisions – dubbed "the 4x4s of the living room" – can consume four times as much energy as traditional TVs that used cathode ray tubes (CRTs).

From the Independent.