Nestlé chief fears “significant and long-lasting” food price inflation

[TexasLawyer]

Nestlé chief fears food price inflation

By Geoff Dyer in Beijing

Published: July 5 2007 22:02

Food prices are set for a period of “significant and long-lasting” inflation because of demand from China and India and the use of crops for biofuels, according to the head of Nestlé .

Peter Brabeck, chairman of the world’s largest food company, said rises in food prices reflected not only temporary factors but also long-term and structural changes in supply and demand.

“They will have a long-lasting impact on food prices,” he told the Financial Times during a visit 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.

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http://www.ft.com/cms/s/3a674134-2b1c-11dc-85f9-000b5df10621.html

[fed-up]

1. "20 and 50 per cent over the next decade"-they've ALREADY gone UP at least 20% last few years...nt

[aquart]

2. I bet he thinks he knows where his next meal is coming from.

[MichaelHarris]

3. how many MPG

do you get from a Nestle Crunch bar anyway?

[Robbien]

4. No mention at all about the fall of the dollar

If one really wants to know why prices are so high, look at what a dollar doesn't buy in foreign goods these days and remember that almost 60% of our foodstuffs are foreign goods.