08.17.12, 10:19–Grim predictions: The prices of basic food products are expected to rise significantly by the end of the year, with prices of dairy products soaring by 6-13%, eggs prices increasing by 8-17% and poultry being subjected to 6-14% price hikes.
The data were published by the Center for International Agricultural Development Cooperation (CINADCO) of the Agriculture Ministry, taking into account drought conditions and rising commodity prices around the world.
In accordance with impending increases of VAT and subsidized bread prices, it seems that 2013 will be difficult in terms of food costs.
The CINADCO report reviews the rising prices of corn, soy and sorghum, which are key components in animal and human nutrition. Due to droughts in the midwestern US, France, Russia, Ukraine, Kazakhstan and India, most commodities are becoming more expensive.
But not only droughts are to blame. According to economist Eran Shavit, who compiled the report, goods are now more expensive primarily due to speculators playing with commodity market prices.
“There was a 60% commodity price increase within six weeks,” Shavit told Ynet. “All parameters indicated that inventories weren’t that scarce. Speculation is all over the market.”…Read More>>