Increased Demand For More Resource Intensive Food Economics Essay

Increased Demand For More Resource Intensive Food Economics EssayThe increasingly of enhanced productivity and yields of the farm sector necessitate been driving the worldwide nourishment impairments f each(prenominal)ing for the foreg peerless 25 years. However, this phenomenon came to a sudden change due to the global viands prices cast upd dramatically by 2007, creating a global crisis and causing political and economical instability and social unrest in both(prenominal) poor and true nations.Increased lease for more resource intensive foodThe head of the internationalistic Food Policy Research Institute stated in 2008 that the gradual change in fodder among newly prosperous populations is the to the lavishly ge arest degree important factor underpinning the rise in global food prices(Wikipedia, 2010), most nonably in developing country like China and India. Rising of consumption of meat curiously has resulted in accession demand for grains adept kilogram of beef requires eight kilograms of feed grain, so as the demand for meat surges, consumption of grains by cattle soars, that driving up grain prices.Issue of bio-fuel subsidies both(prenominal) the linked States and European Union have practiceed policies by giving the subsidies for ethyl alcohol and bio-diesel employment to numerous farmers which have prompted them to switch to return for bio-fuel, even though exactly how nitty-grittyive they are at generating less(prenominal) CO2 emissions and decelerating global warming is actively debated. Ultimately this has diverted the land away from proceeds of gamboge and soy for food, and reduced the supply of land devoted to maturation crops that dont received bio-fuel subsidies, such(prenominal) as wheat. As a result, it showd a huge effect on demand for clavus and soy beans. In 2007, for example, the U.S. increase in demand for corn-based grain alcohol accounted for more than half of the worldwide increase in demand for corn.The paradox of imposition of high tariffsFrom the U.S. and EU markets by high tariffs, which are shutting out manufacturers of alternative products that domiciliate be turned into bio-fuels, most remarkably earnings cane, So as a result, the price of import sugar cane is increased and making it extremely uncompetitive with subsidize corn and soy beans, this is fateful as sugar cane is a more environmentally friendly raw material for bio-fuels than corn and soy beans. As matter of fact, the circumstances may get even poorer, in case indemnity makers have their way. Policies in both U.S. and the EU require increase in the toil of bio-fuels, but none of them has permitted decreasing tariff barriers on sugar cane or to remove the trade distorting subsides given to those who generate corn and soy for bio-fuels.2) Case parole Questions 1 AnswerWho benefits from government activity policies to (a) promote production of ethanol and (b) place tariff barriers on imports of sugar cane? W ho suffers as a result of these policies?The policies who benefit from the government policies to promote production of ethanol pass on be the country and its domestic producers. For this case, it will be United States and the domestics producers in United States. likewise, it will provide the producers with the chance to expand or increase their export market. For example, genus Sagittarius Daniels Midland Company is one of the United States domestic company which turn crops into renewable products. At the selfsame(prenominal) time, the tariff barriers on imports of sugar cane would minimize the foreign imports. Most of people believe that the ethanol production provides large benefits to the farmers, but in fact the profits to farmer are minimal. However, most of the domestics producers (like bowman Daniels Midland) are making huge profits from ethanol production which were received the ethanol subsidies. (EV World, 2002)Refer to the given over table from the United States E nergy Information AdministrationTable 1In the recent year, the production of ethanol in United States is fully consumption by them and the continuous declined the import of ethanol. This is well apparently the domestics consumption and no import market for the ethanol.In additional, sugar cane, corn and soybeans are mainly utilise for production of biofuel. Most of the developed countries (e.g. China and India) are usually provided the subsidies, it will make the production of corn, sugar cane increasing faster and the farmers will plant more. These will be also beneficial to the developed countries. The land owners will give the benefit as well as the more ethanol production conv marrowd more arable land for crops.On the other hand, the consumers will suffer by nonrecreational more for the corn, sugar cane, etc. as the demand for ethanol is increased. In addition, the drivers in United States will suffer a lack of competition as the ethanol prices are higher(prenominal). Also, the energy and pollution make to be balance of the whole cycle of ethanol production.3) Case Discussion Questions 2 AnswerOne estimate suggests that if food prices rise by one-third, they will reduce living standards in abstruse countries by about 3%, but in very poor ones by about 20%. consort to the international food policy explore institute, unless policies change, cereal prices will rise by 10% to 20% by 2015, and the expansion of bio-fuel production could reduce calorie intake by 2% To 8% by 2020 in many of the worlds poorest nations. Should rich countries do anything about this potential task? If so, whatYes we do, from the perspective of ethics the rich nations should provide help oneselfs hence these nations is already very well developed and they have more resources or additional resources to reallocate to the poor nations by providing helps to save life.Double approachTo tackle the current situation of high food prices by providing emergency assistance to the poor est countries is needed. By revitalizing agrarian communities and re-launching agriculture are the cay elements to reduce hunger and ensure an improved world food situation.Protecting the people who suffers hunger in rural and urban areas would require direct food dissemination, food subsidies, cash donation and nutritional programs, such as school feeding. Enhance social protection is also very important for vulnerable groups, including big(predicate) women, elderly and the children.For short-term action, local food production should be the first prioritize. Subsides program should include the distribution to local farmers of fertilizers, seeds, animal feed or other input. Support should focus on rude research serving the needs of poor farmers, many of whom farm in increasingly marginal areas poor farmers should have better access to factors of production, namely land, water and inputs. If this program worked effectively, such program would enhance the supply answer in poor c ountries and improve food availability, during the increase of the income with small producers and it might also reduce price increases in local markets as well.For mid and long term actions, high food prices also face an opportunity for increase investments in agriculture by both the private and common sectors to stimulate production and enhance productivity. Invite private firm for investment into long neglected areas such as agricultural research, extension for infrastructure, on the other hand production and trade policies on bio fuels may also need to be re-examined for their possible effects on food markets and food security, especially in those vulnerable countries.If all the short and long terms projects which works effectively, the food prices should decline dramatically because the supply of food increase and it could save millions of peoples who dont have to suffers of hungers and diseases, It may stop the wars between the poor countries which competes again for access to resources.4) Case Discussion Questions 3 AnswerThe argument for giving subsides to ethanol producer rests upon the assumption that ethanol results in abase CO2 emission than gasoline and therefore benefits the environment. If we accept that global warming is a serious problem in itself, should we not be encouraging government to increase such subsides? What are the arguments for and against doing so? On balance, what do you think is the best policy?Biofuel as E85 is an ethanol fuel that typically contains a desegregate of up to 85% ethanol and 15% gasoline. E85 is comm but used in the United States and Europe.Ethanol is one of the best tools to address environmental give aways such as reduction in greenhouse effect and ware pipe emissions. Because ethanol is made from renewable, plant-based feedstock such as corn or sugar cane. The CO2 released during a vehicle in motion is recycled during the egression of ethanol feedstock.In 2007, U.S. governments have given subsidies to farmers caused that corn production increased to 85 million tons from around 15 million tons in 2000. Also subsidies amount to between $0.29 and $0.36 per liter of ethanol. In Europe the subsidies are as more as $1 a liter.The greenhouse effect is an essential environmental prerequisite for life on Earth. The problem is kind activities destroy and accelerate the process by creating more greenhouse gases which include nose candy dioxide, emitted by fogy fuel combustion and deforestation etc Global warming is produced mainly by the growth of greenhouse effect and emission of carbon dioxide.The Earths average surface temperature rose by 0.740.18 C over the period 1906-2005. The carbon dioxide emission is estimated some 80 % rise in the economic growth of China. In the meantime the US and EU managed to reduce emissions slightly. It seems that global warming is a serious problem.The initial purpose of the subsidy was to help a nascent biofuels industry, hope to reduce Americas crude oil dependence. However, the ethanol is an effective way to break our petroleum addiction but not be the best of tools to improve the environmental and economic. In case we calm down encouraging government to increase the subsidies in the ethanol. It can be improved cellulosic technologies for energy efficient, reduce cartel on petroleum or displacement if possible. on the other hand, it may be developed an agriculturally-based rural energy workforce and help domestic producers to earn more revenue and advance economic growth because as the government policy to compete against clinical depression-cost foreign imports, gain export markets and improve the environmental better.In turn, Eliminating or not increasing ethanol subsidies will lower your grocery bill, saving $30 billion in wasteful spending and increasing edible maize by 14%. Because subsidies caused high demand for corn and soy beans turn into ethanol, then reduce the supply of land devoted to growing crops, that its exi stence increases the price of corn, and that food prices rising.On balance, I think the best policy is ethanol has helped in the development of the biofuel infrastructure. The subsidies still carry on but should be set up expiry dates and pay back budget, also able to increase subsidies directed towards a broader range of approaches. From the technological and economic benefits, ethanol production still has little potential upside left in process cost reduction. Some subsidies should be used to introduce new competition to markets or support other new technologies to get higher revenue.5) Application to Hong Kong Business Environment presidencys policy is a critical factor. US and EU government implement Bio-Fuel Subsides and high tariff for sugar cane which is part of reason to rise global food price. at that place are many similar cases in Hong Kong. MTR potbelly Ltd is a typical example. The MTR Corporation was established in 1975 as the Mass Transit Railway Corporation and the Hong Kong politics was the only sole shareholder. Although the Hong Kong Government sell 23% of its issued share capital to private investors in an Initial Public Offering in 2000, Hong Kong Government is still a main shareholder. Since 90s, Hong Kong Government has adopted a carry-over policy Railway as a backbone on the public policy. There are now 10 lines, but the Corporation is still developing and expanding its network. Within the next decade, the Corporation will complete five new strategical rail extensions. They include West Island hound, Guangzhou Shenzhen Hong Kong Express Rail Link, Shatin to Central Link, Kwun Tong Line Extension and South Island Line (East).The Hong Kong Government supports the MTR Corporation Ltd non-stop network expansion. On the other hand, the Government adopts a tight control to others transportation with direct competition with MTR Corporation Ltd. For Example, franchised public bus KMB, who has been constrained the No. of vehicles, Bus r outing expansion / contraction and so on.Application to Hong Kong ResidentSupply and Demand is an important issue. Due to the population growth the demand of meet, so the demand of food relatively increase which cause the global food price rise.Hong Kong residents are also affected by the issue of supply and demand of property. The price of property has been dramatically kaput(p) up from 40 to 115 since 2002 up to 2012 according to Centa-City Leading Index. In past, the ex- Chief Executive Donald Tsang did not have any policy to increase the supply of property. This result the supply of property maintains on the low level. However, the population of nubile age is increasing and they have a huge of demand on the property.Government is the main supply of property as it provides lands to property developer before property baseing and it directly build subsidized houses. However, in the past ten years, the supply of property is relatively low. The stop building of subsidized houses a nd slow land sold by Land Sale by Application, the supply of property is only around 10 thousand per last few years, but the demand of property is around 25 thousand as the No. of the marriages is over 50 thousand in the recent years. It causes a neat difference between supply and demand. There is not enough supply to fulfil all demand.6) expirationThe global food price increase is one of the signs of the global food crisis. Global food crisis is a profound problem to all the human being. 22 countries have already suffered from this issue and more than 900 million people suffer from not having enough to eat every day according to FAO 2010.Global food crisis is more serious than war and environmental crisis as it would create a lot of social issue and affect social stability. Therefore it is time to take precautions before it is too late, we start General public can as well reduce the food waste.In addition, the case study of global food price increase also shows the importance of governments policy. Government policy affects the business environment the industrys recession or boom. Government policy affects the living standard of general public. To take necessary precautions, Hong Kong resident should keep an eye on government daily operation.