Saturday, May 10, 2008

At the Business End of the Global Food Crisis

Maybe you’ve heard, maybe you haven’t -- although if you’re a BBC World listener, there’s no possible way you’ve avoided it -– there is a global market correction in the price of agriculture products going on and if you’re living in the developing world, that means rising food prices. Its not so much that food is missing from shelves, just that staples are more expensive for families already eeking out a living. So what’s it like at this end?

Well, it has certainly been interesting both at the Beninese level and in contrast to our West African neighbors. Here in Benin, it hasn’t been too drastic – flour is up 200 francs a kilo (about 50 cents) amongst other things. Rice, the big one globally, is up depending on type and source but because of a government subsidy on sacks sold in bulk things haven’t gotten too out of control yet. We’re still eating dried corn as the crop is still a few months from harvest, so not sure where those prices are going. And as for beef, the cows are pasture fed so feed prices don’t factor (as for the goats, they just eat the bountiful, bountiful garbage in the streets here.) For the most part people in town aren’t complaining too much, and barring some sort of catastrophe with the price of corn (price spikes that make it more valuable on the international market than being made into one culturally cherished goop or another here), I’m not sure it will hit too terribly hard in Benin.

As for West Africa, we have gotten some news about riots and strikes in normally peaceful Burkina Faso and unrest in the generally restless countries to our north (who knew the countries covering the Sahara desert would have a hard time producing food?!). Less is heard about the other coastal neighbors who seem to be in the same boat as Benin. And in the case of Nigeria, who knows what their problem is today.

What’s more interesting is following the rhetoric from the UN, the World Food program and African leaders in general calling for “a revolution in African farming” that would make the continent self-sufficient. After all, the bulk receives good rainfalls and has fertile soil. Callers to radio programs wax poetic about better governments having better farming policies for the people, rage against the unforgivable sin of rich country agricultural subsidies and elocute in flowery language about what is possible with the grace of the divine.

Basically, everyone thinks this is everyone else’s fault and are waiting for the rules of the game to be changed before they play.

Well after a year here there is one undeniable fact that is overlooked in all these arguments, a habit whose ubiquity is limiting total output of staple foods.

THEY'RE STILL USING THIRD CENTURY FARMING TECHNIQUES!!!


Seriously people. There is just so much one can sow and reap while doubled over using a hoe with an 18” handle and nothing else. Burning instead of tilling the soil. Planting crops like In’gams because they’re easier to manage without any technology invented after the Bronze Age. Not an ox drawn plow in sight, much less a tractor. Talk all you want about the evils of monocultures, but this is one of those cases where – to quote Steve Meyers - doing something the second least efficient way would be an improvement.

So yeah, life at the other end of rising food prices. However, we do take comfort in the undeniable fact that moments of crisis often end up being the catalyst for the change which has been resisted up to that point. Maybe five years from now there will be large commercial farming operations to go along with the family plots. Not sure we’re holding our breath.

1 comment:

sarah said...

Steve,

I loved your article about rising food prices... I keep thinking about this to. Especially after my trip to Ghana. Here are some thoughts for you:

1)Rice isn't the only fixed price here in Benin. If you think about it, we've got price fixes on everything from cement and gas to flour to corn to... well, you get my point. WE ARENT A FREE MARKET IN BENIN!

2) If you go anywhere else with a more open economy, you see the pain. I just got back from Ghana, which is why I stopped just taking the radio reports as another thing to talk about; they are really hurting over there! In the 2 weeks of my visit, I actually saw prices go up!!! Everyone I spoke to seemed scared and yet resigned... almost like they couldn't help but think, "And this is the beginning?!" And that's Ghana, with its huge Lake Volta, with it's longer rainy seasons, with all it's incredibly developed economic activity...

3) My real thought is how long can the Beninese government protect its people? They have to be eating huge losses for all their subsidies... how long before they raise all those set prices???

4) Benin's being smart in some ways though. I've got all this farming friends that I've been talking to, and the word on the street is that the Govt will sell you the NERICA grains of your choice in exchange for the equivalent $$ amount of your produce, plus the promise to buy up anything extra they want to sell at the same price. Can you imagine how much they could sell that for 2 doors down in Ghana, or anywhere close by for that matter?!?!?!

Okay, those were my thoughts. Let me know if you get any more info on any of this. It's becoming one of my big interests. Seriously, if you want to see what's going on in more free markets, travel. You'll see the pain everywhere.