Wednesday, April 23, 2008

Food Shortage Business Opportunity

Of course there is an opportunity here... Hong Kong is a free port, there are probably 90,000 Filipina housemaids in Hong Kong, and you can reach them all in about 5 minutes on any Sunday about 1pm outside of Pacific Place, Central, Hong Kong side.

Count on USA liberals being as crazy about biofuels as conservatives are about "fighting" terrorism. This means we've years yet to go on these shortages. Every solution proposed will only make matters worse. The signal to "get out" will be talk of ending the biofuels programs, rice subsidies, etc. There is not a single voice in the commanding heights, not in politics, religion, academia, law, farming, charity that is suggesting the only solution that will work, so you can count on plenty of suffering to come.

Here is the business, perfect summer job for the college student: Buy in USA a 20' container of 50 pound bags of rice, and ship it to Hong Kong. (You still have some planning to do, but the rice will cost more in 3 weeks than it does now, so don't delay.) Fly to Hong Kong. Work out the optimum cost/benefit packing for express boat shipping (HK to Manila is about the distance Seattle to San Francisco, no big deal by boat) of the rice (say 3 catty) and then pack up a sample and offer to ship said package to any address the gals write down, at your price. Or they can walk the package across the street to Central Post Office and ship it themselves. Cash business, once a week. Steady flow of rice into the Philippines. You do well while doing good. No wicked "charity" organization involved.

These gals work in Hong Kong and remit money to the Philippines so families can buy rice. If there is no rice to buy in Cebu, they'd prefer the gals remit rice to money.

Why don't they just do it themselves? USA rice is massively subsidized, we pay little for it, the taxpayers make up the balance. Why not just import the rice to the Philippines? The very fact there are shortages tells you rice imports are controlled. You'll never get it into Manila in bulk shipment.

If rice imports are controlled, how will these shipments get through? The Filipinos don't mind rioting if there are rice shortages... such a safety valve would likely be welcome.

The Filipinas in Hong Kong will be a perfect market signaler, telling you when to get out. Take on a Hong Kong partner for more security but less profit. Do good while doing well.


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