Correlation between energy and food prices

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24 Aug 2010
Unit: LEI

The prices of agricultural products and fossil fuels have decreased significantly, after rising to very high levels in 2008. This parallel trend in price levels is due to the fact that the demand in both these markets is strongly dependent upon the overall level of prosperity and affluence. The future relationship between agricultural and energy prices will depend upon the level and timing of the investments made in order to ensure that the supply is better aligned with the changing demand. As these changes will take time, price fluctuations will continue to occur.

These are some of the main points described in the exploratory study 'Links between energy and food markets: a preliminary assessment' carried out by LEI for the Ministry of Agriculture, Nature and Food Quality.

Report 2010-032 Links between energy and food markets: a preliminary assessment

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Huib Silvis
huib.silvis@wur.nl
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