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Food Prices To Rise For Years, Biofuel Firms Say
UK: April 4, 2008
LONDON – Staple food prices will rise for some years, but should eventually fall to historical averages as harvests increase, biofuel company executives said on Thursday.
Soaring demand for better quality food from rapidly industrialising emerging markets such as China, supply shortages, increased demand for biofuels, and a surging appetite for food commodities by investment funds, have combined to push prices of basic foods higher and higher in recent months.
Stephane Delodder, managing partner of Netherlands-based consultancy iFuel Corporate Advisory, told a conference the problem of rising food prices would persist for some years.
Market forces should eventually help rebalance supply and demand, especially in markets which are not highly regulated, but this could take some time.