Nestle Chairman Warns of Food Price Inflation
Several food companies have warned about the short-term outlook for prices, but Mr Brabeck’s comments are among the starkest warnings that a long period of rising food prices could stoke broader inflationary pressures.
06/07/07 Nestle's chairman Peter Brabeck has said that food prices around the world are set for a 'significant and long-lasting' period of inflation because of a variety of factors, including demand from China and India.
The use of crops for biofuels and general population growth would also continue pushing food prices higher, Brabeck said, in an interview with the Financial Times, while on a trip to China.
Several food companies have warned about the short-term outlook for prices, but Mr Brabeck’s comments are among the starkest warnings that a long period of rising food prices could stoke broader inflationary pressures.
Brabeck said Nestlé had first forecast higher food prices two years ago and price pressure had become apparent last year.
According to the FT, corn prices have risen about 60 pct in the past year, and wheat prices have gained about 50 pct in that time, while sugar, milk and cocoa prices have also increased. Reports from two international organisations this week forecast food price rises of between 20 and 50 per cent over the next decade.
