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Collapse of Australia's rice production contributes to price hike
Thu, Apr 17, 2008
AsiaOne

The collapse of Australia's rice production is one of several factors contributing to a doubling of rice prices in the last three months, reported The New York Times.

The increases have led the world's largest exporters to restrict exports severely, spurred panicked hoarding in Hong Kong and the Philippines, and set off violent protests in countries including Cameroon, Egypt, Ethiopia, Haiti, Indonesia, Italy, Ivory Coast, Mauritania, the Philippines, Thailand, Uzbekistan and Yemen, said the paper.

Drought affects every agricultural industry in Australia, not just rice - from sheepherding, the other mainstay in this dusty land, to the cultivation of wine grapes, the fastest-growing crop here, with that expansion often coming at the expense of rice, said NYT.

"The drought's effect on rice has produced the greatest impact on the rest of the world, so far. It is one factor contributing to skyrocketing prices, and many scientists believe it is among the earliest signs that a warming planet is starting to affect food production," it added.

According to the NYT report, it is difficult to definitely link short-term changes in weather to long-term climate change, but the unusually severe drought is consistent with what climatologists predict will be a problem of increasing frequency

Drought has already spurred significant changes in Australia's agricultural heartland. Some farmers are abandoning rice, which requires large amounts of water, to plant less water-intensive crops like wheat or, especially here in southeastern Australia, wine grapes. Other rice farmers have sold fields or water rights, usually to grape growers, said NYT

Scientists and economists worry that the reallocation of scarce water resources - away from rice and other grains and toward more lucrative crops and livestock - threatens poor countries that import rice as a dietary staple.


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