Rabobank: Lower Oil Prices Contributing To Lower Food Prices
The recent and dramatic oil price drop, and Rabobank's view that oil prices will remain low through 2015, will have implications for the global food supply chain. The economics of some specific F&A sectors will materially change, affecting volumes and margins. Lower oil prices will also add to the already significant deflationary pressure on food prices resulting from lower commodity and feed costs. While lower food prices will be welcomed by consumers, they will not affect consumption levels greatly, considering the relatively low price and income elasticity of food and beverages. …
