Food prices to keep rising

Increasing energy prices and the fast growth of developing countries will cause food commodity prices to rise more than previously expected over the next ten years, according to experts.

The annual Agricultural Outlook report released by the United Nation's Food and Agriculture Organisation and the Organisation for Economic Co-operation and Development on Tuesday, 15 June 2010, predicts that food prices in the next decade will surpass levels from the decade before the 2007-2008 food crisis.

The price of wheat, corn and other cereals will be 15-40% higher than the 1997-2006 average, according to the report. It also claims that global agricultural output, boosted especially by developing countries such as Brazil, remains on track to meet the 70% increase required to meet the demand of estimated population levels in 2050. Coffee prices are also rising sharply due to poor harvests in Vietnam and Central America, the International Coffee Organisation said on Monday.