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More on the price of grain

Posted January 31, 2008

I have been reading further on the subject of the soaring prices of feed which supplement the diet of some iberico pigs. According to a Christin Science Monitor article, expanded use of biofuel is only one of many factors. 

Actually in the USA the cost of the actual plant product is only 19% of the total cost of food, so that although the soaring cost of corn is one factor, the greater cause is the growth in the number of people across the globe who have enough money to be more discriminating in what they consume.

Putting it simply, in the recent past in China and India, for example, subsistence was about the best most could hope for. Now with growing prosperity there is a significant demand for higher quality food. Therefor, with a limited amount of quality food available, the price goes up -- simple supply and demand.