Biofuel demand is another factor, expected to increase 20% annually to 92 million tons in 2011, according to the Freedonia Group.

FORBES: JP Morgan: Invest in Companies that Combat Rising Food Prices

But the Freedonian Food Reserve (popularly known as the Fred), the state monopoly that controls food distribution on Freedonia, imports the same amount of food each week regardless of the season.

FORBES: A Parable

The island nation of Freedonia has a problem.

FORBES: A Parable