The recent dramatic drop in the price of oil will have implications for the global food supply chain, contributing to lower food prices if the cost of oil remains low throughout the year, according to Rabobank.
In a new report, Rabobank predicts the decreasing cost of oil will add to the deflationary pressure on food prices resulting from lower commodity and feed costs. The bank says consumers will likely welcome the decrease, but it is unlikely consumption levels will be affected.