Unformatted text preview: f the r eport. In
especially the U.S. and Europe
re meat and corn prices elasticity is low, the knock-off effe
ct of high grain prices will be felt for some time to come.
Chandler notes that the impact of higher grain and oilseed
prices will be significant for the livestock sector as it is lik
ely to be squeezed by higher feed costs. The long producti
on cycles of livestock, notably cattle, will keep pressure on
rising food prices as herds take the time to rebuild. The fu
ll effect of this commodity price rally and the subsequent l
ower meat and milk output, will be a multiyear rebuilding of
herds, which will keep price levels high.
Meanwhile, beverages and value-added product sectors will
be less affected as grains and oilseeds constitute a smaller
part of the overall production costs. The report estimates t
hat the Food and Agric ultural Organization Food Pric e Inde
x will rise by 15% by the end of June 2013. Rabobank expe
particularly for grains and oilseeds
at high levels for at least the n...
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- Spring '10
- Maize, food prices, 2007–2008 world food price crisis