Archive for September, 2008

Food as the New Oil

Tuesday, September 30th, 2008

By Dean Whittaker

So, what did I learn this month?  While researching for a presentation to the Food Facilities Group of Colliers International, I learned that food as a global resource is on its way to becoming the new oil.  By that, I mean that we are facing an escalation in food costs of 20% to 30% which will further create hardships on the consumer who’s already challenged by a sudden rise in energy costs. As difficult as it is for us in the U.S. who spend 15% to 20% of our income on food, it is much more challenging for the poor, especially in developing countries who spend a much higher percentage (70% to 80%) of their income on food.

Private equity firms and sovereign wealth funds are rapidly acquiring U.S. farm land along with global food processing distribution companies.

I also learned that my food travels an average of 1,500 miles to reach my plate. The implications of this fact on the environment are enormous. A group of individuals in Canada have spent a year limiting their food purchases to only that which has traveled no further than 100 miles. What they missed the most was beer and chocolate.

Lastly, I learned the sorrow of losing a frail little five-year old dog named Marcel, who struggled his whole life just to stay alive, but was always glad to see me when I walked in the door. He will be missed.

Marcel

Whittaker’s New Associate

Tuesday, September 30th, 2008

By Randy Olinger

Whittaker Associates has a new Associate. His name is Randy Olinger. I am he. I’d like to tell you a little about myself, in addition to what can be found in a brief biographical sketch elsewhere on this website.

I met Dean Whittaker through our mutual love of sailing and found that we share an interest in things like technology, nature, and a curiosity about what makes people and communities tick. This past summer, during an extended sailing adventure, we discussed relativity, evolution, and neutron particle accelerators, as well as the virtues of simplicity, patience, and compassion. We agreed, and disagreed. And often, as the sailing day was brought ceremoniously to a close, we came to conclusions like “there is only now; there is no then.” (?)  Once back on land, we set out to find a way to work together, pledging that our mutual endeavors would strive to be meaningful, fun, and profitable.

So, now I come to work with Whitaker Associates having followed an academic and professional path different from most of the existing staff. I will likely bring some ‘different’ ways of looking at problems and devising solutions. Some will be welcomed, some may not. Some will work, others may not. It will be an adventure.

In my new role here at Whittaker Associates, one goal is to ensure that our operating practices effectively support the mission at hand.  What resources are needed?  What strategies are appropriate?

It will fun for me to learn new ways of doing things from the youthful group of information professionals already in place here, and I’ll offer proven ‘old school’ solutions in return.  I admit, I’m not yet sure how I feel about texting, twittering, blogging, and Bar Camps. But then, I was never quite sure what to think about CB radios, dial-up BBS, video games, or primal scream therapy.  Besides, it doesn’t really matter what I think because they just are! The best we can do is to keep an open mind.

One of the many reasons I find the Whittaker business intriguing is the raft of similarities to other arenas in which I have worked (mostly science and technology).  In each, there has been an explosion of available data in recent decades. And, whether it is the task of deciphering the 3 billion+ base pairs that encode the human genome, or trying to capitalize on the rapid proliferation and dissemination of data, ideas, and opinions over the internet, the question becomes – what do we do with all this information?  Whether we are trying to cure cancer or determine what makes corporations act the way they do, the trick is to discover the patterns of intelligence that emerge from these seas of information and boil it all down into simpler buckets of knowledge that provide usable insights and lead to effective actions.  Whittaker Associates has now been providing such services to the economic development and real estate communities for more than 20 years. In the future, we will develop and employ new analytic techniques and tools for giving meaning to the emerging mountains of available corporate data.

Just as important in this process will be a commitment to not lose sight of the Human Element – maintaining a strong connection between WA and not only the companies for which we do work, but also the faces and values of those individuals with whom we do work.
How does one accomplish this?  Where does it all start?

Perhaps, as Mairead Maguire, Nobel Prize winner once wrote,

Take time to listen to the birds, the waves, the wind.
Take time to breathe in the air, the earth, the ocean.
Take time to be silent, to allow God to fill you up with deep peace and love.

(GO SAILING! – r.olinger)

The Music Genome Project

Tuesday, September 30th, 2008

By Jami Miedema

When I’m in the mood to listen to good music, there are few things more frustrating than hearing endless commercials on the radio followed by the same five song rotation. I like variety! By variety, I don’t mean different genres necessarily, but rather different songs with similar attributes. That’s why I’m so excited to have found Pandora, an online radio service that uses the Music Genome Project to recommend music I may enjoy.

The Music Genome Project was started in early 2000 by individuals who were interested in analyzing music to be able to classify songs according to certain characteristics. Their passion for music resulted in a complex algorithm used to organize songs based on over 400 attributes. Pandora is using this technology to make music suggestions to their users.

Pandora is easy and fun to use. Once you create your free account, enter a song or artist to create a music station. You can create as many stations as you wish, then let the music play. If you like a song, give it a thumbs-up, and more songs similar to that one will play. If you don’t like the song, give it a thumbs-down, and it will skip over the song, not play it again, and will play fewer that are like it. When you’re in the mood for something else, change your station. Pandora also gives its users the option to buy the song from Amazon or iTunes, bookmark the song/artist on a favorites list, move the song to another station, or opt to not play the song for a month. It also explains why it picked the song that is playing, and gives a brief description of the artist, album, and song qualities.

The more an individual uses Pandora, the “smarter” the technology gets at guessing its user’s tastes and preferences. If you’d like to set up an account, go to www.pandora.com. Pandora can be accessed anywhere with an online connection, and all you need is an email address to log-in. If you’re tired of your local radio station’s playlist or need to update your iPod, I urge you to give Pandora a try!

Best-Performing Cities

Tuesday, September 30th, 2008

By Jim Bruckbauer

Every year, the Milken Institute in California ranks the Best-Performing Cities according to economic growth.  These include long-term and short-term measurements of employment, salary growth, and high-tech output.

This year’s rankings of where America’s jobs are being created and sustained shows the impact of a broad rebound in the technology sector, along with strong activity in exports and energy production.

It seems as though cities that depend on industry and manufacturing are still continuing to show a steady long-term decline. The lowest performers on this year’s index came from the industrial Midwest, with nine of the lowest-ranked cities found in Michigan or Ohio.

From their findings, among the nation’s 200 largest metro areas, these are the top 10 performers of 2008 (with their 2007 rankings in parentheses):

1. Provo-Orem, Utah (8)
2. Raleigh-Cary, North Carolina (10)
3. Salt Lake City, Utah (18)
4. Austin-Round Rock, Texas (20)
5. Huntsville, Alabama (16)
6. Wilmington, North Carolina (2)
7. McAllen-Edinburg-Mission, Texas (7)
8. Tacoma, Washington (50)
9. Olympia, Washington (37 in the 2007 ranking of small metros)
10. Charleston-North Charleston, South Carolina (12)

Among America’s 20 largest cities, Houston-Sugar Land-Baytown, Texas, posted the best performance of 2008. Previous standouts Riverside-San Bernardino-Ontario, California, and Phoenix-Mesa-Scottsdale, Arizona, both experienced significant declines, most likely due to their housing markets.

In a separate ranking of 124 small metro areas, Midland, Texas came out on top. Like other booming Texas towns, Midland is enjoying a strong boost from oil and gas production.

It will be interesting to see who makes the ranks on the Best-Performing Cities index in future years. For more info on their report, check out http://bestcities.milkeninstitute.org.

The Silent Tsunami: Trouble in the Global Food Market

Tuesday, September 30th, 2008

By Vidhan Rana

In the early 1800’s, Thomas Robert Malthus expressed his views on population growth and stated that the world will return to subsistence-level conditions as a result of population growth outpacing agricultural production. His theory was later named Malthusian Catastrophe. His theories were widely criticized because it failed to foresee the improvements in agricultural technology. Better seeds, effective fertilizers and pesticides, and enhanced irrigation systems vastly improved crop yields and avoided the catastrophe. However, with over 6 billion people occupying the earth today and crop yield improvement declining, Malthus’ ideas are gaining prominence in the 21st century.

World grain consumption, the total of corn, wheat, and rice, has increased tremendously over the years. In 2007 the world consumed 2,098 metric tons of grain compared to just 815 million metric tons in 1960. Thankfully, production has kept pace with the rising consumption. However, economists and market specialists all around the world have been concerned about whether the production will keep up with rising consumption. Lately, there have been signs that show that it is not. Since 2000, the world has a deficit in grain (consumption is higher than production) every year except 2004. The chart below shows how the world has gone from a surplus to deficit since the last decade. The sharp turnaround spells trouble.

chart

With deficits increasing, grain prices have double or even tripled in some instances since last year. Wheat prices averaged around $3.75 per bushel in 2006 and rose to around $7.50 per bushel in 2007. Similarly, corn prices have risen from about $2.25 per bushel in 2006 to over $4 a bushel in 2007.

There have been numerous incidences reported of riots because of food shortages and higher prices all around the world. In April 2008, rioting in Haiti left five people dead including a U.N. peacekeeper and forced the resignation of Haiti’s Prime Minister. A United Nation food expert called this phenomenon the “silent tsunami”. Over 100 people worldwide have been pushed into deeper poverty because of rising food prices. In May, President Bush asked Congress for $770 million in overseas food aid. The aid, though substantial, is only a short-term solution. Policy makers all around the world are trying to find a longer term solution but few have done so unsuccessfully.

According to Lester Brown of Earth Policy Institute, the cumulative effect of the food shortages around the world will threaten food security. If the situation is not resolved quickly, he predicts that “social unrest and political instability will spread, and the number of failing states will likely increase dramatically, threatening the very stability of civilization itself.” These are dire predictions, and I hope that world leaders will heed his warnings and act!