Australian producers are set to benefit from a rise in food prices.
A recent study has warned that the price of food will soar up to 45 per cent by 2020 creating a shortage in staple food.
Shitika Anand reports.
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We saw food prices double in the past decade and now there is another shock.
A panel of experts at a food security forum in Brisbane say the costs for basic commodities will rocket up as the population continues to grow.
But they say this price hike will impact the developing countries in a much greater way.
Nick Austin, CEO of Australian Centre for International Agricultural Research: “About 15 per cent of our disposable income goes on food and you compare that to the developing world where it’s typically 80 per cent of income spent on food.”
Mr Austin says the Australian food export industry holds a vital position in global trade.
Nick Austin, CEO of Australian Centre for International Agricultural Research: “We export 60 per cent of our production so the increase in food prices produces opportunities for our producers. The amount we spend on food.”
The United nations is concerned about the impact of the rocketing food prices on developing nations.
Malcolm Duthie, Director of UN World Food Program: “So many people actually don’t grow enough food to feed themselves and they depend upon getting access to food elsewhere.”
It takes four kilos of grain to produce one kilo of beef, so while the cost of production is increasing for our farmers, so is the price they are getting overseas.
Malcolm Duthie, Director of UN World Food Program: “Like the Australian farmers are able to respond to these increased prices very quickly and they benefit from it.”
The OECD has predicted dairy prices to climb by 45 per cent vegetable oil and grains will shoot up to 40 per cent and wheat will rise 15 per cent in the next 10 years.
Shitika Anand, QUT News.