31 August 2010
Food inflation is back in the headlines and, as usual, the source is water.
In 2007, the Australian wheat and rice crop was almost wiped out by drought, coinciding with low rainfall across Canada and Europe. Global wheat prices doubled and Sam’s Club in the USA began to ration rice.
In 2010, Russia is set to lose a quarter of its wheat yield to drought. The floods in Pakistan will cause t...