Agribusiness banking specialist Rabobank is forecasting food prices will hit record highs in Australia and New Zealand next year due to another round of what it calls “agflation”.
This, it says, will mean higher livestock feed costs for farmers while exporters will face tougher import controls, especially from emerging markets within Asia.
Rabobank's latest market research report says the increasing prices are being driven by a drought in the United States, and this is stifling grain production.
Unlike the staple grain shortage of 2008, this year's scarcity will affect feed-intensive crops with serious repercussions for the animal protein and dairy industries.
Luke Chandler, global head of agri commodity markets research at Rabobank, said: "The impact on the poorest consumers should be reduced this time around, as purchasers are able to switch consumption from animal protein back towards staple grains like rice and wheat.
