Commodity prices to rise in 2008

THE factors that underlined the rise in world commodity prices in the past year are set to continue in 2008, according to the Irish Farmers Association’s chief economist Con Lucey in his annual review and outlook.

He listed these as the growing demand for food, the impact of climate change in reducing food production capacity in some regions of the world, and competition for land from bio-energy production, high oil prices and the environmental objectives of governments.

Mr Lucey said in 2007 farmers’ in dairying and cereals benefited from the strong world commodity prices. However, beef, lamb and pig meat prices have not risen at all, and pig producers in particular have been victims of a price cost squeeze.