Analysts at Rabobank, a Netherlands-based bank specialising in food and agri-business financing, were crunching the numbers and predicted at the time that food prices, specifically meat prices, would soar in 2013 as a result of the U.S. drought.
Back in 2011, the New England Complex Systems Institute (NECSI), a research body of academics from Harvard and MIT, using data from the UN Food and Agriculture Organization's (FAO) Food Price Index, published a paper that correlated "outbreaks of unrest" in 2008 and 2011 with increases in food prices. They claimed to have identified the precise threshold for global food prices that leads to worldwide unrest: 210 points...
"high global food prices are a precipitating condition for social unrest. More specifically, food riots occur above a threshold of the FAO price index of 210."
"When people are unable to feed themselves and their families, widespread social disruption occurs. We are on the verge of another crisis, the third in five years, and likely to be the worst yet, capable of causing new food riots and turmoil on a par with the Arab Spring."The aggregated FAO Food Price Index averaged 211.3 points in June this year, but more telling indicators might be their June 2013 Cereal Price Index, which averaged 236.5 points, and their Sugar Price Index, which averaged 242.6 points. Dairy prices are also riding above this 210 threshold, so when we consider that most people's diets are substantially based on sugar, cereals and dairy, followed by meats from cattle raised on grains, it seems pretty clear that we're very much in the danger zone.
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