World food prices could hit all-time high ‘within a year’ due to US drought

The worst drought experienced in the US since 1936, combined with similar water shortages in Russia and South America, is expected to push global food prices to all-time highs in 2013.  Analysts for Rabobank estimate that by June 2013, the basket of food prices tracked by the United Nations could by 15% more expensive than it is today.

This represents another example of water scarcity having a significant on the daily lives of millions.  With no end in sight, this is driving farmers, food processors, and other heavy users of water to look for more water-efficient processes.  This is a driving factor behind one of XPV’s five main areas of focus – demand destruction – whereby we look to invest in companies that have developed processes that reduce water consumption without having a negative impact on the end product.