Sean Wheller - Rice Prices - Pressure on the Consumer Grows

Rice prices and other grain-based staples should be set to go through the roof judging by the Key Commodities Index which shows an incredible spike in the Wheat Spot.

All this makes me wonder if we could see a food shortage in South Africa or not. Most of our population have Maize products such as Maize Meal as a staple. Such products are subsidized by the state, but if there is a shortage, I wonder what effect it will have on millions of poorer South Africans.

We have seen food riots in some parts of Africa. Is it possible that the same could happen here?

If it did, could it be the straw that breaks the Camels back?

National Credit Act, New Rates and Taxes Bill, Interest Rate Hikes, Inflation, Load Shedding, Crime, Emigration, everything seems to be going up and CPIX does not look to good such that people are now talking about another 1 full basis point shift before the year is out.

All this as a back drop with a food shortage added for extra flavour, could it tip things beyond boiling point?

Questions, questions and important ones at that. Somehow I can't help but look forward and think of the future impacts of the events taking place now.

In 2-years from now South Africa must host the world cup. I cannot help but think that current affairs may place a damper on the whole event. The whole situation right now brings amazing opportunity, but also begs some pre-emptive thought about risks and how we can hedge against them.

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Geoff D - Mr!

| 90.196.138.xxx | 2008-05-01 05:41:17

Perhaps the mobile money has moved from Internet startups (crashed) to housing (now crashed) into Food. It can't all be down to Biofuels, and I don't think the world's population has suddenly jumped in the last 6 months.

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