UN-OECD outlook: growing food prices in the next ten years

Increased demand for biofuels driven by high oil prices is causing fundamental changes to agricultural markets that could drive up world prices for many farm products, according to the new survey published by the OECD and the United Nations’ Food and Agri

World reference prices for many commodities nearly doubled over the period 2007-2008 but fell sharply from their record highs, driven by increased production, responding to earlier price rises, and by weaker demand, intensified by the commencement of the global economic crisis. However, prices are expected to strengthen with economic recovery over the medium term. For the next 10 years, prices in real terms are still projected at, or above, the levels of the decade prior to the 2007-08 peaks.