Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

Nestle boss worried by volatile food prices

DAVOS, Jan 26, 2011 – The head of Swiss food giant Nestle said Wednesday he was concerned about the recent volatility of food prices, although he dismissed the possibility of a crisis.

Speaking on the sidelines of the annual meeting of the World Economic Forum, Paul Bulcke told AFP: "The underlining trend is upward, which is not bad. It incentivises … agriculture."

"But we\’ll have to work on the volatility, which is not good," he added.

A recent spike in commodity prices has raised the spectre of social and political turmoil amid riots in Algeria over rising costs.

In its most recent forecast, the International Monetary Fund cited high food prices as a major downside risk to the global economy.

And at a meeting of agriculture ministers from Europe, Africa and Canada, officials warned of riots and unrest unless swift action is taken to improve security and battle rising food prices.

French President Nicolas Sarkozy has placed the issue on the agenda for his country\’s presidency of the G20.

Abdolreza Abbassian, an economist at the UN\’s Food and Agriculture Organisation (FAO), told AFP earlier this month that surging prices for cooking oil, cereal and sugar in particular, "will affect millions of people."

And the issue is emerging as one of the dominant themes at the Davos gathering of political and business elites.

Advertisement. Scroll to continue reading.

"The rise in food prices is becoming a serious political and social problem," New York University professor Nouriel Roubini told the opening panel earlier Wednesday.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...