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A food policy research group is predicting substantial increases in food prices, arguing that a combination of factors will lead to rising food prices "for the foreseeable future."The International Food Policy Research Institute said a major secular trend -- falling food prices prompted by high-yield grains and technological advancement, among other factors -- is set to end.
IFPRI Director Joachim Braun said climate risk and climate change, rising demand for food in emerging markets, and trade barriers will contribute to higher food prices in the decades ahead. For example, global warming is expected to decrease global agricultural production by 16% by 2020, while China and India and other rapidly-developing markets increase demand for meat and dairy products, increasing the price of those goods, as well as grain.
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