The rise in commodities prices will be long-term, due to the growing world population and a change in diet from grains to protein in emerging countries, Martin Richenhagen, chairman and CEO of farm equipment producer Agco told CNBC Thursday.
“What are the fundamentals, the growing world population, already 160 people [being born] while we speak every minute,” said Richenhagen. “We have changing diets toward more protein in emerging markets.
“All that together creates in the future, a very strong demand for farmed goods.”
Richenhagen said that countries with a meat-heavy diet need six times more in imports than they do when they eat mostly grains.