Consumers worldwide can expect to pay more for food as prices are projected to rise into 2019. That’s according to the United Nation’s Food and Agriculture Organization and the Organization for Economic Co-operation and Development.
In a report, the groups cite dietary changes and a growing global population as the drivers behind the price increases. The demand for meat and processed food in developing countries is increasing as income levels rise. Also driving price gains in the meat sector are lower supplies and higher feed costs.
Specific to pork production, the groups forecast that growing pork production in Brazil and China could temper price gains in that sector. Although some U.S. economists argue that China’s lack of corn and soybean production could ultimately limit its production.
The report presents the prospect of other food prices climbing beyond the 1997 to 2006 levels, however, prices on average will remain below those seen during the 2007 and 2008 spike. Beef and pork prices did not rally during that period. Forecasters project production costs to increase by 10 percent to 20 percent by 2019 as compared to 2007/2008 levels.
By 2050, the global population is expected to hit 9.1 billion, up from roughly 6.8 billion today. It’s projected that food production will have to double between now and 2040. FAO officials say that it will have to increase by 70 percent by 2050.
Source: United Nations, Meatingplace.com