Food giant predicts end of massive price hikes
4:00AM Saturday Oct 25, 2008
By Errol Kiong

Food prices are likely to remain high for some time, but the enormous hikes consumers experienced over the past year are probably over, says Australasia's leading food manufacturer, Goodman Fielder.

Managing director and chief executive Peter Margin said that while prices would vary by category, the recent large rises seen in products such as dairy were not likely to occur again in the near future.

"I think that there will probably be some moderation in food inflation.

"In the medium to long-term basis, I think there is an inevitability that food pricing will stay high."

Volatility, however, was likely to remain a feature in the medium term, said Margin, depending on what happened with commodity prices and the valuations for the Australian and New Zealand dollar.

Margin, who was in Auckland for a shareholder information meeting, cited soft oils as an example. While the price had come off by more than 30 per cent in US dollar terms over the past six months, the greenback had also appreciated by about 25 to 30 per cent at the same time.

More here.