UN Report Predicts Food Price Increases
Food and Agriculture Organization says some grain prices could rise as much as 40%.
Compiled by staff
Published: Jun 16, 2010
Food security, or insecurity, worries may be rising with food prices over the next decade if a report from the United Nations Food and Agriculture Organization and OECD is correct. The organization says that food prices will rise over the next decade and pegs grain price increases at between 15 and 40%.
FAO blames rising demand for biofuels made from food crops as one factor that will help keep prices rising - this despite falling corn prices and higher ethanol production seen this year. However, rising demand from the growing world population will also pressure prices.
The study does note that food price increases could be slowed by rising ag production in emerging nations, noting improved output from Brazil, China, India, Russia and Ukraine.
The only food that won't rise in price? Pork. The report points to rising production gains for pork in China and Brazil as factors that will mitigate prices for this protein source.
Oilseed, grain and dairy prices, adjusted for inflation, will climb between 2010 and 2019 compared with the decade up to 2006, before the 2007-2008 price spike. The report notes that global food production has to rise by 70% by 2050 as world population expands to 9.1 billion people from about 6.8 billion today. However the report notes that farm output growth remains on track to meet that goal.
The FAO and OECD also predict vegetable oil prices to rise more than 40%, and dairy prices to rise 16 to 45% between 2010 and 2019.
Permalink: Click here
Tagged: FAO, farm, ethanol, biofuels, food security
|