Rabobank Sees Record Food Prices as Grain Costs Spur Meat Exits
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World food prices will exceed the all-time high set last year as droughts in the U.S., South America and Russia push up animal feed costs, spurring meat and dairy farmers to cut herds, Rabobank International said.
Food prices tracked by the United Nations may climb 15 percent by June 2013, surpassing the record set in February 2011, Nick Higgins, an analyst at the bank, said in a report today. Grain and oilseed prices should “remain at elevated levels” for at least the next 12 months to ration demand and encourage crop farmers to boost planting, he said.