A global race for grain trading power is putting more of the world's vital cereals in the hands of fewer companies, with a string of recent acquisitions raising fears that consumers will pay even more for their food, while farmers are forced to accept lower prices for their produce.
Grain trading heavyweights are trying to grab a larger slice of a booming market as developing economies seek food security. They already account for about 75 percent of the global grain market. There is the possibility of a monopolistic situation.
With food price volatility increasingly coming to the fore, most recently in the wake of drought in the United States and other key producing regions, concern is growing among importers about extra upward pressure on prices.
The United Nations sounded alarm bells on market volatility this summer as corn alone surged around 40 percent in less than a month. Soya beans hit record highs,
while wheat also shot up dramatically, reviving memories of the 2007-2008 food crisis.
Urgent humanitarian solutions need to be implemented especially with great lingering hunger problems in the daily lives of those who are living below the poverty line in the Third World countries now.
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