Global Business Perspectives

Recent reports have shown that many Agriculture Farmers have shown record profits in the last quarter – some jumping over 40%.  The companies that support the Agricultural industry are booming too! 

There are three things that I find most concerning about this trend:

1.  Food Shortages – I recently wrote about the riots and hunger that is happening around the world.  I can’t imagine having to fight people for my food and paying my entire month’s salary for just the basic necessities of rice, grain and soybeans. 

2.  Prices on the Rise – and there is no end in sight.  With the higher demand for food and biofuels – the prices keep going up.  The energy issues are also attributing to these high prices due to shipping costs. 

3.  Public Relations – the organizations that are benefiting from the higher demand are trying to avoid a backlash by saying they are reinvesting their “profits” into better technologies to increase farmer efficiencies. 

With stores like Costco having a run on rice – this is a bit scary.  I don’t think I have a reason to dash out and get these products but the idea of this kind of pandemonium is scary.  I only know about these things from the news and from our history books.  What is the breaking point?