June 2, 2008

EU corn prices to skyrocket by 30 percent

EU's corn prices are expected to accelerate by 30 percent in 2013 due to soaring demand, a new study by economists at Berlin's Humbolt University, indicates.

Wheat prices in the EU are also forecast to rise by a further 10 percent.

Report author Harald von Witzke said that consumers have to get used to prices going up and fluctuating more often than in the past.

Furthermore, the study predicts that demand for grains in the EU will increase by 10-20 percent in the next five years, while demand for oilseeds will grow by more than 50 percent.

EU supply of wheat and other grains will increase by less than 10 percent, with corn 15-20 percent and oilseeds up 30 percent.

Von Witzke noted that the supply-demand imbalance will fuel the increase in grain and oilseed prices.

He added that the expansion of organic farming contributes to a decline in supply, as it is land-intensive.