Consumers all over the world can expect to pay more for food in coming years.
The Economic Research Service of the U.S. Department of Agriculture expects prices to rise another 4 percent this year. If the projected increase for 2008 proves true, consumers will see the highest increase in food prices since 1990.
With commodity prices hitting record levels and energy costs increasing, retailers must make up for the difference in the form of higher food costs.
MU Agricultural Economics professor Joe Parcell credits several factors for the rise in food prices: exports, feed use, biofuels.
Parcell blames the weak dollar and exports that are driven by a strong global economy.
“The weak dollar is causing $4 a bushel of corn to look as cheap, for foreign buyers, as $2.50 a bushel of corn from a few years ago,” he said. “I don’t think anyone could have guessed that exports would be so strong.”
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