Taking it to the streets. Stockhouse.com: Taking it to the street
 
Latest Video
CEO Interview and Company Overview
Noble Mineral Exploration | V.NOB
5/11/2012
 
Other Recent Video
Sundance Energy Corporation  | V.SNY
8/4/2011
Ridgeline Energy  | V.RLE
9/16/2011
LI3 Energy Inc | LIEG
9/26/2011
Next Gen Metals | V.N
10/28/2011
Canadian Platinum Corporation | V.CPC
11/22/2011
Majescor Resources Inc. | V.MJX
1/6/2012
Inca One Resources | V.IO
1/25/2012
Solid Resources Ltd. | V.SRW
2/7/2012
Troymet Exploration Corp. | V.TYE
2/28/2012
Golden Fame Resources | V.GFA
3/14/2012
Chemaphor Inc. | V.CFR
3/30/2012
Feronia Inc. | V.FRN
4/4/2012
Prosperity Goldfields Corp | V.PPG
4/25/2012
Fire River Gold Corp | V.FAU
4/25/2012

Timing of violent protests in North Africa and the Middle East in 2011, and earlier riots in 2008, coincides with large peaks in global food prices.

In 1798 32 year-old British economist Malthus anonymously published “An Essay on the Principle of Population” and in it he argued that human population’s increase geometrically (1, 2, 4, 16 etc.) while their food supply can only increase arithmetically (1, 2, 3, 4 etc.).

"The power of population is indefinitely greater than the power in the earth to produce subsistence for man". Thomas Robert Malthus

It is estimated that the population of the world reached:

  • One billion in 1804
  • Two billion in 1927
  • Three billion in 1960
  • Four billion in 1974
  • Five billion in 1987
  • Six billion in 1999

The second half of the 20th century saw the biggest increase in the world’s population in human history. Our population surged because:

  • Medical advances lessened the mortality rate in many countries 
  • Massive increases in agricultural productivity because of the “Green Revolution”

The global death rate has dropped almost continuously since the start of the industrial revolution - personal hygiene, improved methods of sanitation and the development of antibiotics have all played a major role.

The world's population was said to have reached 7 billion on October 31, 2011 and is estimated to hit the eight billion mark by 2030.

By 2050, the world's population is expected to reach around nine billion - minimum and maximum projections range from 7.4 billion to 10.6 billion.

By the mid 2060s it’s possible that 11.4 billion people will inhabit this planet.

Malthusian pessimism has long been criticized by doubters believing technological advancements in agriculture , energy, water use , manufacturing , disease control , fertilizers , information management , transportation food1would keep crop production ahead of the population growth curve.

Malthus’s prediction hasn’t come true because, so far, rising agricultural yields have always outpaced population growth.

Enter the Black Swans

The Black Swan Theory or "Theory of Black Swan Events" was developed by Nassim Nicholas Taleb to explain: 1) the disproportionate role of high-impact, hard to predict, and rare events that are beyond the realm of normal expectations in history, science, finance and technology, 2) the non-computability of the probability of the consequential rare events using scientific methods (owing to their very nature of small probabilities) and 3) the psychological biases that make people individually and collectively blind to uncertainty and unaware of the massive role of the rare event in historical affairs. Black Swan Theory refers to unexpected events of large magnitude and consequence and their dominant role in history. Such events, considered extreme outliers, collectively play vastly larger roles than regular occurrences. Wikipedia

Threats to access and distribution of food supplies could include:

  • Political instability of supplier countries
  • The manipulation of supplies
  • The competition over supplies
  • Attacks on supply infrastructure
  • Accidents and natural disasters
  • Climate change

The term Green Revolution refers to a series of research, development, and technology transfers that happened between the 1940s and the late 1970s.

The initiatives involved:

  • Development of high yielding varieties of cereal grains
  • Expansion of irrigation infrastructure
  • Modernization of management techniques
  • Mechanization
  • Distribution of hybridized seeds, synthetic fertilizers, and pesticides to farmers

All these new technologies increased global agriculture production with the full effects starting to be felt in the 1960s. The Green Revolution's use of hybrid seeds, irrigation, chemical fertilizers, pesticides, fossil fuels, farm machinery, and high-tech growing and processing systems combined to greatly increase agriculture yields. The Green Revolution is responsible for feeding billions - and likely enabling the birth of billions more people.

Cereal production more than doubled in developing nations - yields of rice, maize, and wheat increased steadily. Between 1950 and 1984 world grain production increased by over 250% - and the world added a couple more billion people to the dinner table.

Unfortunately the high yield growth is tapering off and in some cases declining. This is in large part because of an increase in the price of fertilizers, other chemicals and fossil fuels, but also because the overuse of chemicals has exhausted the soil and irrigation has depleted water aquifers.

“World agricultural markets have become so finely balanced between supply and demand that local disruptions can have a major impact on the global prices of the affected commodities and then reverberate throughout the entire food chain.” HSBC report

Over the next fifty years, as we add another 4.5 billion people to the world’s population, global demand for food will increase almost 70% if population growth predictions are correct.

Already approximately one billion people go to bed hungry each night. 

Somewhere in the world someone starves to death every 3.6 seconds - most are children under the age of five.

"The power of population is so superior to the power of the earth to produce subsistence for man, that premature death must in some shape or other visit the human race." Malthus T.R. 1798. An essay on the principle of population.

There has been almost no real increase in funding of the international agricultural science effort since the 1970s. This global decline in agricultural R&D means less new technology will be available to farmers. What is available are Genetically Modified Organisms (GMOs) - heavily bio-engineered seeds - which rely on the same industrial credits – fertilizers, pesticides, diesel and irrigation -  that the first Green Revolution did.

Conclusion

“Social unrest may reflect a variety of factors such as poverty, unemployment, and social injustice. Despite the many possible contributing factors, the timing of violent protests in North Africa and the Middle East in 2011 as well as earlier riots in 2008 coincides with large peaks in global food prices.” M. Lagi, K.Z. Bertrand and Y. Bar-Yam, "The Food Crises and Political Instability in North Africa and the Middle East" New England Complex Systems Institute

food2 

New England Complex Systems Institute

Population growth and increasing demand for food supplies go hand in hand. Unfortunately yield increases have generally leveled off and supply is barely keeping up with demand. The fact is, that today, we’re one poor harvest, one Black Swan event away from a food supply catastrophe and a repeat of the food shortages that caused the Arab Spring. These facts should be on everyone’s radar screen. Are they on yours?

If not, maybe they should be.

 
ABOUT THE AUTHOR
Richard (Rick) Mills

Richard is host of aheadoftheherd.com and invests in the junior resource sector. His articles have been published on over 200 websites, including: Wall Street Journal, SafeHaven, Market Oracle, USAToday, National Post, Stockhouse, Casey Research, 24hgold, Vancouver Sun, SilverBearCafe, 321Gold, Kitco, Gold-Eagle, The Gold/Energy Reports, Calgary Herald and Financial Sense.

Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Richard Mills has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Richard Mills only and are subject to change without notice. Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Richard Mills, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.


Ahead of the Herd.com Media Group Inc., a division of Ahead of the Herd Holdings Inc. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Ahead of the Herd.com does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. The publisher, editors and consultants of Ahead of the Herd.com may actively trade in the investments discussed in this website and newsletter. They may have substantial positions in the securities recommended and may increase or decrease such positions without notice. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this website and publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law.
 

 
print
 
 
Stockhouse Conflict and Disclosure Policy:

Stockhouse publishing Ltd., owners and operators of Stockhouse.com, has established the following rules to ensure that there is no appearance of impropriety on the part of any Stockhouse Editorial writers ("Writers"). The content of Stockhouse Editorial articles (the "Articles") are the opinion of the Writer and any reliance on the content of these articles is at your sole risk. Our Writers are not registered investment advisors. You should not make any kind of investment decision in relation to Articles or stocks discussed in them without obtaining advice from a registered investment advisor.

Facts relied upon by our Writers are generally provided by the subject companies or gathered by our Writers from other public and/or private sources. These facts may be in error and if so, the opinions of our Writers may be materially different.

Writers may own, buy, or sell shares in public companies mentioned in their Articles, but in the Article they must prominently state their ownership position. Thus, a conflict may exist. Writers are not permitted to write Articles that attempt to benefit persons connected to the Writer, such as family or friends, except where disclosure is made in the same way as if the Writer him/herself owns stock.

Writers cannot solicit, accept, or agree to receive anything of value given or paid with the intent of influencing their Articles.

Stockhouse notifies each Writer about these rules, and we rely on the integrity of our Writers to ensure that our rules are followed.

 
SPONSORED NEWS LINKS
 

 
 
 
Today's Feature  
 
Pacific North West Capital Corp.

Pacific North West Capital Corp. (TSX: PFN; OTCQX: PAWEF; Frankfurt: P7J) is a mineral exploration company focused on the exploration and development of one of Canada's largest primary Platinum Group Metals (PGM) deposits, the River Valley PGM Project located in the Sudbury region of Ontario. The Company is also advancing the Rock & Roll Poly Metallic Project in the Iskut River region of British Columbia. Pacific North West Capital Corp...