Food cost warning issued by UN
29/05/2008
The United Nations has advised future food costs will remain high, which could affect those looking to avoid bad debt, or the need to seek assistance with debt management.
Demand from developing countries and the increase of production costs mean that, although current food rates may ease slightly, the long-term outlook is not good, the Food and Agriculture Organisation (FAO) said in its annual Outlook report.
It also cited climate change and increased demand for biofuels as contributing factors.
While soaring wheat and maize prices are expected to fall soon, the FAO warned by 2017 consumers may notice a further 60 per cent increase. Some meat prices could also rise by 20 per cent over the next ten years.
Countries most likely to be affected by the price hikes are developing nations.
Earlier this year soaring food costs caused fierce protests in some African states while parts of South East Asia were plagued by panic-buying over rice supply fears.
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