10-30% increase in ag prices expected in decade
Vegetable oil and corn will become costlier.
Lower economic growth and oil prices may push up prices of agricultural commodities by only 10-30% in 10 years, less than what was previously forecast, according to a Finacial Times news report.
In their report Agricultural Outlook 2009-18, the United Nations' Food and Agriculture Organization and Organization for Economic Cooperation and Development said the continued weakness in the general economy will further decrease prices over the next two to three years.
However, it suggests the prices should strengthen with economic recovery.
Vegetable oil and corn will become costlier followed by rice, sugar and wheat. Compared with these, prices of meat and dairy products will change little.