High Food Prices Seen by Olam CEO as Result of Population Growth
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Food prices that doubled in the past 10 years are more the result of population growth and increased demand for protein-based diets than any cyclical reasons, according to Sunny Verghese, chief executive officer at Olam International Ltd., the Singapore-based commodities trader.
Three of the biggest annual gains in food prices in the past 20 years occurred since 2007, with the United Nations Food & Agriculture Organization’s global food price index climbing to a record in 2010. Wheat and soybeans led commodities gains last year and corn jumped to a record in August.