the power of owning food- invest in our nation
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The Power of Owning Food
Pop quiz...
If you bought $100,000 of bulk raw honey two years ago, how much could you
sell it for today?
$171,000
What if you bought $100,000 of other bulk foods back in
August 2011?
Yellow Corn $121,000Red Lentils $131,000White Rice $157,000Red Wheat $129,000
White Wheat$126,000
Pinto Beans:
$225,000
Why August 2011?
That’s when Bulk Food International was formed.
We are currently the only vehicle for the general public to buy store and sell bulk food.
Major Factors
- Supply and Demand- 2007- China and Cargill take-over
People Need
to Eat
Farmers
Supply vs Demand
SUPPLY
Farm land Disappearing World-wide.
Year Beans % Oats % Potatoes % Rice % Wheat % Corn %1990 32,379 357,654 402,110 156,088 2,729,778 73,075 1991 33,765 4.3% 243,851 -31.8% 417,622 3.9% 159,367 2.1% 1,980,139 -27.5% 74,962 2.6%1992 22,615 -33.0% 294,229 20.7% 425,367 1.9% 179,658 12.7% 2,466,798 24.6% 78,146 4.2%1993 21,862 -3.3% 206,731 -29.7% 430,349 1.2% 156,110 -13.1% 2,396,440 -2.9% 69,756 -10.7%1994 28,950 32.4% 228,844 10.7% 469,425 9.1% 197,779 26.7% 2,320,981 -3.1% 78,231 12.1%1995 30,689 6.0% 161,094 -29.6% 445,099 -5.2% 173,871 -12.1% 2,182,708 -6.0% 70,531 -9.8%1996 27,912 -9.0% 153,245 -4.9% 499,254 12.2% 171,599 -1.3% 2,277,388 4.3% 78,251 10.9%1997 29,370 5.2% 167,246 9.1% 467,091 -6.4% 182,992 6.6% 2,481,466 9.0% 78,725 0.6%1998 30,418 3.6% 165,768 -0.9% 475,667 1.8% 184,443 0.8% 2,547,321 2.7% 78,502 -0.3%1999 33,146 9.0% 145,628 -12.1% 478,093 0.5% 206,027 11.7% 2,295,560 -9.9% 76,524 -2.5%2000 26,543 -19.9% 149,165 2.4% 513,544 7.4% 190,872 -7.4% 2,228,160 -2.9% 78,522 2.6%2001 19,610 -26.1% 117,602 -21.2% 437,673 -14.8% 215,270 12.8% 1,947,453 -12.6% 74,910 -4.6%2002 30,312 54.6% 116,002 -1.4% 458,171 4.7% 210,960 -2.0% 1,605,878 -17.5% 76,452 2.1%2003 22,492 -25.8% 144,383 24.5% 458,199 0.0% 199,897 -5.2% 2,344,415 46.0% 77,527 1.4%2004 17,743 -21.1% 115,695 -19.9% 455,806 -0.5% 232,362 16.2% 2,156,790 -8.0% 79,732 2.8%2005 26,576 49.8% 114,859 -0.7% 423,788 -7.0% 222,833 -4.1% 2,103,325 -2.5% 81,047 1.6%2006 24,155 -9.1% 93,522 -18.6% 440,698 4.0% 194,585 -12.7% 1,808,416 -14.0% 77,125 -4.8%2007 25,586 5.9% 90,430 -3.3% 444,875 0.9% 198,388 2.0% 2,051,088 13.4% 92,580 20.0%2008 25,558 -0.1% 89,135 -1.4% 415,055 -6.7% 203,733 2.7% 2,499,164 21.8% 84,535 -8.7%2009 25,427 -0.5% 93,081 4.4% 432,601 4.2% 219,850 7.9% 2,218,061 -11.2% 85,095 0.7%2010 31,801 25.1% 81,190 -12.8% 404,273 -6.5% 243,104 10.6% 2,206,916 -0.5% 87,013 2.3%2011 19,890 -37.5% 53,649 -33.9% 429,647 6.3% 184,941 -23.9% 1,999,347 -9.4% 89,924 3.3%2012 31,925 60.5% 64,024 19.3% 462,766 7.7% 199,543 7.9% 2,266,027 13.3% 94,754 5.4%2013 24,486 -23.3% 65,879 2.9% 437,483 -5.5% 189,886 -4.8% 2,129,695 -6.0% 93,924 -0.9%
23 Yr Change -24.4%
-81.6% 8.8% 21.7% -22.0%
28.5%
Crop Production is a dism
al
failure!
Drought 2012
Drought 2013
Drought 2014 YTD
DEMAND
What is the funny thing about food?
Remember this simple fact:
The demand for ALL other products and services will ebb
and flow with the economy, except FOOD and WATER.
More people = More demand
Year World Pop % change US Pop % change
1990 5,287,869,228 249,622,814
2013 7,098,495,231 34% 316,148,990 27%
Year Beans % Oats % Potatoes % Rice % Wheat % Corn %1990 32,379 357,654 402,110 156,088 2,729,778 73,075 2013 24,486 -23.3% 65,879 2.9% 437,483 -5.5% 189,886 -4.8% 2,129,695 -6.0% 93,924 -0.9%
23 Yr Change -24.4%
-81.6% 8.8% 21.7% -22.0%
28.5%
Same 23 year period
2007
The modern concept of Strategic Food Reserves was
first proposed in the 30’s, then further established by
Roosevelt. Then, in 2007 the US government monetized its entire food reserves with the ending of the 2002 Farm bill.
From the LA Times:
“Cargill, the largest private company in the world, began its business in 1865—
with a single grain silo. Today it is believed that Cargill's global network of silos store
more grain than any other private company…
But no one knows for sure because, like the Chinese, Cargill executives keep the
amount of grain they buy, sell and store a secret. In 2008, Cargill parlayed its
immense wheat holdings into an 86% jump in profits on global commodities
exchanges…
Such windfalls during times of panic, price hike and scarcity are not surprising:
Since the days of food shortages in ancient Greece and Rome, spikes in the price of bread encourage grain bankers
to hoard, not bring more grain to market.”
-LA Times 2012
What was Cargill’s reported profit in 2008?
$3.7 Billion
Summary:
Cargill IS our reserves.
What is China saying to us after we lost our grain reserves?
Shift in 2008
Translation:China will also be our grain
reserves.
Cargill and China both understand something that
the typical investor doesn’t..
The Power of Owning Food
HIGHEST BIDDER
Why do we export more wheat than anyone else in the world
while our own domestic demand increases every year?
Because other countries pay more!
For example:
We sold $20 Million of Wheat to brazil in 2012. Then, because of political problems with Argentina last year, Brazil decided to buy
more wheat from the US instead of Argentina. How much wheat do
you think we (“we” means Cargill) sold them in 2013?
$922 Million!!!
When another currency is stronger than the dollar, that country can bid higher on the price of wheat. And those with paychecks written in US Dollars just have to pay more for that
food.
Why did food prices soar in the 70s?
“Considering the U.S. economy as a whole, inflation for consumer goods, including food, was abnormally high almost across the board starting in 1973. This coincides with a major depreciation
of the U.S. dollar that took place in the early 1970s and raised the cost of imported goods. At the
same time, a sharp rise in fuel and energy prices resulted from global shortages in supply, which had ripple effects throughout the economy and
took many years to abate.”-USDA Article on Food Prices on April 07, 2014
Read an except from the summary of a congressional report:
The Depreciating Dollar: Economic Effects and Policy Response
Craig K. Elwell Specialist in Macroeconomic Policy
February 23, 2012
“A depreciating currency could affect several aspects of U.S. economic
performance. Possible effects include increased net exports, decreased
international purchasing power, rising commodity prices, and upward pressure on interest rates; if the trend is sustained, the
United states may also experience a reduction of external debt,
possible undermining of the dollar’s reserve currency status, and an elevated risk of a
dollar crisis.”
“To give Congress the economic context in which to view the dollar’s recent and
prospective movement, this report analyzes the evolution of the exchange rate since its peak in 2002. It examines several factors
that are likely to influence the dollar’s medium-term path, what effects a
depreciating dollar could have on the economy, and how alternative policy measures that could be taken by the
Federal Reserve, the Treasury, and the 112th Congress might influence the dollar’s
path.”
Does that strike your core as it does mine?
Is this not the exact scenario that is unfolding before our very
eyes?
Are China and Cargill going to be the only ones with the
foresight to cash in on another multi-billion dollar windfall
decade?
When massive drought plagues our nation, are China and Cargill going to be the only ones with
supply?
I see a future for our nation where the American people
have their own grain reserves
And we let our own bank accounts benefit from…
The Power of Owning Food
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