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A Drought in Australia, a Global Shortage of Rice

Posted by Matt in April 29th, 2008

DENILIQUIN, Australia — Lindsay Renwick, the mayor of this dusty southern Australian town, remembers the constant whir of the rice mill. “It was our little heartbeat out there, tickety-tick-tickety,” he said, imitating the giant fans that dried the rice, “and now it has stopped.”

The Deniliquin mill, the largest rice mill in the Southern Hemisphere, once processed enough grain to meet the needs of 20 million people around the world. But six long years of drought have taken a toll, reducing Australia’s rice crop by 98 percent and leading to the mothballing of the mill last December.

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Australia’s water woes

Felix Salmon weighs in on the unintended consequences of water pricing:

[P]ricing water can have interesting and not necessarily intended effects. In Australia, for instance, water rights can be traded. When the country was hit by drought, the price of those rights rose, and wheat growers started selling their water rights to the vineyards, because doing so was more profitable than growing wheat. And that, in turn, contributed substantially to the rise in global wheat prices.

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Photos: Drought and the Food Chain
Video: Food Chain - Drought’s Toll

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Published in Australia, Water, , , , , , , , , , , , , , , , , , , , , ,

Map for Deniliquin, Australia

[Countries link to CIA Factbook. States link to Wikipedia.]


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