Higher food prices to hit Norway / News / The Foreigner

Higher food prices to hit Norway. Shoppers may have to pay more for their food in the near future. Several experts forecast higher commodity prices for years to come. Part of the reason is more wealthy people in rapidly developing, and highly populated countries are eating more meat and corn products, according to a new research report “The Coming Surge in Food Prices” from Japanese global investment bank Nomura. “Even with lackluster growth in advanced economies, another multiyear surge in food prices is likely given rapidly growing demand for food in the developing world, constraints and uncertainties surrounding food supply, and the development of increasingly powerful feedback loops,” the bank’s economists, strategists, and equity analysts predict.

commodity, food, prices, harlem, importers, norgesgruppen, world, food, crisis, bric, countries, japanese, investment, bank, nomura



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Higher food prices to hit Norway

Published on Tuesday, 12th October, 2010 at 16:37 under the news category, by Michael Sandelson   .

Shoppers may have to pay more for their food in the near future. Several experts forecast higher commodity prices for years to come.

Cornfield in Lichenstein (illus. photo)
Cornfield in Lichenstein (illus. photo)
Photo: Paranoid/Wikimedia Commons


Volatile

Part of the reason is more wealthy people in rapidly developing, and highly populated countries are eating more meat and corn products, according to a new research report “The Coming Surge in Food Prices” from Japanese global investment bank Nomura.

“Even with lackluster growth in advanced economies, another multiyear surge in food prices is likely given rapidly growing demand for food in the developing world, constraints and uncertainties surrounding food supply, and the development of increasingly powerful feedback loops,” the bank’s economists, strategists, and equity analysts predict.

Managing Director Christian Harlem in Harlem Food Importers tells Dagens Næringsliv commodity prices have risen, and believes a significant increase is on its way.

“There is just as much fuelling the fire now as there was in 2007, when commodity prices reached record levels,” he says.

His firm imports approximately 200,000 tons of sugar, cocoa, nuts, and juice per year. Sugar and corn prices are almost at their highest for two years.

Extreme

Harlem points to five factors he believes contribute to what is feared to be a new world food crisis: extreme growth in the BRIC countries (Brasil, Russia, India, and China), the world uses increasing amounts of commodities to produce biofuels, floods in Asia and droughts in Brazil, rumours the US is about to increase stimulating its economy, and speculators.

Per Roskifte, Executive Vice-President for HR and Public Relations in food retailer and wholesaler NorgesGruppen, believes the Norwegian economy will not necessarily be badly hit, but is on alert.

“We are following commodity prices much more closely than we did one year ago,” he says.

Meanwhile, Christopher Harlem believes shoppers will feel the effects of wheat, sugar, coffee, and cocoa price increases in approximately 6-12 months.

“Norwegian food will cost considerably more in a year if commodity prices remain at current levels or increase. We are lined up for a perfect storm.”



Published on Tuesday, 12th October, 2010 at 16:37 under the news category, by Michael Sandelson   .

This post has the following tags: commodity, food, prices, harlem, importers, norgesgruppen, world, food, crisis, bric, countries, japanese, investment, bank, nomura.





  
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