12 Charts On The Food Crisis That Could Push 200 Million Asians Into Poverty

chart

Food prices are up 30 per cent year-over-year.

If they rise by an equal amount this year, 193 million people will be forced into poverty, according to a new report from the Asia Development Bank. A 30 per cent rise would reduce growth by up to 0.6 per cent. If accompanied by a 30 per cent rise in oil prices, growth will fall nearly two per cent in some countries.

When food prices reached this level in 2008, many called it an aberration. Now it’s seems the rise in food prices is a long term trend, which can’t be chalked up simply to liquidity or weather.

Every country in Asia has taken measures to address the crisis, including tax cuts, export restrictions, price controls and food aid.

Commodity prices peaked in 2008 and then decline during the global recession. Now they're approaching peak

Cereals are driving the increase in food price

However, cereal remains well below the 2008 peak

Reserves are considerably smaller than in the nineties

Part of the crisis is due to many severe weather events

Domestic prices generally trail the futures market, but this isn't the case in places like Vietnam

Domestic wheat prices are following the futures market too

Food is a growing driver of inflation in much of Asia

GDP growth would be crushed in 2011 with a 30% rich in prices. The damage would last into 2012 even if prices declined

Food crisis AND oil crisis equals recession

A 30% increase in food prices would drive 193.2 million Asians -- nearly the population of America -- into poverty

Asia will have to increase crop yields to survive

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.