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The Forum > Article Comments > Can the market really provide food security > Comments

Can the market really provide food security : Comments

By Michael Santhanam-Martin, published 20/5/2011

If food producing nations refuse to trade food because of famine at home, will the market continue to provide our needs?

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Quote from yabbie (page one);

“The cost of wheat has little to do with what you finally pay for
a loaf of bread. It might be 20-30c. The real cost is the food
chain from the farm gate to the consumer. But companies will use
any shift in global grain prices to cry wolf and increase prices,
often for their own bottom line benefit.”

This is actually the problem, the increasing in-efficiency between the farm gate and retail.
The increasing also reflects against the cost structure for the wheat grower, so while the farm gate does not change much, the cost keep climbing as urban areas reduce efficiency by demanding a great share of the wealth through regulations.

Answer is simple, regulate the same trading conditions for both wheat growers income as his costs.
The difference between world market price and domestic price, is actually a subsidy to the urban sector of the economy.

In the so called country of fair go, how can we have a group on world market income’s being regulated to subsidize those on domestic incomes
Posted by dunart, Monday, 6 June 2011 4:51:21 PM
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