Fuel is just one factor in the commodity boom that is expected to continue due to income and population growth, freer trade and globalization, and resource scarcity, according to a Rabobank report, “The Boom Beyond Commodities.”
“While biofuels will be responsible for a significant share of added demand for commodities in the coming years, food will remain by far the primary consumer,” said Rabobank Food & Agribusiness Research and Advisory (FAR) Vice President Michael Whitehead.
According to the report, demand for the ‘4 Fs’ – food, fuel, feed and fiber – is set to continue to increase worldwide. The combined effects of this increased demand are pressuring agriculture to operate more efficiently, which has led to more investment in the industry. Additionally, transportation networks around the world are being improved and countries with extensive natural resources that were previously relatively inaccessible are now far more accessible. This will further boost investment in agriculture and increase the value of inputs, particularly in South America, Eastern Europe and Southeast Asia.
