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Who is the gainer of the high food prices??
Aug 10, 2007 01:30
  • YVONNE
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At present, the soaring food price has become a big concern for Chinese people. The prices of the pork, eggs and other poultry products are all on the rise. Low-income residents in the cities and the farmers in the rural areas are the main victims.

Some people may ask why the farmers are the victims? They should be happy with the soaring prices because they can earn more. Actually not. The price of animal feedstuff is also rising. Meanwhile, due to the high price, less customers choose to buy porks and other poultry products.

If the farmers are not the gainers, who are the gainers?
Aug 10, 2007 16:35
#1  
  • GRIZ326
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In the US I believe it would be the agri-giants that have nearly monopolized a vertical market and the middle men brokers. ...but I do not know who will gain the most in China.
Aug 20, 2007 22:40
#2  
  • ZOEY
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According to the news, the price of the pork dropped a little. But the prices of vegetables and other agricultural products still keep hiking.

If the farmers are not the gainers, who are the gainers? Maybe there is no gainer. All people are the victims.
Apr 14, 2008 00:44
#3  
  • MUDDIEDKNEES
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I have to agree with GRIZ, the big agro-industrial companies will benefit a lot, except that I'm not sure whether only US companies will benefit. I believe the bulk of money consumers end up paying for food products end up in the hands of these companies. They control many of the materials that go into agricultural production, including fertilizers, pesticides, animal feed, and seeds. They also buy and process agricultural products into the basic food factory ingredients like flour, whey (from milk), egg powder, starch, etc.

Small farmers will benefit, but their gains will be minimal. Unless farmers in China have direct access to the market, I think middle men and retaillers will benefit more.
Apr 14, 2008 11:47
#4  
  • MARRIE
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vegetable farmers do gain. If you ever visit farmers houses by the sea in YangZi Triangle area, you just cannot imagine how lux they are!
Apr 14, 2008 20:03
#5  
  • MUDDIEDKNEES
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<vegetable farmers do gain. If you ever visit farmers houses by the sea in YangZi Triangle area, you just cannot imagine how lux they are!>

Maybe very true. I've seen a lot of 3-story rural houses. Does anyone know whether Chinese farmers have access to market, capital, and processing facilities (mills, etc.)? Farmers in many developing countries typically do not have access to these. As a result, they benefit much less from increases in food prices.
Apr 15, 2008 01:28
#6  
  • LEON8ME
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Increases in food prices are a direct result of increases in fuel prices. The increase in petroleum price is the fundamental stress factor of every economy in the world. Multinational oil corporations are reaping obscene profits. No one benefits from higher food prices. Everybody suffers from dependence on petroleum fuel. Maybe Guangxi has good idea, growing cassava to distill into biofuel.
Apr 16, 2008 21:00
#7  
  • JIMMYB
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"Maybe very true. I've seen a lot of 3-story rural houses. Does anyone know whether Chinese farmers have access to market, capital, and processing facilities (mills, etc.)? Farmers in many developing countries typically do not have access to these. As a result, they benefit much less from increases in food prices."

Agree, MUDDIEDKNEES! Because of lacking knowledge, they seldom have access to market to sell their products. Many farmers in the rural areas just till the land to support themselves. Thus, they don't make money. Being poor, they also suffer from the surging food prices.
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