Food Prices Soar: Few Are Able to Reap Benefits
David Olive, Toronto Star | March 2, 2008
Farmers are among the few beneficiaries of skyrocketing global food prices. ++ Governmental subsidies for producing biofuels combined with droughts and a growing demand for animal feed account for the high prices. ++ Food and energy issues are beginning to collide. ++ Speculation accounts for some of the price escalation, but as arable land becomes scarcer, prices are likely to remain high.
Sat, Apr 12th 2008, 13:39
ilyas m mohsin, ppp, Platinum Contributor (253)
Another important factor reinforcing the price-hike of agricultural products appears to be the droughts in major wheat-producing regions. No wonder the FAO is voicing concenn.
while the first quoted factors may remain constant if normalcy prevails, the latter could open more supply-lines which would offset the demand curve. if that happens, the prices may be difficult to sustain at the current levels. But so is life and one has to do the best one can.