Boom time for agricultural markets

AGRICULTURAL markets internationally are entering a boom era for commodity prices, according to the European Commission.

It says this boom is partly caused by drought last year, partly by the unprecedented demand for biofuel and by global economic growth, which is driving demand for higher valued food products.

“The outlook is for prices to stay high, and the ‘food versus fuel’ discussion will continue,” according to the newsletter Monitoring Agri-trade Policy, which is published by the commission’s directorate-general for agriculture and rural development. However, it said outlook is subject to uncertainties including the further development of biofuels, policy changes and the weather.