“Agflation” Creating Spike in Food Prices
Rabobank reports the Food Price Index will rise by 15% by the end of June 2013
Rabobank said last week world food prices will spike to record highs in 2013, the result of “agflation” based on rising ag commodity prices. The spikes will affect feed crops and have “serious repercussions” for livestock, dairy and poultry producers.
Price spikes are predicted to “stall the long-term trend towards higher protein diets in Asia, the Middle East and North Africa,” the ag lender said. Rabobank said the Food & Agriculture Organization (FAO) Food Price Index will rise by 15% by the end of June 2013, and the lender sees prices for grains and oilseeds remaining “at elevated levels for at least the next 12 months."
