Wirrarika-(5) Ethanol's effect: Expensive tortillas
Ethanol's effect: Expensive tortillas
Associated Press
Published January 13, 2007
MEXICO CITY -- Soaring international demand for corn has caused a spike in prices for Mexico's humble tortilla, hitting the poor and forcing President Felipe Calderon's business-friendly government into an uncomfortable confrontation with powerful monopolies.
Tortilla prices have jumped nearly 14 percent over the past year, a move the head of Mexico's central bank called "unjustifiable" in a country where inflation ran about 4 percent.
Economists blame increased U.S. production of ethanol from corn as an alternative to oil. The battle over the tortilla, the most basic staple of the Mexican diet, especially among the poor, demonstrates how increasing economic integration is felt on the street level.
"This is direct evidence of the way globalization is affecting all walks of life in Mexico and all over the world," said David Barkin, an economics professor at the Autonomous Metropolitan University in Mexico City.
The federal government's antitrust watchdog announced this week it was investigating allegations companies were manipulating corn prices, and making deals to limit the supply of corn to boost prices of tortillas.
For low-income Mexicans, who earn about $18 a day on average, the increasing prices have hit hard. According to the government, about half of the country's 107 million citizens live in poverty.
"When there isn't enough money to buy meat, you do without," said Bonifacia Ysidro, but "you can't do without" tortillas.
The U.S. Agriculture Department said ethanol plants and foreign buyers are gobbling U.S. corn supplies, and the benchmark price of corn reached an exchange-imposed limit of $3.965 a bushel shortly after trading began Friday at the Chicago Board of Trade.
Nationwide in the U.S., supplies of corn are expected to drop to 752 million bushels this year, a drop from last month's forecast of 935 million bushels and a steep decline from last year's supply of 1.967 billion.
The increase in tortilla prices has outpaced inflation and minimum wage hikes of about 4 percent for the past year. Grains traders forecast tortilla prices will rise 20 percent to 25 percent during the first quarter of 2007.
That prospect worries Ysidro, who said, "If it goes higher, what am I going to give my children?"
Copyright © 2007, Chicago Tribune
Sierra Madre Huichol
Naranjito de Copal - Municipio del Nayar - Mexico
Travelling in Mexico
Comments and faves
lotusfee added this photo to her favorites. (62 months ago)
lotusfee (62 months ago | reply)
The boy has amazing eyes!! A wonderful capture!!
Nicola Okin Frioli (62 months ago | reply)
lotusfee: she is Brenda!
uvmonkey & sons and Anna Rigato added this photo to their favorites.
drmauro (62 months ago | reply)
grande foto come sempre...ciao nicola!
OmMane added this photo to their favorites. (62 months ago)
OmMane (62 months ago | reply)
Great mood.
diver227 (62 months ago | reply)
very nice!
sakura love (62 months ago | reply)
great mood
andrea francesco added this photo to his favorites. (62 months ago)
andrea francesco (62 months ago | reply)
seems a caravaggio painting! ultracool! :D
Haider Zaman : : Pk : : (62 months ago | reply)
Why is There always U. S. causing problem everywhere in this sweet World ?
There are other supper powers , like China , France , etc not disturbing the world.
Chiara Marra (61 months ago | reply)
davvero ottima questa tua ricerca d'effetti chiaro scurali e grande esempio di fotogiornalismo...ciao e buon lavoro :)
Chiara
yosita_82 added this photo to her favorites. (59 months ago)
Alicia Lim (59 months ago | reply)
Nice one Nico!
Haroon M (57 months ago | reply)
Great photo to cover a very important fact: The effect of mega corporations and globalisation are hitting the poorest in the poor countries. It is a vicious cycle that causes unjustified polarisation in distribution of wealth which in turn will further aggravate the predicament that the poor find themselves in: the inability to make ends meet. Which unfortunately in turn is the root cause of a host of other problems, e.g. crime, injustice....
perfectlymadebirds (57 months ago | reply)
I agree with you HaroonM. Globalization is only good for the few and not everyone as it is in the current time. I hope for a future where globalization benefits everyone and not just the few. Corporations right now seem to be the most powerful entities on Earth, more powerful than governments are. In earlier Earth history government was where the last word was. Now the corporate empires have the last word or perhaps laugh. Part the problem the way I see it, it seems that the leaders and many of the peoples of the countries actually victimized contribute to make corporations who seem to have disregard for cultures, environment and humanity a problem worse than what it already is. Many countries with or without realizing it contribute the power of corporations by prostituting themselves in the name of greed. Every nation in theory could have powerful economies, production and cultural influences and contributions to the greater world if they would just get up and say they believe they can be self reliant and accomplish any positive thing they want to but they have to want to do so. Such self motivation would put a crunch on 90% of the poverty that exists but that takes the first step by looking into the mirror and saying, what can I do to make a difference to make my nation a great nation, a powerful productive nation part of a global environment that has an equal say an equal voice. Like the UN, there should be a meeting place of the great minds and leaders of all nations that bring forth new ideas, new discoveries and new contribution that all have a say in world influences that is a globilization that everyone has a say in and benifits from. Equality is achieved through diversity not integration which creates dependence and lack of self confidence.
Nicola Okin Frioli (57 months ago | reply)
TNX, i also agree with you.. BEst
Loon Man added this photo to his favorites. (52 months ago)