Global food prices have fallen in the past century, but a report from the International Food Policy Research Institute says it expects this trend to reverse. Also, the institute believes the rapidly rising world population will outpace food production and lead to significantly higher commodity prices. According to the report world grain prices could double by 2050. Corn prices could rise 100% while the cost of rice could increase 31.2%.
Based on estimates that corn yields can increase by 2% annually up to 2050 in the countries that produce 80% of the world's output now, IFPRI says price increases could be limited to 12%, rather than more than 100%. This would decrease the number of malnourished children in the world by 3.2%. With the same scenario in wheat, 2.2% fewer children in developing countries would be malnourished in the same period.
The report argues that boosting investment in agriculture by at least $7 billion and strengthening world trade flows will be vital to ensuring food security in the future.
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