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Food Shortage in Silicon Valley

 
 
Reply Wed 23 Apr, 2008 09:24 am
Wow!


At a Costco Warehouse in Mountain View, Calif., yesterday, shoppers grew frustrated and occasionally uttered expletives as they searched in vain for the large sacks of rice they usually buy.

"Where's the rice?" an engineer from Palo Alto, Calif., Yajun Liu, said. "You should be able to buy something like rice. This is ridiculous."

The bustling store in the heart of Silicon Valley usually sells four or five varieties of rice to a clientele largely of Asian immigrants, but only about half a pallet of Indian-grown Basmati rice was left in stock. A 20-pound bag was selling for $15.99.

"You can't eat this every day. It's too heavy," a health care executive from Palo Alto, Sharad Patel, grumbled as his son loaded two sacks of the Basmati into a shopping cart. "We only need one bag but I'm getting two in case a neighbor or a friend needs it," the elder man said.

The Patels seemed headed for disappointment, as most Costco members were being allowed to buy only one bag. Moments earlier, a clerk dropped two sacks back on the stack after taking them from another customer who tried to exceed the one-bag cap.

"Due to the limited availability of rice, we are limiting rice purchases based on your prior purchasing history," a sign above the dwindling supply said.

Shoppers said the limits had been in place for a few days, and that rice supplies had been spotty for a few weeks. A store manager referred questions to officials at Costco headquarters near Seattle, who did not return calls or e-mail messages yesterday.

An employee at the Costco store in Queens said there were no restrictions on rice buying, but limits were being imposed on purchases of oil and flour. Internet postings attributed some of the shortage at the retail level to bakery owners who flocked to warehouse stores when the price of flour from commercial suppliers doubled.

The curbs and shortages are being tracked with concern by survivalists who view the phenomenon as a harbinger of more serious trouble to come.

"It's sporadic. It's not every store, but it's becoming more commonplace," the editor of SurvivalBlog.com, James Rawles, said. "The number of reports I've been getting from readers who have seen signs posted with limits has increased almost exponentially, I'd say in the last three to five weeks."

Spiking food prices have led to riots in recent weeks in Haiti, Indonesia, and several African nations. India recently banned export of all but the highest quality rice, and Vietnam blocked the signing of a new contract for foreign rice sales.
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Ragman
 
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Reply Wed 23 Apr, 2008 02:45 pm
Survivalist schmivalist
Didn't these survivalist whack-jobs note that the rice problems relationship to this past winter's blizzards and incredibly bad weather problems in China and other parts of Asia? The sky is NOT falling. China is where rice supplies grow and a major series of blizzards and bad weather wreck rice fields.

God knows why Texas and Louisiana rice products are NOT filling that gap? Perhaps a knowledgable grocery distributor can explain that. Costco must be getting its rice from the cheapest supplier..which is usually China.

hmmm...? Maybe rice suppliers are taking a cue from petroleum industry with the "energy crunch and profits concerns...they're putting the squeeze on American consumers? Something to watch out for.

Flour:
Perhaps,. some flour suppliers stopped putting flour in the pipline while the very recent insane oil prices spiked? Thus, the demand for flour went up greater than expected. And, it went up partly 'cause these survivalists andf profiteers started stocking up like mad thinking the end (or more potential profit) is coming?
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Ragman
 
  1  
Reply Wed 23 Apr, 2008 04:09 pm
clarification
I just found some clarification on this shortage issue through a different source:

http://news.yahoo.com/s/ap/20080423/ap_on_bi_ge/wal_mart_rice


"BENTONVILLE, Ark. - Sam's Club, the membership warehouse division of Wal-Mart Stores Inc., is limiting how much rice customers can buy because of what it calls "recent supply and demand trends."

The broader chain of Wal-Mart stores has no plans to limit food purchases, however.

Sam's Club says it will limit customers to four bags at a time of Jasmine, Basmati and long grain white rice. Rice prices have been hitting record highs recently on worries about tight supplies.

Sam's Club's restriction is effective immediately at all locations where quantity restrictions are allowed by law. It does not apply to other staples such as flour or oil."
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