Business School

It adds the bulletin, that the present ascent of prices must to one perfect storm, as it denominates Coast, derived by diverse factors that have caused this ascent: low Productions by climatic subjects and natural causes, basically in Australia; by the incorporation of the Chinese and Indian market to consumption habits that require a more massive cereal use; the cereal use for biocombustibles; the increase of raw materials as the fertilizers by the increase of the price of petroleum; an accumulated reduction of dedicated lands a cultures in the last few decades and, additionally, an effect speculation: of hedge funds investing in raw materials, of some countries of the East, and the distribution speculating on future increases, enumerates Coast. In the same line is Rafael Pampilln, professor of Economy of the IE Business School: the ascent of prices has generated it the subsidy to the ethanol and the biocombustibles, that have generated a perverse effect when being scarce the foods. Also it is necessary to consider, that the high prices of petroleum affect the last agricultural techniques, that depend more and more on the energy. Due to under growth of the provision and the fort increase of the demand, the cereal reserves are in their lower level since the beginning of the eighty. Coast says that the natural and demographic effects are modifying the relations with the nature, and the relation with foods will be one of the effects. I believe that the prices will minimumly become stabilized in a level somewhat superior, although with forts oscillations in that level for reasons of speculation. On the other hand, Pampilln recognizes that the prices will stay stops that while is continued subsidizing the biocombustibles, the world-wide economy continues being relatively strong and while the countries we developed we prefer one more a cheaper energy, although to use agrarian products it increases in price foods, mainly, for poorest.