World Food Prices Will Reach Record Highs in 2013 Rabobank Predicts

Sep 20, 2012

Rabobank Report Projects on World Food Prices

Rising food prices and commodity prices for livestock feed have been common speculations with the severe drought in the U.S. Rabobank released a new report predicting that all of these speculations will most likely be true. The report entitled “Re-entering Agflation,” says that Rabo’s AgriFinance division expects world food prices to reach record highs in 2013 and that these prices will put pressure on the livestock industry. While, the North American media has been paying a lot of attention to the drought in the U.S. there have also been water scarcities in South America and Russia which also drive up agricultural commodity prices.

The prediction is bad news for livestock farmers who will feel the pinch of higher feed costs and industries such as cattle will be largely impacted, especially if culling and liquidation becomes common place, which will surely impact the long production cycles and make it difficult to replenish. Meat products will be more affected by the squeeze compared to beverages and value-added industries as the input costs of grains and oilseeds only represent a small fraction of their overall production costs.

The report also notes that increased agriculture protectionism measures may become common place with governments attempting to protect domestic consumers from rising food prices. Governments may try to stockpile or set export bands at the end of 2012 or the beginning of 2013. The report also cautions that these types of government measures may be counterproductive and in fact might even escalate the commodity and food prices.

Video: Dicamba Returns for Georgia Farmers: What the New EPA Ruling Means for Cotton Growers

After being unavailable in 2024 due to registration issues, dicamba products are returning for Georgia farmers this growing season — but under strict new conditions.

In this report from Tifton, Extension Weed Specialist Stanley Culpepper explains the updated EPA ruling, including new application limits, mandatory training requirements, and the need for a restricted use pesticide license. Among the key changes: a cap of two ½-pound applications per year and the required use of an approved volatility reduction agent with every application.

For Georgia cotton producers, the ruling is significant. According to Taylor Sills with the Georgia Cotton Commission, the vast majority of cotton planted in the state carries the dicamba-tolerant trait — meaning farmers had been paying for technology they couldn’t use.

While environmental groups have expressed concerns over spray drift, Georgia growers have reduced off-target pesticide movement by more than 91% over the past decade. Still, this two-year registration period will come with increased scrutiny, making stewardship and compliance more important than ever.