Food prices ‘will fall over next decade’

Food prices will fall over the next decade despite increased demand for grain to make fuel, the Swedish Board of Agriculture has predicted. Increased production from countries such as Argentina, Brazil, India, China, Russia and Ukraine will keep prices down, the board predicts.

The board said it expected the price of grain and meat to fall over the next ten years. Wheat prices will fall from 1,400 kronor ($209) per tonne to 1,250 kronor, measured in today’s prices.

“If production increases, competition to sell crops and meat increases and prices can fall,” said Anna Clarin, a researcher at the Swedish Board of Agriculture (Jordbruksverket).

The price of plants used to make oil is expected to increase over the next decade, as is the price of rice, according to the report. Researchers say that the six countries studied have great potential to develop agriculture and increase revenues.

“Their potential is far from exploited – they have large land reserves and in several cases poor infrastructure, which keeps production down,” said Clarin.