World Heading For A New Food Crisis As Russian Wheat Crop Falters
August 4, 2010 • 9:16AM

The danger of a major food crisis developing, underscores the need for NAWAPA projects not only in the U.S., but in Eurasia and Africa as well. This is reflected in a 50% increase in wheat prices over the last month, reportedly due to severe drought conditions in Russia, Ukraine, and Kazakhstan. The European wheat price jumped 8% in one day, to EU211 a ton, the biggest one-day jump in three decades. It is feared that the price could reach the proportions of the 2007-08 food crisis, when wheat prices reached EU300 a ton. There are warnings that prices for barley could also surge. Prices have not increased this fast since the collapse of the Soviet harvest in 1972-73, due then to drought conditions. It is feared that Russia's wheat production could collapse to 45-50 million tons, which would be a 27% drop from last year's 61.7 million tons. Russia now produces 15% of the world's wheat and is a major wheat exporter.

While U.S production is expected to be good, Canada's harvest is forecast to drop by 36% because of heavy rains.