High Commodity Food-Price Decade Challenges All Global Managers – Adam Gordon – Management By Looking Ahead – Forbes
2011 March 2
What is evident is global production is not keeping up, or not yet, so in any plausible future prices cannot be coming down soon. High food prices are therefore what scenario planners would call a ‘predetermined element' - something we should expect for a decade at least, until supply conditions fundamentally adjust.
In terms of thinking intelligently about the future and how to manage it, food is a very clear driver. This is because it is, of all commodities, obviously the most "inelastic" to demand conditions. People can significantly cut their consumption of iPods or scooters, or even health care and education, but not food staples.
The question for leaders and planners is, where does the food-price-crisis go from here; what kind of global operating conditions does it imply for businesses? Is the Arab revolt the extent of it, or are we to be rocked by deeper global social upheaval? Or real famine?
In terms of thinking intelligently about the future and how to manage it, food is a very clear driver. This is because it is, of all commodities, obviously the most "inelastic" to demand conditions. People can significantly cut their consumption of iPods or scooters, or even health care and education, but not food staples.
The question for leaders and planners is, where does the food-price-crisis go from here; what kind of global operating conditions does it imply for businesses? Is the Arab revolt the extent of it, or are we to be rocked by deeper global social upheaval? Or real famine?
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