U.S. Relations With the People's Republic of China (2008)

The White House

For Immediate Release
Office of the Press Secretary
May 1, 2008

Press Briefing on Food Aid by OMB Deputy Director Steve McMillin, CEA Chairman Ed Lazear, and Deputy National Security Adviser for International Economic Affairs Dan Price

Via Conference Call

4:03 P.M. EDT

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CHAIRMAN LAZEAR: Good afternoon, thanks. Just wanted to give you a little bit of background on some of the numbers, to put things in the context of where we are and what are some of the causes of food price increases. Global food prices are up 43 percent since last year. Some commodities have seen very sharp increases. Wheat, for example, is up 146 percent; corn, 41 percent; and rice, about 29 percent.

There are a number of drivers of food price increases. Increasing demand in emerging markets accounts for about 18 percent of the rise. Also, increasing energy costs, which add to the cost of producing food, is another component. Very important this year were adverse weather-related events in Australia, China and many Eastern European countries that produced low crop yields, and that also implied very sharp increases in food prices.

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END

4:35 P.M. EDT