Tuesday, Nov 24th

Last update04:10:09 AM GMT

You are here News Environment World on track for record food prices 'within a year' due to US drought

World on track for record food prices 'within a year' due to US drought

E-mail Print PDF

Food prices to riseBrace yourself for some painful "agflation". That is the shorthand for agricultural commodity inflation, otherwise known as rising food prices.

They are being driven upwards by the climb in grain and oilseed prices as US crops weather the country's worst drought since 1936, while the farming belts of Russia and South America suffer through similar water shortages.

What we are seeing represents the third major rally in global grain and oilseed prices in just half a decade.

Worse is to come, new research warns. World food prices look set to hit an all-time high in the first quarter of next year – and then keep rising, according to the analysis from Rabobank, a specialist in agricultural commodities.

By June 2013, the basket of food prices tracked by the United Nations could climb 15pc 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 say.


Most Recent Related Stories...

First EPA chief accuses Republicans of ignoring science for political gain

Willlliam RuckelshausThe man considered the father figure of environmental protection in the US has attacked Republicans for...

Half of all tree species in Amazon 'face extinction'

Amazon treesMore than half of all tree species in the Amazon face extinction, warn international scientists.According to...

Prince Charles: Climate Change Root Cause of Syrian War

Syrian draughtEngland’s Prince Charles told Sky News in an exclusive interview that climate change was a root...

Woman Stands in Way of Crews Working on Gas Pipeline Near Nuclear Power Plant

pipeline protest near Indian PointA Westchester woman says she’s standing up for her community by standing in the way of...
America's # 1 Enemy
Tee Shirt
& Help Support!
TVNL Tee Shirt
Conserve our Planet
& Help Support!
Get your 9/11 & Media
Deception Dollars
& Help Support!
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!