Food prices expected to go even higher
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- June
- 2
The rising cost of food has been the subject of more than one post on this blog in the past (See: “How the cost of food can make children less healthy” and multiple posts on Bloggers Unite for Human Rights day.), so I was disheartened last week to see a report about how world food prices were expected to be perhaps even more volatile over the coming decade.
The joint report by the Organization for Economic Cooperation and Development and the U.N. Food and Agriculture Organization contained grim news.
While the focus of the report was world-wide, naturally, it has ramifications all the way down to the most local level. For example:
Compared with the previous decade, the report said average prices from 2008-2017 for beef and pork will rise 20 percent; sugar around 30 percent; wheat, maize and skim-milk powder 40 to 60 percent; butter and oilseeds more than 60 percent; and vegetable oils over 80 percent.
Here’s some of the highlights from the report:
• Both consumption and production is growing faster in developing countries for all agricultural commodities except wheat. By 2017, these countries are expected to dominate trade in most farm products.
• High prices will be beneficial for many commercial farmers both in developed and developing countries. However, many farmers in developing countries are not linked to markets and are unlikely to benefit from the projected higher prices.
• Cereal markets are expected to remain tight as stocks are unlikely to return to the high levels of the past decade.
• Consumption of vegetable oils, both from oil seed crops and from palm, will grow faster than for other crops over the next 10 years. The rise is being driven both by demand for food and for biofuels.
• Brazil’s share of world meat exports is expected to grow to 30 percent by 2017.
So, how have rising food costs been affecting you? Please respond below or e-mail me off the blog; I’d like to write a follow-up post regarding how people are dealing with the increased prices.
This entry was posted
on Monday, June 2nd, 2008 at 5:07 pm by Amy Vernon.
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Great article. I’m shocked every time I go to the store. I find myself buying less healthy and more of what’s cheap. Instead of good cereal, for example, I recently bought two boxes of Pop Tarts (on sale) because I had a coupon which took off $2 from a gallon of milk if I bought the Pop Tarts. I’m buying less juice and more cheap colas as well. Forget fresh fruit. I’m also learning to like off brands. I find myself buying more food items at Dollar General too.
Hi Amy! Check this out:
In January, 2 gallons of milk cost me $10.76, and a dozen brown eggs was $1.89. The delivery charge was $1.50 (not bad for farm fresh, local stuff.
In May, the same 2 gallons of milk was $11.76, the eggs $2.19, and the delivery $2
In May 2007, the 2 gallons of milk were $9.56, the eggs still $1.89, and the delivery charge $1.25.
I find that I am swallowing the price of quality groceries, but cutting down on the entrée, serving more fruit/vegetables that are cheap and in season, and doing a lot more from scratch. Expensive and worthless foods like pop tarts do not make it into my grocery cart, especially when you can custom make your own with pie crust and jelly!
Wow, Marianne! That’s astounding. We don’t really have the option of farm-fresh local stuff being delivered in my area, but we buy the organic milk at the supermarket. We pay about 3.59 per half-gallon, but we get checkout coupons, sometimes for $1 off two half-gallons, sometimes for $2 off four. Our guys go through about a half gallon a day between the two of them.
But, see, it’s amazing, too, b/c even the delivery went up just since Jan. b/c of gas prices! Thanks for sharing that info.