US Drought may Cause World Food Prices Hike 'Within A Year'

by Krishna Bora on  September 26, 2012 at 11:52 AM General Health News
RSS Email Print This Page Comment bookmark
Font : A-A+

World food prices could hike in the first quarter of next year, and then keep rising, as crops in the US have been hit by the country's worst drought since 1936, an analysis by Rabobank.
 US Drought may Cause World Food Prices Hike 'Within A Year'
US Drought may Cause World Food Prices Hike 'Within A Year'

By June 2013, food prices tracked by the United Nations could climb up to 15 percent from current levels, according to the bank's analysts.

"The coming year will see the world economy re-enter a period of agflation as grain and oilseed stocks decline to critically low levels, pushing the FAO [Food and Agricultural Organisation] Food Price Index above record nominal highs set in February 2011," they said.

According to the Telegraph, for policy-makers, the rise in food prices signals problems, as high food prices tend to magnify social unrest.

"Politics and economics are inextricably linked as exemplified by the Arab Spring, which was preceded by a rise in food prices," Hermes fund managers in a recent report said.

According to the report, Rabobank said that the consumer impact could be less painful this time compared to 2008, when there were severe shortages of wheat and rice.

Rabobank said that this is because today's shortages are being seen more in crops used as animal feed, such as corn and soybeans.

Food prices will rise in a very different global economic environment, with Chinese demand slowing and the debt problems of the West weighing on world growth, it said.

Britons, who consume high levels of meat and dairy products, will definitely feel the impact of this latest bout of agflation, Rabobank said.

Source: ANI

Post a Comment

Comments should be on the topic and should not be abusive. The editorial team reserves the right to review and moderate the comments posted on the site.
Notify me when reply is posted
I agree to the terms and conditions

Related Links

More News on:

Why Do We Eat - Nutrition Facts Diet Lifestyle and Heart Disease Hunger Fullness and Weight Control Label Lingo on Food Items: Decoded Top Diet Foods that Make you Fat Top Food for Dieters Selenium - Natural Source Better than Supplements 

News A - Z

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

News Search

Medindia Newsletters

Subscribe to our Free Newsletters!

Terms & Conditions and Privacy Policy.

Find a Doctor

Stay Connected

  • Available on the Android Market
  • Available on the App Store

News Category

News Archive

Loading...