Which is good news if you live in less developed areas of the world, where your quality of living, starting with more luxurious food, is about to get more plentiful, or even more affordable. Not so good for those living in more developed parts, where costs will get pushed up simply because demand is higher and supply is most likely going to remain flat.
“As incomes rise, diets are expected to slowly diversify away from staple foods towards increased meats and processed foods,” it said. In turn, with increasing affluence and an expanding middle class, food consumption in developing countries would become less responsive to price and income changes.
In real terms, the report projected cereal prices to rise around 15-40 per cent relative to the 1997-2006 average, up from last year’s forecast of 10-20 per cent. Vegetable oils are expected to be more than 40 per cent higher, against last year’s forecast of a 30 per cent increase. Meat and dairy products will also be more expensive in the next decade, reversing last year’s forecast that pointed to lower prices.
This article blames mostly higher crude oil prices for the uncomfortable news. But the increasing tension between the developing and developed, and between the young and the old, will probably be the trend in the foreseeable future.