Food Cartels

A global rice cartel? Someone tried this with coffee once. It didn’t work out so well.

Sadly, there are reports that exporting governments are hoarding rice supplies out of fear there may be a shortage. While understandable, this only further constrains supplies and drives up prices. More ominously, if prices start to fall, and these governments decide to sell their stockpiles while the price is still relatively high, the sudden increased in supply could flood the market, dampen prices suddenly and really hurt farmers. Boom and bust in the food industry… nothing most farmers aren’t familar with.

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