Have you heard about Rice? Money Tip For the Week
How did this sneak up on us? I found the following article on Fox Business News this morning and it summarizes the current situation very well.
"Wal-Mart, the world’s largest retailer, said on Wednesday (4/23/07) that it would ration the amount of rice each customer can purchase at its Sam's Club warehouse stores because of recent “supply and demand trends.”
“We are limiting the sale of Jasmine, Basmati and Long Grain White Rices to four bags per member visit,” the company said in a statement. “This is effective immediately in all of our U.S. clubs, where quantity restrictions are allowed by law.”
Wal-Mart is the second-major grocer to limit the purchasing of a commodity because of the recent run up in prices. The company said it is not limiting the purchase of other basic food products like flour or oil.
The price of rice, which is the primary foodstuff for the majority of the human population around the world, rose to $894 a metric ton according to the Thai Rice Exporters Association. That’s compared to the $327.25 a ton average price in the same month last year.
The run up in price in rice is primarily related to poor harvests and countries curbing exports. Thailand, Asia’s largest exporter of rice, said it may curb exports.
The World Food Program called the recent run up in prices of rice and other basic commodities a “silent famine.”
Wal-Mart did not say when the rationing would end, but it was “working with our suppliers to address this matter to ensure we are in stock, and we are asking for our members' cooperation and patience.”
Costco the nation's largest warehouse retailer, said yesterday according to Reuters that it had seen increased demand for basic food staples as well like rice and flour. The company had put limits on purchases as well."
Buy food! That's the tip. We have been working in our Seven Steps program to become prepared for all types of emergencies and now one has appeared to present itself. Unlike countries such as the Philippines who are dependent on rice for their survival, we are not. Rice is an ingredient used in many of the foods we are accustomed to including in our diet, but not a mainstay. This same shortage of corn and wheat is a big part of the reason food prices are rising here. This trend will continue as more of the commodities we import will be needed where they are raised.
It is a complicated issue but this much is for certain:
1.Food prices will continue to rise as there are shortages due to weather conditions throughout the world.
2. Food prices will continue to rise as long as we are using corn crops to create alternative fuels and taking them out of the food chain.
3. A trucking strike or strike at a major port (or terrorist act which closes a port) will mean food deliveries will be interrupted and your local grocery store will have it's shelves stripped in a matter of hours. Stores only have a two day supply of food in their back rooms. In a crisis it will take only a few hours to deplete this supply. Even when food is available it will be rationed, just as Sam's Club and Costco are already doing.
4. Money is not food. You can not eat money and all the money in the world can't buy food if it is not available to buy.
5. If this crisis does not escalate you will still be saving money in the future as you use and rotate your supplies. Those of you who are working to get out of debt may have much of your hard work undone if you need to allocate more of your income to food purchases. Buy now, in an organized way, not going into debt to do it, and save later as you can purchase all your food on sale once you have a little stored away.
I will begin publishing a guide for food storage every day. For those participating in the Seven Steps these will be a review for the most part, but for those of you new to food storage it will give you a place to begin.
Tip for the Day:
Getting started. You need to know how much food and non-food items you really use. Today take a permanent marker and put the date on items you do not use up immediately when you open it. If it is nearly empty start with a new one. If the item is partially used mark the point at which it is today with the marker. These should include: toothpaste, deodorant, wetting solution, shampoo and conditioner, TP (date the wrapper and place it in a drawer. Do this for two weeks and at the end of that time count the wrappers. You now know about how many you would need for a 3 month supply. Do the same for hand soap.), ketchup, mayo, salad dressing, soy sauce, mustard, baking powder,cooking oil, sugar, flour, rice, pasta, etc. Don't forget cleaning supplies such as laundry and dish detergents. That's your job today. Tomorrow I will explain why and we will add another tip. By the end of the week you will be able to begin purchasing in an organized, realistic way.
Just getting started, can’t wait to follow along!
I DID hear about the rice and I wasn’t sure if it was an “urban legend” story. Do you still recommend we buy rice now (I have a lot in my food storage) at the higher price or should I wait it out and use my current storage?
Unfortunately no urban legend here. The problem is the weather in rice growing countries has been bad this year. Because of this countries who rely on rice for the staple of their diet are not exporting rice. Other countries such as the Philippines who rely on rice, but do not grow it,are already restricting how much people can buy. They are in real trouble. The price of rice has doubled in the last 5 weeks. I would suggest you purchase rice only if you can still get it at a good price. Otherwise, I would wait and hope the price comes down. This will probably not happen for a year so if you are short on rice get it now as it will probably get worse before it gets better.
Mylar blankets are good, but mylar sleeping bags are getter. They retain body heat better because no breezes get in!
I’m not sure why this comment is after this post but I do agree mylar sleeping bags are good if you know you will be using them for that purpose. I suggest you have some mylar blankets around because they can be used for so…many other things. See the article “The Amazing Mylar Blanket” at TotallyReady.com for many other uses.
For those of you who do not think you have room for storage, let me give you some suggestions. 1. Under your bed. Use either purchased units on rollers or get several large wide boxes, measure the distance available, cut the boxes down, fill them up and slide them under. 2. Clean out your entry closet. There’s usually wasted space in there. Do the same with your clothes closet.3. From an office supply store, get the boxes that held copy paper. Get as many as you can. They are all the same size and are stackable. Stacked two high, they can become a nightstand, two high and two wide, they can be a coffeetable. Measure height x 2, plus width, get a very soft solid color fabric (cut down sheets would do in a pinch) and you have storage that looks relatively presentable. 4. You’ve heard of square foot gardening…think square foot food storage. Stacking same size boxes, 4 ft.high gets you started. 5. What is in the area ABOVE your refrigerator? Most of us have it and never use it. 6. Do you have a desk? You can usually find space at the back you can use. 7. Get an old file cabinet at a garage sale.
Takes up small amount of space, have large amount of storage. These are very cheap,basic
ways to get started. If you can’t find storage space, it’s because you already have too much STUFF. Don’t make excuses. Have a garage sale and use the proceeds to buy food. Good Luck, Charlotte in Missouri
Great ideas! thanks Charlotte…we can find room if we think out of the box!