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Raising Food Price Spikes Investment on Agriculture
added: 2008-09-25

Latest news from tootoo.com on food price and global investment in agriculture reports that representatives in the world food organizations pointed out at the world agriculture investment conference on July 9 that, "Raising food price will bring a new wave of investment in agriculture, mainly in east Europe, African countries, and Brazil which has vast virgin ground."

Around the world people has been feeling the pressure of raising food prices especially during the last couple of months, some even feel that a food crisis is around the corner. Raising prices in some food commodities, for instance cereals, rice, livestock and dairy products, can be characterized as global diverse factors, in terms of temporary and structural.

The diet revolution and food demand from new developing countries contribute to the rise in global food price. Apparently, food demand stimulated all kinds of investment in the agriculture field, in terms of purchasing farm and fertilizer.

Some expert on the conference implied, that the world's farming industry will face a period of uncertainty for at least 10 years over how far supply and demand can be balanced. A working paper discussed by EU agriculture ministers at an informal meeting recently suggested that the uncertainty about how much food to produce in order to meet spiking demands will be the main issue.

Other uncertain factors surrounding the industry include unpredictable weather changes in key producer countries, structural changes in European countries and eating habits in countries like China, Brazil and India.

Agricultural representatives also call in major producer countries like China, Brazil and the United States to contribute more efforts on stabilizing food price, and China and India as major consuming areas should pay attention to investment on agriculture, which would bring huge opportunities.


Source: PR Newswire

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