A press release yesterday in Canberra from a summit of the major livestock feedgrain producers and federal government officials stated the main factors that are driving grain prices high and are causing food inflation.
The current high grain prices are resulting in serious losses for pork, egg, beef and dairy farmers coupled with job losses within the economy.
International grain stocks are at a current all-time low due to higher grain demand. Countries such as Australia with unfavourable growing seasons and drought are suffering under the current grain shortage.
Additionally, record amounts of grain, which in the past were destined for human and animal consumption, are being deployed to produce bio-fuels. Governments are requested by feedgrain users not to market ethanol because of the effect it has on feed grain prices and the cost of everyday staples.
By 2009, biofuels will use at least 10% of the global grain supply. It is felt that there should be huge public debate on the affects of inflation caused by biofuels from grain.
The Australian feedgrain industry has requested the government to help improve transparency by collecting and releasing monthly grain stocks on a state by state basis.
â€¢ Australian Pork