Chapter 325 - 325: Hungry World

October 27, 2022.

The 11th day since the locust plague erupted in South America.

In just those 11 days, international grain prices had skyrocketed to varying degrees.

Soybeans were up 173%, reaching 1,537 US Dollars per ton; corn was up 133%, at 725 US Dollars per ton; wheat was up 131%, at 806 US Dollars per ton; and rice was up 138%, at 811 US Dollars per ton.

As the four core commodities of the international grain market, they all saw massive price surges.

What was even more terrifying was that these increases were still ongoing.

After consolidating data from all sides, major global grain futures research institutions easily discovered that the global food gap would reach a staggering 180 million tons within the next 6 to 12 months.

This was based on a year-over-year comparison with 2021's data.

The Far East would require approximately 160 million tons of soybeans and corn, mainly for oil extraction and animal feed, though this demand could be partially regulated.

Following that, East Japan imported 139 million tons; Aztec imported 115 million tons; the Suez Republic imported 113 million tons;

Java imported 100 million tons; Western Rome imported 82.91 million tons; the Iberian Kingdom imported 80.59 million tons; South Korea imported 79.3 million tons; the Netherlands imported 75.96 million tons; and the Abd Wad Republic imported 70.81 million tons.

These were the world's top ten grain-importing nations in 2021.

This year, however, due to natural disasters and rice blast disease, Tianzhu was on the verge of turning from a grain-exporting nation into a grain-importing one.

Likewise, the South American Redwood Federation and the Pampas Republic, also core grain-exporting regions, were set to see a drastic reduction in their soybean and corn yields due to the locust plague.

America and Maple Country in North America, as well as Lucia and the Central Asia Region, were now entering autumn and winter, making it impossible to plant new crops in time to compensate for the production shortfall in South America.

For now, only Kangaroo Country could manage to squeeze out some extra production.

Of course, amidst this string of bad news, there was one piece of information that could be considered marginally good: the Javan Region would not need to purchase grain on the international market this year, as the Homo Sapiens Company had sufficient grain reserves to supply the area.

But just because the Javan Region didn't need to import 100 million tons of grain didn't mean other regions were in the clear. This was because the Javan Region is the world's largest producer of palm oil.

To be precise, the Homo Sapiens Company was now the world's largest palm oil producer, expected to produce 92 million tons of crude palm oil this year, accounting for about 94% of the total global output.

The largest importers of palm oil were Tianzhu, the European Union, and America.

With grain prices soaring, the prices of edible oil materials were soaring right alongside them.

It was a true chain reaction.

America could still export, but with a colossal global shortfall of 180 million tons, not even the ABCD cartel, which America controlled, could produce that much at this time.

After all, the locust-ravaged production areas in South America were the ABCD's own grain production bases.

To compensate for the losses in their South American production areas, the ABCD naturally would not release their reserves. Instead, they were fanning the flames, pushing grain prices even higher.

...

Xiangjiang.

As a free port and financial hub, the city was reeling from the fierce impact of the North American stock market crash. The ensuing global food crisis was now also beginning to affect local prices.

Tsim Sha Tsui District, Xiangjiang.

Inside a roasted meat shop, the owner and head chef, Niu Dawang, was teaching his son, Niu Yinghua, how to mix various sauces.

Just then, his wife, Li Caiyun, walked into the shop, grumbling as she carried a large pile of seasonings and vegetables.

"Mom, what's got you so angry?"

Li Caiyun replied helplessly, "Prices at the wholesale market have gone up again. If this keeps up, we'll have to raise the price of our lunch boxes. Otherwise, we won't make a profit."

"Prices went up again?"

"A pound of shallots is now 17 dollars, and sand ginger is 38 dollars a pound."

Niu Dawang's brow furrowed. He quickly called a few of his old friends who were wholesalers.

"Hey, Old Jiang, it's me, Dawang."

"Oh, Dawang! Need some chilled chicken? The price has gone up a bit recently."

Niu Dawang's heart sank. He quickly asked, "How much of an increase?"

"15.3 dollars a pound."

"That much?"

The wholesaler on the other end of the line gave a bitter laugh. "It's not that I want to raise it so much, but my costs are too high right now. If I don't raise prices, I'll lose money."

After a few more words, Niu Dawang hung up, worried. He then called his wholesalers for whole ducks, chilled geese, and frozen pork and offal.

Without exception, all their wholesale prices had risen by around 40 to 70%.

"This won't work. We have to raise our prices too."

"Dad, how much should we raise them by?" Niu Yinghua asked quickly.

Niu Dawang grabbed a pen and calculated on a small notepad before deciding on the price hikes. "The three-meat combo will go up to 65 dollars, roast duck leg with rice to 55, and char siu with rice to 60..."

"Isn't that too small of an increase?" Niu Yinghua had been to school; he knew this hike wouldn't be enough to offset the rise in raw material costs.

But Niu Dawang shook his head. "We'll just make a little less. If we raise it too much at once, customers will just buy groceries and cook at home. Maybe the prices will drop again in a few months."

"Heh..." Niu Yinghua gave a dry laugh.

'He didn't believe for a second that prices in Xiangjiang would fall back within a few months. He'd been seeing tons of reports and analysis online these days about the North American stock market crash, the locust plague in South America, and the rice blast disease in South Asia.'

'At this rate, it would be difficult for prices to return to their previous levels within a year or so.'

'But what could he do? As an ordinary person at the bottom of the ladder, he had no power to change things like financial crises, food shortages, or regional wars. He could only watch as it all unfolded.'

As his mind wandered while he wiped the shop's glass window...

He noticed a TVB news crew not far away, interviewing passersby.

A middle-aged woman with a perm that looked like instant noodles, carrying various plastic bags, was stopped by a female reporter.

"Ma'am! Buying groceries to take home?"

The woman nodded. "That's right!"

"How are the prices at the market lately?"

Hearing this, the woman's face twisted with a pained expression. "Ugh! Don't even get me started. Fruits, vegetables, eggs, pork—everything's gotten more expensive lately. If this keeps up, no one will be able to afford groceries."

The reporter quickly asked, "Compared to before, roughly how much have prices increased?"

"Before, three baby napa cabbages were 15 dollars, now they're 21. A pound of pork used to be 18 dollars, now it's up to 27 dollars a pound..." The more the woman spoke, the more agitated she became.

After interviewing the woman, the reporter moved on to the surrounding shops.

The interviews revealed that price hikes had become a common phenomenon across all industries.

After all, rising food prices meant the cost of living would also rise, but it was difficult for the average person's salary to keep up.

What was even more terrifying was that this was all happening during a global economic crisis. Many financial institutions and small companies in Xiangjiang, unable to withstand the shock, were already showing signs of bankruptcy or were laying off employees.

This double pressure was the common reality throughout the entire Far East Region.

Xiangjiang was just a microcosm of it all.

Of course, while things were much tougher in the Far East Region, they could grit their teeth and endure it. At worst, it meant eating less meat, eggs, and dairy; they could still manage to fill their stomachs.

East Japan and South Korea, for example, still had the support of low-cost grain from America, which allowed them to barely stabilize the price of their staple foods.

As for the other major power in the Far East, they had significant domestic grain production and strategic reserves. Feeding their population wasn't a major issue, but they faced shortages of animal feed and cooking oil.

The region facing the most hardship right now was, in fact, Tianzhu.

With a grain production shortfall of about 45 million tons compared to last year, even if the people of Tianzhu were more accustomed to hunger, they would need to import at least 20 million tons just to prevent widespread famine.

On the international market, countries everywhere were scrambling for grain. Without enough US Dollars, Tianzhu couldn't hope to buy very much.

At that moment, facing a crisis both at home and abroad, Dharma made a difficult decision.