21 Sep 2012

Rabobank predicts food prices will soar in 2013

1:53 pm on 21 September 2012

The agribusiness banking specialist, Rabobank, is forecasting food prices will hit record highs in 2013 due to another round of what it calls agflation.

It says for New Zealand farmers that will mean higher livestock feed costs and for exporters tougher import controls, especially from emerging markets such as Asia.

Rabobank's latest market research report says the increasing prices are driven by a drought in the United States, which is stifling grain production.

Senior analyst Hayley Moynihan says imminent and significant stock feed increases are expected to hit several primary sectors.