Food prices to stay high in next decade

Food commodity prices will remain high by historical standards over the next decade but ease back to well below current peaks, says a report to be published next week by the OECD and the UN Food and Agriculture Organisation.

Between 2008 and 2017, growing demand
will continue to keep prices above historical levels even if well
below current peaks, the OECD-FAO Agricultural Outlook, concludes. On
average over the coming 10-year period, nominal prices for cereals,
rice and oilseeds are expected to be 35 percent to 65 percent higher
than on average in the past ten years," the document said.

Prices for many of those commodities
doubled between 2005 and 2007 and continued to climb in 2008, it
noted.

In order to feed growing demand,
agricultural production would have to increase 50 per cent by 2030.