03 February 2011

Tough Times Ahead As Food Prices Are Predicted To Soar

The UN Food and Agriculture Organisation has made a statement predicting that food prices will rise to an all time high as supplies of key crops become stretched. In the UK the average shopping bill has increased by 6.1% but this is just a taste of what is to come. One of the underlying problems is the increasing price of corn which is used in animal feed: As the price of feeding livestock goes up so does the cost of meat.

So far British pig farmers have had to bear the brunt of price increases but they are now demanding higher payments from the supermarkets. The National Pig Association warned: ‘Currently there is a shortage of British pork, bacon and sausages. Farmers cannot afford to keep producing it.

It would seem that supermarket prices are unsustainable and they simply have to rise.

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