FACTBOX: Spiraling food prices on G8 summit agenda

(Reuters) - Leaders of the Group of Eight industrial nations meet in Japan on July 7-9 amid concerns about Spiraling food costs around the globe.

Up to 105 million people could become poor due to rising food prices, the World Bank estimates, with forecasters warning prices will remain high for some years.

Here are some key facts about the issue:

WHY ARE FOOD PRICES RISING?

-- Factors behind the surge in prices include high energy and fertilizer prices, a declining U.S. dollar, drought in big producing countries including Australia, rising demand from fast-growing economies such as China and India, high oil prices that have pushed up production costs, and dwindling stocks.

-- Rising investment inflows in food commodity futures markets and hedge fund activity have hiked prices further.

-- Experts have also blamed a big push in biofuels programs that has diverted land and crops from food production.

-- Export restrictions imposed by countries including India and China on rice, and by Argentina, Kazakhstan and Russia on wheat, have cut international supplies.

-- Actions by large rice importers, such as the Philippines, in floating large tenders to obtain needed rice imports, have boosted prices.

FORECASTS:

-- Production is increasing but so is demand. The U.N.'s Food and Agriculture Organization (FAO) has forecast total grain stocks will sink to a 25-year low by the end of this year.

-- Forecasts by the U.S. Department of Agriculture (USDA) and OECD-FAO say prices will remain high in 2008. The Agricultural Outlook 2008-2017 by the OECD-FAO shows this upward trend:

(Average nominal commodity prices over 2008-2017 vs 1998-2007)

- Up 20 percent for beef and pork.

- Up 30 percent for sugar.

- Up 30 percent for rice.