Shoppers to be hit by food cost hike

SHOPPERS stand to be hit by the sharply rising worldwide wheat harvest prices, according to Odlums milling group yesterday.

An industry source predicted that Irish retail prices of flour-based products will rise by “upwards of 12%”.

Demand for wheat across the world continues to grow while global stocks of the grain are at their lowest in 40 years.

Organisations such as the United Nations cites global population growth alongside growing wealth and a change in food taste as reasons for an increased demand for grain.

In the US, a massive swing towards biofuel is resulting in land normally used for growing wheat being cropped for maize.

The OECD, the international forum for coordinating economic policy, expects grain prices to be 50% higher over the next decade.

Meanwhile consumers were yesterday warned the era of relatively cheap food may be coming to an end.

Ireland East MEP Mairead McGuinness said supply and demand will be far more critical in determining prices into the future.