Wheat, Oil and Dairy Prices Predicted to Rise Dramatically, Says FAO

The Food and Agricultural Organization (FAO) has predicted the average price of wheat, oil, grains and dairy will rise by 40 per cent within the next decade.

The annual Agricultural report, compiled in conjunction with the OCED, said that while prices have fallen since 2008 they are unlikely to fall to those seen before the economic crisis.

Wheat and grain are estimated to rise between 15 and 40 per cent, in real terms, and dairy prices are set to rise 16-40 per cent.

Vegetable oils were likely to see the highest rises at 40 per cent by 2020.

UN body, FAO, added that in the short-term food volatility would remain high.

FAO director general Jacques Diouf said: “Governments should implement measures to ensure that farmers have better tools to manage future risks, such as production contracts, insurance schemes and futures markets.”

Developing countries were also anticipated to contribute more in policy discussions as their market share increased.