Food prices set to soar after ‘perfect storm’ set of figures released.

[Ponce]

The news is the same from around the world.....the rice that I have has gone up triple in price.
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Food prices set to soar after ‘perfect storm’ set of figures released.

All the ingredients of a 'perfect storm' for food prices are present according to some experts
The British food industry is preparing for a massive jump in food inflation in the wake of soaring animal feed prices, a shortage of silage and poor harvests. These key points could present ‘perfect storm’ conditions for sky-high food prices according to a new report.

Experts predict food prices could be at least ten per cent higher by early next year as cost hikes in animal feed – the first link in the food chain – sent shockwaves through the industry, The Grocer reported.

BOCM Pauls, the UK’s biggest animal feed supplier, reported a 20 per cent increase in the price of raw material feed on last year, following a 30 per cent spike in feed wheat costs. The company warned selling prices to dairy, poultry, beef and pig farmers would have to increase by the same amount over the next three months.

The National Farmers’ Union said the dry weather had added to problems for farmers by decimating yields of silage for winter feed by up to 50 per cent.

Food producers are already reeling from the soaring cost of commodities such as palm oil, cocoa and soya oil, which have leapt 39 per cent, 23 per cent and 14 per cent respectively since last year, according to Mintec figures.

Commodity experts from Russia have also announced that the country’s wheat exports could plummet by almost 50 per cent because of a drought, raising fears of a Russian export ban which would have a significant impact on UK food inflation.

John Devonald, a food market expert said: “All the conditions are set for a perfect storm in food prices. The implications of a much broader range of effects could see extreme results and possibly present economies with a double-dip recession.”

http://www.listandalucia.com/news/news-uk/food-prices-set-to-soar-after-perfect-storm-set-of-figures-released/

[EE_]

Hopefully this won't affect the 'Recovery'

I'm gonna be watching for people with a lot of toilet paper...cuz I know they must have food!

[Ponce]

Hahahahahahahahahahahhahahahahahahah ;D

[MNeagle]

Russia to Ban Grain Exports From Aug. 15 as Drought Cuts Yields

Russia will impose an export ban on grain and grain products from Aug. 15 to Dec. 31 as the country’s worst drought in half a century cuts yields.

Prime Minister Vladimir Putin’s spokesman, Dmitry Peskov, gave the dates of the ban by telephone in Moscow today. Earlier, Putin said a ban would be “appropriate” after drought and record heat in central Russia and along the Volga River forced the government to declare a state of emergency in 28 crop- producing regions.

Wheat extended a rally to the highest price in 23 months on the ban. Wheat for December delivery, the contract with the largest open interest, advanced as much as 7.9 percent to $8.155 a bushel in Chicago today, the highest level since August 2008.

“As of today, Russia has no grain market,” said Kirill Podolsky, chief executive officer of Valars Group, the country’s third-biggest grain trader. “This will be a catastrophe for farmers and exporters alike.”

Russian companies may cancel shipments of about 600,000 metric tons of wheat to Egypt because of the ban, Podolsky said. Valars will stop exports immediately, including a pending 60,000-ton shipment to Egypt, on concerns that customs officers will hold up shipments until the ban comes into effect, he said.

‘Sufficient Reserves’

The Agriculture Ministry cut its grain crop forecast to as low as 70 million metric tons compared with 97.1 million tons last year. Agriculture accounts for about 4 percent of gross domestic product, according to Moscow-based VTB Capital.

Russia has “sufficient reserves” of grain, Putin told a government meeting, “but we must prevent domestic prices from rising, preserve cattle herds and build up reserves for next year.” The government will consider what to do next after December, when this year’s harvest is tallied, he said.

Russian Grain Union President Arkady Zlochevsky earlier said a quick move to halt exports would hurt the market because traders need advance warning in order to meet contracts.

Heat and drought continue to plague Russia’s heartland. Wildfires have killed 50 people to date.

Fires concentrated in central Russia and the Volga River region have scorched 712,412 hectares (2,751 square miles), an area about three times the size of Luxembourg, the Emergency Situations Ministry said in an e-mailed statement today. Crews are battling 589 fires on 195,834 hectares, the ministry said.

Dry and hot weather with “high” and “extreme” fire danger will persist in most areas of European Russia at least through Aug. 7, the state Hydrometeorological Center said on its website today. Fire danger will also be high in the Ural Mountains and the Tomsk region in Siberia, it said. Temperatures broke all-time records in five Russian cities yesterday.

http://www.bloomberg.com/news/2010-08-05/putin-backs-temporary-grain-export-ban-as-russian-drought-cuts-crop-yield.html