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OECD and FAO See Food Prices Remaining High and Growing More Volatile

Thursday, May 29, 2008

(American Meat Institute)

Food prices will remain high in the coming decade, with beef and pork prices forecasted to go up an average of 20 percent, according to the latest latest Agriculture Outlook from the Organization for Economic Co-operation and Development (OECD) and the UN Food and Agriculture Organization.

The report, published by the two agencies at the world food summit in Rome, notes that the growing demand for biofuel is one factor contributing to higher prices and suggests further review of existing biofuel policies.

World fuel ethanol production tripled between 2000 and 2007 and is expected to double again between now and 2017. The growth in biofuel production adds to demand for grains, oilseeds and sugar, so contributing to higher crop and food prices.

In OECD countries, at least, this growth of biofuel production has thus far been driven largely by policy measures and the report says that it is not clear that the energy security, environmental and economic objectives of biofuel policies will be achieved with current production technologies.

Among other findings of the report are the following:

 For more information on this report, visit the OECD Website at http://www.oecd.org/home/0,3305,en_2649_201185_1_1_1_1_1,00.html.

 

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