Food prices will rise by between 20 and 50 per cent over the next decade from average levels over the last 10 years, supported by the growth of the biofuel industry and increased food demand in emerging countries, a study warned yesterday.
The report by the United Nation's Food and Agriculture Organization (FAO) and the Organisation for Economic Co-operation and Development (OECD), added that long-term prices would be up to 30 per cent higher than previously estimated.
"Growth in the use of agricultural commodities as feedstock to a rapidly increasing biofuel industry is one of the main . . . reasons for international commodity prices to attain a significantly higher plateau," the report said.
The warning is likely to re-ignite the debate on food versus fuel amid concerns that biofuel production is pushing up food inflation. - ( Financial Times service )
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