Global food prices, which have surged in the past six months, are predicted to continue rising in 2021.
The rising prices of agricultural commodities are being fuelled by strong global demand, adverse weather conditions in some countries and low interest rates, according to a new report by Rabobank.
The report - titled Food Price Surge is Unlikely to Revert - comes after prices at the latest Global Dairy Trade auction last week jumped a staggering 15 percent, with prices for whole milk powder - the most important commodity for Kiwi farmers - up 21 percent.
Global agricultural commodity prices have risen almost 50 percent since mid-2020, something that is "causing concern over food price inflation around the world" at a time when "importing countries want to import more", according to the report.
Experts attributed last week's dairy auction price increase to "aggressive purchasing" by Chinese buyers, as the availability of dairy products in the country fails to keep up with demand.
According to the Rabobank report, the threat of COVID-19-related disruptions to supply chains meant many countries - including China - were attempting to accumulate stock.
The report concluded high Chinese imports would "likely continue for years to come" due to the country's strongly growing economy.