With so much media attention on Cyclone Nargis and the endgame of the Democratic Primary, one story getting inadequate attention is the latest turmoil in Lebanon.

Sectarian strife is nothing new to Lebanon, but at least one Lebanese blogger suggests that the current unrest is being triggered by the recent spike in food prices.

The Federal Reserve cut interest rates again on Wednesday in an attempt to stimulate the domestic economy. While the combined impact of another rate cut and the impending arrival of stimulus checks in taxpayers' bank accounts may bode well for American retailers, the rate cut may also exacerbate the global food crisis.

That same day, Soledad Requena was one of 1,000 women banging pots and pans outside Peru's Congress, protesting soaring food prices. If the government can't increase subsidies on products like rice, bread and meat, she asked, "Where will we go to eat?"

How does cutting short term interest rates effect international food prices? Read more...

Photo: Finbarr O'Reilly/Reuters

For months we have been following increasingly urgent reports about food scarcity, rising prices and vulnerable populations. Last week, the World Food Program said the crisis is a silent tsunami that is "threatening to plunge more than 100 million people on every continent into hunger."

The World Food Program says it has never seen a crisis of this proportion. Analysts expect it will be difficult to reverse in the short term. The Financial Times says humanitarian aid at levels comparable to Indonesia's 2004 tsunami response will be needed to prevent the starvation of millions.

For Mercy Corps the increase in food prices is hurting the very people our program staff around the world are working to support.

Reports from those working most closely with affected communities confirm that the situation is dire — and has the potential to grow much worse.

Penny Anderson, Mercy Corps' food security program officer, told OPB radio: "I've been working with Mercy Corps for over eight years now and I have never seen anything like it."

In Niger, prices of bread, powdered milk and wheat flour have spiked, exacerbating the West African nation's precarious food situation. Currently about two-thirds of the population is at serious risk, with shortages pushing the country closer to famine.

In Syria, spiraling food prices have forced Mercy Corps to cut back on the amount of food we can buy and distribute to hundreds of Iraqi refugee families.

In Tajikistan, where Mercy Corps recently distributed blankets and generators to help residents keep warm during an unusually harsh winter, about 40 percent of households in the Rasht Valley are down to no more than one warm meal a day. Neighboring Kazakhstan has suspended wheat exports — shutting off Tajikistan's primary supply of the grain.

Like several other humanitarian aid agencies, Mercy Corps has established a Global Food Crisis fund to help its field teams respond to needs arising from the worst global food crisis in recent memory.

This short segment from Reuters discusses the impact of rising food prices on standards of living around the world. This is a terrific snapshot overview of the dynamics at play in the current world food crisis.

Photo: Karl Grobl for NetAid

Rising global food prices pose a very real threat to political stability and individual well-being in many developing countries. Recent unrest in Haiti and Egypt indicate an increasingly widespread trend — in fact, the World Bank has identified 33 countries at risk of public disorder.

But what should be done? The Times of London argues that investing in agricultural infrastructure and allowing producers free access to world markets — by both developed as well as developing countries — is the only real solution.

U.N. and World Bank officials say "the perfect storm" of factors has led to skyrocketing food prices, leading to riots in places in Haiti.

Haitians took to the streets this week, with The Times Online reporting that protesters compared their hunger pangs to the burn of battery acid. U.N. Peacekeepers used rubber bullets in attempt to control the situation.

The riots in Haiti are not the first uprisings over food prices, which have risen 65 percent in the last six years. There have been riots in Burkina Faso, Cameroon, Egypt, Indonesia, Ivory Coast, Mauritania, Mozambique, and Senegal. A survey by the Washington-based International Food Policy Research Institute says staple foods have risen by 80 percent since 2005. The price of rice is at its highest in the last 19 years and wheat is at a 28-year high.

“There is a risk that this unrest will spread in countries where 50 to 60 percent of income goes to food,” FAO Director-General Jacques Diouf told The Times Online. “This is due to higher demand from countries like India and China, where GDP grows at 8-10 percent and the increase in income is going to food.”

It's hard not to notice that gas prices seem to rise by the day. Most drivers may cringe a little more every time they fill up, but they aren't rioting in the streets. This isn't the story in some developing countries, where increasing oil prices — on top of soaring food prices — have increased the potential for widespread hunger.

To cope, the UN World Food Programme has launched an emergency appeal for $500 million. The WFP is the world’s largest humanitarian agency, working in 78 of the world’s poorest countries to help stop hunger. Funded entirely by individual donors and governments, the appeal was written to 60 governments in hopes to reach their goal by May 1. If this amount isn’t reached, the WFP will be forced to cut aid to countries in already desperate situations.

Although the WFP has launched many appeals in the past, this is the first time an appeal has been launched due to a market-generated crisis. The WFP says it was not prepared for the rise in staple food prices such as wheat and corn, as well as fuel.

NPR pointed out this morning that the food-price hikes are exacerbated by a shortage of rice due to bad harvests and growing demand. Rice-exporting countries in Asia are shipping less abroad to have enough of the dietary staple at home.

Photo: Karl Grobl for NetAid

Photo: Jason Sangster for Mercy Corps

The UN head of food and agriculture, Jacques Diouf, is urging oil-producing countries to reinvest oil revenues into local agricultural programs out of concern for rising food prices. The oil-rich countries termed by the UN the Near East (which includes most North African and Middle Eastern countries) has seen steady declines in agriculture productivity during the last two decades, and external food aid has dropped significantly as well. However, according to the FAO, the number of undernourished people in the region has grown from 33 million in the early 1990s to over 100 million by 2004.

With plans to feed as many as 73 million people this year, the UN World Food Program is alarmed by recent price increases, according to the New York Times editorial, "Priced Out of the Market". Increasing food prices in themselves are not extraordinary, but the fact that grain and wheat producers, among others, are shifting their effort away from food to alternative energy production will dangerously complicate the situation - higher prices combined with a global food shortage will prove deadly.

The FAO's Hunger Map shows that most of the countries with the most dire need for food aid are not high producers themselves. While Near Eastern countries are still able to find enough food resources to feed their people right now, the Financial Times quotes Mr. Diouf's warning that “it is a difficult balance for governments to respond to the need of their populations by importing food at very high prices, and also to ensure that the poorest of their populations get access to food at reasonable prices.”

Photo: Thatcher Cook for Mercy Corps

Rising rice prices have created new problems for those countries, mostly in Asia, which depend on a large, inexpensive supply of the food, according to the Financial Times. This week, prices hit a 20-year high, "prompting importing countries to seek assurances on supplies."

Analysts have attributed the surge in rice prices to bad weather that has hit supply; urbanisation that has cut the acreage given over to cultivating the grain; and strong demand on the back of rapid income growth in China, India and other Asian countries...Asia has not known famines since the 1970s, and recent price rises for rice and other basic foodstuffs have sparked unrest.

Food distribution line. Photo: L. Boscardi/UNHCR

The UN is preparing plans to ration its food aid to people in need if new donations don't provide more money soon, according to an article in the Financial Times this week. Rising global food prices are putting serious pressures on the World Food Program (WFP)'s budget, to the tune of several million dollars each week.

"The WFP crisis talks come as the body sees the emergence of a "new area of hunger" in developing countries where even middle-class, urban people are being "priced out of the food market" because of rising food prices.

The warning suggests that the price jump in agricultural commodities - such as wheat, corn, rice and soyabeans - is having a wider impact than thought, hitting countries that have previously largely escaped hunger."

It is not just the UN that will have to ration its food aid. Countries like Egypt and Pakistan are reinstating or strengthening rationing systems for the first time in decades. Unfortunately, the crisis will be getting worse in the short term. According to the US Department of Agriculture "high agricultural commodities prices [will] continue for at least the next two to three years."

Photo: dziner (flickr)

Like all policy choices, the decision of many developed nations to pursue greater conversion to ethanol and biodiesel has consequences. But who will pay the costs associated with the shift from oil to biofuels? According to the World Politics Review, it is the world’s poor who are going to suffer the most from the negative effects of the biofuel craze.

With current technology, almost all of the biofuel produced today has to be made from corn or soybeans. Though other sources may be able to be used in the future, the use of crops for fuel rather than food has already taken a huge toll on the world’s commodity markets. The UN Food and Agriculture Organization estimates that global food prices have increased by almost 40 percent in the last year, after a 14 percent increase in 2006. Many countries have introduced price controls on staple foods, and food shortages have caused protests in Pakistan and Indonesia.

Higher food prices aren’t all bad, according to the Council on Foreign Relations. Rather, continued increases in the price of foods, especially basic staples like corn and wheat, could provide the pressure needed to break the international deadlock on agricultural policy. In an effort to prevent food shortages, many countries have already begun to reduce agricultural import tariffs as a means of increasing production.

Countries scrambling to fill grocery shelves may be willing to bend where they haven’t previously. If major exporters start exporting less, this in turn could make farm industries in developed countries like the United States feel less threatened by imports… Peter Mandelson, the EU trade minister, notes a shift already afoot: “There’s much less of a need for protectionism than when we started [the Doha Round of global trade talks] in 2001.”

Biofuel production. Photo: Benjamin Weller (flickr)

Jacques Diouf made a compelling argument last fall. The chief of the Food and Agriculture Organization of the UN stated that it is absolutely the responsibility of wealthy countries to ensure that a significant part of the emerging biofuel market is produced by the developing world. Right now, the U.S., European Union and Brazil are the leading producers and consumers of biofuels. If this situation remains into the future Diouf says,

“It will mean that we had a chance to honour all our solemn pledges to banish hunger and poverty but chose to look the other way.

If we get it right, bioenergy provides us with a historic chance to fast-forward growth in many of the world’s poorest countries, to bring about an agricultural renaissance and to supply modern energy to a third of the world’s population.

To focus debate exclusively on bio¬fuels for transport is therefore to miss much of the point about bioenergy’s potential for poverty reduction. This lies more in helping 2bn people to produce their own electricity and other energy needs than in keeping 800m cars and trucks on the road.”

Mr. Diouf has called for a world summit on food security, to be held in Rome in June this year. We will be watching for what decisions come out of this meeting, which will be discussing the challenges faced by the food and agricultural sectors from climate change and bioenergy. An interview with the agriculture head on the subject of food security and rising food prices can be viewed here.

Rapidly rising prices for palm oil and other kinds of vegetable oils are having a huge impact in the developing world, where many families grow their own food but must purchase oil in which to cook it. As the International Herald Tribune reports, this increase in the cost of edible oils is only the most recent development in the emerging global problem of rising food prices.