Costco CEO Blames Media For Recent Run on Rice

Photo of Noel Sheppard.
By Noel Sheppard | April 23, 2008 - 20:44 ET

In case you hadn't heard, the world is running scared about the world running out of rice.

As a result, here in America, various food retailers have actually begun rationing the amount of the white stuff consumers are allowed to buy.

Deliciously -- pun definitely intended -- the CEO of the nation's leading warehouse club, Costco's James Sinegal, blamed a lot of the problem on the media.

As marvelously reported by Reuters Wednesday (emphasis added throughout):

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Costco Chief Executive James Sinegal told Reuters that he believed the recent surge in demand [for rice] was being driven by media reports about rising global demand and shortages of basic food items in some countries.

Noooo! You mean the media might actually be creating a panic rather than reporting it?

Noooo!

Unfortunately for rice revellers, the news isn't good:

Wal-Mart Stores Inc's (WMT.N: Quote, Profile, Research) Sam's Club warehouse division said on Wednesday it is limiting sales of several types of rice, the latest sign that fears of a rice shortage are rippling around the world.

Sam's Club, the No. 2 U.S. warehouse club operator, said it is limiting sales of Jasmine, Basmati and long grain white rice "due to recent supply and demand trends."

U.S. rice futures hitting an all-time high Wednesday on worries about supply shortages.

That's saying a mouthful, for here's a weekly chart of rice that certainly won't be pleasing to those considering this a dietary staple:

Yikes. Can anyone say, "Parabola?"

Yet, here was the money paragraph destined to anger those in the media that want to blame this entire problem on the Bush administration and/or a low dollar:

Food costs have soared worldwide, spurred by increased demand in emerging markets like China and India; competition with biofuels; high oil prices and market speculation.

Wait a minute. George Bush ISN'T responsible?

Reuters must be off its game, for it is indeed shocking to see such economic honesty from a major wire service, wouldn't you agree?

Photo via halicious.co.uk

—Noel Sheppard is the Associate Editor of NewsBusters.

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How does one explain the

How does one explain the food riots in Haiti, Egypt and Bangladesh? Are they so far away that it is easy to be obtuse?   http://www.cnn.com/2008/WORLD/americas/04/14/world.food.crisis/  While the article I referenced attempts to down play the seriousness of the issue by saying it is due to a number of issues, the point is semantics are lost on the world's poor whose wages haven't risen in tandem with the price of grains and rice.  Is there a "food" shortage? No, what there is for the poor of the world who live at the margins with nothing to spare is a severe reduction in the standard of living, for them it is a zero sum game.  A person can starve to death when there is no shortage of food when the price is so high they can't afford to eat.  

We are looking at the beginning of a huge humanitarian crisis of epic proportions if ethanol subsidies and mandates are not immediately suspended.  Regardless of the growth of India and China, ethanol made from corn or any other food crop or displaced food crop is the straw that breaks the camel's back.  By the end of summer we will be seeing starvation in the third world if we do not act immediately.  

The AGW supporters claim global warming will harm the poor of the world, I ask you, how can you support AGW and ethanol when in fact you are starving the world's poor, the very people you claimed you're trying to save. This is a classic case the cure being worse than the disease.  

I will put this in very black and white terms: Nancy Pelosi and Harry Reid have the power in their hands to alleviate the suffering of the world's poor with an exercise of political courage, repeal the ethanol mandates and subsidies.  If they fail to rise up to the challenge of our times, which btw they helped create, then they will go down in history as two people who condoned genocide of the world's poor by sacrificing them on the alter of AGW just so they could sanctimoniously claim they were trying to save the planet.  How many millions will die on the alter of AGW?  How many is too many?  Will you close your eyes to the suffering of the world's poor that you caused in ignorance if you claim you didn't intend the result?  If you didn't intend starving the world's poor, then you have an ethical commitment to undo the damage you caused.  If on the other hand, you care little for the poor, then say nothing and do nothing and let them starve, you have been warned and you can't claim you didn't know.

 Lord Sidious / Darth Vader 2008  Long Live the Empire!  Come to the Dark Side, it is your Destiny.

Don't Forget DDT

    American Idol pointed out again all the people of the third world dying from malaria.  And the cause?  Same people declaring Gorebal Warming bad declared DDT bad.  How many babies will get thrown out with the bath water, God only knows.

WOW

Noel,

 This is incredible indeed.. I remember on 9-11 gas down the street blew up to 5.99 a gallon and folks were waiting in line! I refused to buy into it so to speak and within a day it went back down.

     Its scary when folks start panicking then ya know for them its i dont care about what is good for the country im getting mine and folks start hording stuff... its nuts.

   This was a great post. I hope they wake up before folks go nuts and run this place into the ground... Excellent job as usual sir.

 

 

honesty is the best policy... unless your running for office.

It doesn't take much panic to cause a shortage.

I remember something similar after hurricanes Katrina and Rita hit. While I was staying with my parents waiting for Rita to play out, there were rumors that gas had rocketed to $5.00 a gallon in nearby towns. It wasn't happening, but of course people started lining up at gas stations anyway.

It doesn't take much panic to start a "shortage". If just 2% of the people freak out and start purchasing 50 times their usual amount of food, you've doubled food demand overnight.

I wonder

Is anyone paying attention to the cold fronts still sweeping across the USA? Did you know that planting of the seasons crops starts around early April so they have plenty of time to germinate and grow to full yield by harvest? The clock is ticking, the ground is wet and the temperature is too low. The fields cannot be prepared in the mud, and seeds don't do well when floating.

Crop failures in the USA are very real this year.

Cold is much worse than warm, if you like eating.

Midwest cold and rain delaying planting

I'm living through the cold fronts here in Iowa.  I referenced them in a forum item here.  BTW, if you like to debate the merits of ethanol and other farm policy, take note of the speculation that we could be in for a repeat of the '80's farm crisis. 

When you put the clowns in charge, don't be surprised when a circus breaks out.

China

Each year China as an industrializing nation has fewer rice farmers. Their exports of this crop has dropped tremendously in the last several years. China is moving people from farms to the factories.

BDS

Wait a minute. George Bush ISN'T responsible? Reuters must be off its game

Looks like Reuters is back on their game with this spin:

http://news.yahoo.com/s/nm/20080423/sc_nm/science_dc

Sounds like a whole bunch of James "I am being supressed" Hansen's at the EPA.

Oh Puh -lease

Using the word "EPA" and "meddling" in the same sentence, and not in the roles of subject and intransitive verb (e.g., The EPA is meddling again), is so ironic it almost makes my head explode.

The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane. - Marcus Aurelius

During Jimmah Carter's

During Jimmah Carter's artificially caused gas crisis in the 70s I remember that a great deal of the difficulty was caused by people topping off their tanks due to fear and that caused such a high percentage of our inventory to be driving around in cars and that caused more and more people to spend hours in line to top off their tanks thereby reducing the available inventory even more.

I suspect the rice crisis is the result of a double whammy of corn prices being so drastically pushed up b/c we are using one of the basic staple crops world wide for gasoline and the MSM screaming wolf over and over magnifying every little story of a store running out of the now more in demand rice and round and round we go.

The shame of the whole thing is that there are hundreds of millions of people who are being squeezed out of the food market partially so our green freaks can feel good about ethanol.  Sick!

sk,did you say

sk,did you say something?.....Yawn.

Noel, Thanks for the heads-up.

The whole rice shortage is news to me. I cook up three pounds a week and fry it with everything.

I always wondered who bought those whopper 25 pound bags. Guess I'll stock up on a couple before they run out.

Biff, ah, what good is rice, anyway.

After all, you can't actually grill the stuff, as it falls right through the cooking grate onto the charcoal.

LOL-Notice I didn't say burner. :-)

Theme for Election '08: Who cares?

I think James Sinegal might be correct

Driving into work this morning I hear the local radio crew gleefully reporting this story and how I am now limited to (4) 20lb bags of rice per visit to my local Sam's Club.

Somehow, I think I'll survive since I eat maybe one box of Rice-A-Roni a month and have never neeeded to buy over 80lbs at one time.

4 - 20 lb bags?!?! 

4 - 20 lb bags?!?!  LMAO!!!  With rations like that the rice warehouses of the world are going to be bursting at the seems in no time!  Hysterical! 

I believe the 4 20-lb bags

I believe the 4 20-lb bags per customer limit was aimed toward restaurants or catering-type businesses.  They're the ones who will feel the limits first.  Might make restaurant prices go up.

"Cry havoc and let slip the dogs of war"  - Shakespeare

I agree - limit was most likely set for

restaurants but to hear the loacl reporting was just comical.  To listen to what I heard this morning would have given you visions of every customer that goes to Sam's comes out with sacks of rice flung over their shoulder like some scene from Vietnam.

You're right. The report I

You're right. The report I heard was breathless and urgent as well. I was about to schedule a full-blown panic attack until they accidently mentioned the "restaurants" word and I was able to ratchet my concern back down to a more comfrotably blasé yawn.

"Cry havoc and let slip the dogs of war"  - Shakespeare

I too didn't know anything

I too didn't know anything about this until I heard it on "the news."  Anything like this that just pops up out of nowhere is very suspect.  I don't believe any of it. Unfortunatly, now that it's out, it will feed on itself until every anti-Bush, anti-American market, AGW, angle that could possibly be thought up is crammed down our collective throats, forcing us to adjust our lives to the whims of the elitist, liberals in power.  Comply, all you gluttonous rice eaters! 

What came to mind for me...

Was this classic King of the Hill episode.
JMR

But though we had plenty of money, There was nothing our money could buy. -- Kipling, "The Gods of the Copybook Headings"


The tax & spend drug war looks racist in the real world.

I heard an update on this driving into work today...

Apparently Costco and Sams are only limiting the purchases of their 25 lb bags of rice. It is apparently some restautaunts that are trying to stockpile rice in response to the fear mongering of the MSM.

Yes, once again the MSM is creating the exact atmosphere that they "reported" existed. These people are getting giddy with all the power that they are realizng they have.

Remember the age old addage...power corrupts, absolute power corrupts absolutely.

 

The day that "politician" became a career choice is the day we started losing the Republic. Let's get it back! Alan Keyes '08.

shadowstats.com

Properly stored rice will be fresh for six months. Properly stored wheat will last 30 years.

Don't you love living in a country where fuel and food prices double, housing triples and the offical inflation rate is 2 per cent.

No wonder we're not in a recession

Shadowstats.com

Don't you love living in a

Don't you love living in a country where politicians prohibt the production of fossil fuels, divert public funds to subsidize the production of biofuels from food stuffs, and then find convenient shills to tell lies in public about relative housing prices.

It's a wonder there hasn't been a recession.

Yes, once again the MSM is

Yes, once again the MSM is creating the exact atmosphere that they
"reported" existed.

And next we will be hearing that people "continue to be worried" and the "sense of hysteria is not going away!" (I wonder why?)

As long as we have the

As long as we have the media there will always be some new hysteria to be worried about.

Remember SARS, bird flu, pandemics, global warming, etc.

 

"They need to have a course in college called common sense and everyone should take it. Problem is there isn't too many people that could pass or teach it." -my grandfather

RAMEN NOODLES!

This is so much like when, as a kid, bologna was cheap and called the poor man's meat and hot dogs were for the elite-then that switched.  Now rice has been sooo inexpensive and every poor person had in diet.  Wow, what's next, RAMEN NOODLES!

Eh, I can't eat rice anymore

Eh, I can't eat rice anymore anyway.  Too high in carbs.

Budweiser to rise too?

They use rice in the brewing process.

Waiting to hear Sams or Costco rationing Bud to two cases a day.

Will rise anyway.  There is

Will rise anyway.  There is a worldwide shortage of hops caused by consecutive crop failures in Germany, the producer of 50% of  hops grown worldwide.

Uh oh, NL 207

Uh oh. A world-wide beer panic!

Budweiser contains hops?

Who knew? ;)
JMR

The tax & spend drug war looks racist in the real world.

There is also on unfounded

There is also an unsubstantiated rumor circulating that Budweiser contains barely malt.

more unfoundedness

 . . . and, as of this writing, non-infectious yeast.