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World Food at Record High Prices

Enjoy "cheap" food prices now, because they are going to rise and stay high long into the future. The world population is increasing and developing countries are developing Western tastes. Meat demand is increasing, particularly beef.

When drought hits, like in Russia, the US, Ukraine and Kazakhstan at present, high demand pushes food prices up. Farmers reap the benefit. South Australian farmers are getting 30 per cent more for grain. Though Australia relies on the export of minerals for income, it is hoped that this country will be one of the world's future food baskets. Everyone concentrates on the mineral industry. Note that SA's agricultural income rose by at third from 2009-10 to 2010-11. This is a result of food being at record high prices over the last two months.

When the US cannot supply Australia jumps in as provider. This has always been the case. The reverse is also true. Another factor in rising prices is that local consumers are moving to chicken as other meat is too expensive. There has been an incredible rise in poultry production since 2004, from 10.5 tonnes to 66.25 tonnes.

Despite high prices for pork, demand remains solid, Lamb is no longer an Australian staple. This is due to lambs being bred mainly for wool, so the meat tends to have more fat than that produced in say New Zealand or Britain. Diligent farmers are no longer producing sheep. They have moved to vegetable production such as tomatoes and mushrooms.
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