Global population growth, the main driver of demand increases, is declining, while income growth in emerging economies is projected to be weaker, say OECD and FAO
London: Food prices will stagnate over the next decade as the population growth rate declines and income expansion in emerging economies slows.
Food costs will stabilize at a level slightly higher than in the years before the 2007-08 price spike, the Organization for Economic Cooperation and Development and the United Nations’ Food & Agriculture Organization said in a joint report. Population growth, the main driver of food prices, will slow to 1% annually through 2025, the organizations said.
Global food costs more than doubled since 2000 as population expanded and rising incomes meant more demand for meat, which usually costs more than grains and oilseeds, FAO data showed. Costs reached a record in 2011, prompting Cargill Inc., one of the world’s largest crop traders, to call the end of an era of falling agricultural commodity prices.
“Global population growth, the main driver of demand increases, is declining, while income growth in emerging economies is projected to be weaker,” the OECD and FAO said. “At the same time, consumers, especially in populous emerging economies, show a declining propensity to spend income gains on consuming more basic foodstuffs.”
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