According to an OECD study, food will also become more expensive in the coming years, which could further exacerbate the problem of hunger. This could also mean more issues on panic buying, purchasing and storing more food than what’s really need. Storage facilities said that there are more and more renters who keep food on their rented storage units.
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The global economic and financial crisis, which has also eased energy prices, will not lead to lower food prices. According to a study by the Organization for Economic Development and Cooperation (OECD) and the United Nations Organization for Agriculture and Food (FAO), food will become significantly more expensive in the coming years, according to the study published yesterday in Paris.
Food Prices and Economic Crisis
Although the increasing poverty and hunger have disappeared from the media, the problem is actually larger, going from the OECD and FAO reports produced. They also warn that the extreme price fluctuations of recent years, such as the massive rise in food prices in 2008, cannot be ruled out in the future.
As was the case last year, the highest prices are currently not to be recorded, but food, apart from beef and pork, would still remain more expensive on average than before the record prices, according to the agricultural outlook for the years 2009 to 2018. Grain prices are expected in the next ten Years adjusted for inflation ten to twenty percent above the average from 1997 to 2006. The increase in vegetable oils is said to be significantly higher, the report says.
Agriculture is generally not so badly affected by the crisis. The consumption of food remains constant because it mostly satisfies basic needs. The fact that no record prices for agricultural raw materials are currently achieved has more to do with the fact that the demand for so-called bio-fuel has decreased. With economic recovery, however, demand would increase again. Extreme price fluctuations will then also occur again since the prices of food have recently been more tied to the costs of energy. Rising oil prices make bio-fuel more attractive again in the middle of the crisis.
Worldwide, more than a billion people are currently suffering from hunger, the OECD and FAO emphasized. In the long term, there is less of a risk that there will not be enough food, but that the poor will have less and less access to them. Poverty must, therefore, be reduced and the economy must grow – agriculture in developing countries can contribute to this.