Poor Countries Seen Likely to Be ‘Hammered’ by Food Costs, Water Shortages

By Luzi Ann Javier - Bloomberg

Developing economies will be “hammered” as declining water supply adds to problems confronting farmers who are already struggling to meet food demand, pushing prices even higher, said CH2M Hill Cos.

Countries in short supply of water including China will continue to boost food imports, draining resources in some of the largest agricultural producers including the U.S. and Brazil, said Lee McIntire, chairman and chief executive officer. The company provides services from treating waste water and building irrigation systems to cleaning up nuclear sites.

Food costs tracked by the United Nations advanced in June for the 10th time in the past 12 months, staying near a record on higher sugar, dairy and rice prices, while meat reached an all-time high. The World Bank estimates higher food expenses have pushed 44 million more people into poverty.

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