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Rising wheat prices sparks food inflation fears
3 Sep 2010Wheat prices surged for a second consecutive day, raising fears of inflation for everything from the price of bread to meat.
Today's 1.4% wheat increase follows a hike of 2% yesterday when Russia announced it was extending an export ban into next year because of a drought.
Meat prices are also touching a 20-year high because livestock graze on wheat-based grains.
Abdolreza Abbassian, economist at the United Nations' Food and Agriculture Organisation, said: "It is true that Russia is thinking about extending the embargo but it still does not mean that we are going to have a crisis [as in 2008]."
Russia, responsible for around 14% of global wheat production, revealed the ban for this year a month ago, pushing wheat to a two-year high of $8.68 a bushel. It was trading today at $7.23.
The average price of a loaf in Britain has almost doubled in five years to £1.19.
Reader views (2)
"Soon there will be a call for GM crops to combat starvation". Bobby, if you so loathe GM mods, you are way late. Suggest you look into how Brazil managed to challenge the big five food exporters. Brazil's success in feeding itself (and gaining share on international markets) was to a great extend built on improving (GM) grasses from Africa and cattle from India. What's more, same approach is likelier to work in poorer countries of Asia and Africa. Which means that the more we believe in the nice but not so practical "small, organic, beautiful" model of farming, the more we will have to subsidise our farmers. Problem is, we ain't got no money.
- Legal Immigrant, City of London, 03/09/2010 13:03
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Soon there will be a call for GM crops to combat starvation.
Monsanto shareholders must be rubbing their hands together in expectation.
I hope it doesn't come to this as once the genie is out of the bottle there is no return.
- bobby, berks, 03/09/2010 12:37
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