Food prices are starting to become an issue in the countries where there is cheap labor. If food prices continue to rise, cheap labor will cease to be as cheap. If the price of grain goes up so do cattle prices. From the Associated Press via Yahoo!:
China's food price inflation spiked to 6.8 percent in July over a year earlier, pushing overall inflation to 3.3 percent, its highest level this year, according to government figures.
Elsewhere, a jump in food prices triggered deadly riots in Mozambique this week and the poor in Asia, the Middle East and Africa are under strain after global prices jumped 6 percent in the past two months alone.
No unrest has been reported in China but food prices are politically sensitive in an economy where the poor majority spend up to half their incomes to eat.