Time for declining food prices at end as world population poised to grow by 2 billion people, Cargill says; global food production must increase 70% by 2050 to feed population, FAO says

Andrew Rogers

Andrew Rogers

LOS ANGELES , February 6, 2012 () – The time for declining food prices has ended, with the world population poised to increase by an additional 2 billion people, according to Cargill Inc, Bloomberg reported Feb. 6.

Global food production must increase 70% by 2050 to feed a world population that is estimated to reach 9 billion from 7 billion currently, as a growing number of wealthy consumers eat more meat, according to the United Nations’ Food and Agriculture Organization.

Food prices tracked by the FAO reached record highs a year ago amid surging grain prices. The food-price index was up 23% year-over-year in 2011 to an average of 228 points, breaking the 2008 points seen in 2008 amid food riots in countries including Haiti and Egypt. Since then prices have fell 11% by December.

Countries including India, Egypt, Vietnam, and Indonesia banned exports of rice in response to the 2008 food price crisis. In 2010, Russia implemented a ban on cereal exports after the country saw the worst drought in at last half a century, which sent grain prices surging across the world.

G20 farm ministers agreed in June to set limits on exports bans and create a crop database to address rising food prices. Wheat prices have doubled since 2005, while raw sugar has doubled since December 2008 and orange juice hit record highs last month.

The desire to produce all food locally is “complete nonsense,” as 2008 export bans were a desire for self-sufficiency, which disrupted global trade and exacerbated food prices at that time, according to Cargill vice chairman Paul Conway.

The primary source of this article is Bloomberg, New York, New York, on Feb. 6, 2012.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

Share:

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.