Dairy product prices set to soar, says EC
International agricultural markets are entering a boom era for commodity prices, according to the Commission’s Monitoring Agri-trade Policy newsletter.
This boom is due to last year’s drought, unprecedented demand for biofuel, and global economic growth.
The outlook is for prices to stay high, say the Eurocrats, but they warn of many uncertainties — biofuel trends, the WTO outcome, and the weather.
The Commission forecasts that farmers will respond to higher grain prices by increasing production in 2007 and 2008.
But vegetable oil prices should increase by about 50% over the next ten years.
US estimates quoted by the Commission also predict world poultry prices will rise by 12% to 14%.
World beef prices are predicted to stay at their current relatively high level, which is 14% above the average of the past decade. By 2015, China is expected to come close to the US and Brazil in terms of beef production.
