Food price inflation and the role of organic agriculture

The unfortunate reality of food price inflation, as pointed out in a recent article appearing in The Independent, is that those on fixed incomes – the unemployed, disability beneficiaries, and retirees – tend to be the hardest hit. At least that’s the case in most developed nations. But as the latest report from the UN’s Food and Agriculture Organisation (FAO) points out, high grain prices are hitting, and will continue to hit, developing countries the hardest. In some countries, such as in Mexico, Morocco, Yemen and Senegal, rioting has erupted due to the rising price of cereal based food staples.

According to The Independent’s Michael Savage, there are essentially three factors underpinning spiralling global food costs. These are:

• Higher oil costs;
• Increased demand driven largely by China’s increasingly voracious appetite for global resources, including foodstuffs; and
• The diversion of much of the world’s cereal crops away from food production to biofuel production.

With the UN suggesting that the world’s population will exceed nine billion by 2050, the current disquiet in relation to spiralling food costs may be nothing more than a prelude to more significant unrest.

While Michael’s article focuses on increases in global grain and cereal crops, the most dramatic food price increases, which many developed countries have yet to factor in, will relate to sources of animal protein.

Most animals reared for human consumption are fed grain. The conversion of grain into a source of animal protein fit for human consumption is not an efficient one. It is estimated that for every pound of lean beef produced approximately 20 pounds of grain is required. Accordingly, any increase in grain prices will also impact cattle, pig and poultry farmers.

Additionally, the as yet unaccounted for impacts of climate change, the costs of which will be far higher for animal protein production than grain production, means that the developed world is not currently paying anything close to the real price for animal protein. As social pressure and political will turns into legislative imperative, the real costs associated with animal protein consumption will inevitably be passed on to consumers.

Add to this the fact that China’s appetite for global protein sources is predicted to increase dramatically in the coming years and there exists the potential for many consumers who currently enjoy animal protein to be priced out of the market altogether.

Unfortunately, it seems inevitable that competition for sources of animal protein between those living high on the food chain and those on the bottom rungs of the economic ladder will become more pronounced.

Does organic agriculture have a role to play?

It is often argued by many that farmers applying organic agricultural principles are less efficient than their conventional counterparts. This argument, when put to the test, is often found wanting. Indeed, many scientific studies have shown that organic agricultural practices, when applied to both grain and animal protein production, are more efficient and cost-effective than so-called conventional techniques.

Additionally, there is a strong push within the organic movement toward sourcing food locally. This decreases, at least to an extent, the impact that higher oil costs have on food production.

Accordingly, while organic agriculture is by no means the panacea to all of the challenges and issues facing the world, it certainly has an important role to play.