Return of inflation in food business?

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An improving global economy could help food, restaurant and beverage companies start to sell more sodas, sandwiches and suds.

But it could also bring back some of the issues from a couple of years ago, including higher commodity prices, greater demand in developing countries that pulls on finite supply of crops, and a rekindling of the debate over whether crops should be used for food or for energy.

Those are likely to be key topics as food and beverage executives and farm industry experts attend the Reuters Food and Agriculture Summit in Chicago and Asia, March 15-18, with representatives from agribusiness giant Cargill Inc, brewer Molson Coors Brewing Co and fertilizer maker CF Industries Holdings Inc among those participating.

"They'll probably be talking about the world food need issue, primarily from India and China, and of course the overall economy and what that could mean for demand here in the United States," said Rich Nelson, analyst with Allendale Inc.

After a run to record highs in 2008, the worst economic slump in decades kept a lid on grain prices last year. But a healthier economic picture was expected to reignite demand in 2010.

US farmers harvested record-large corn and soybean crops in 2009 and South American farmers are currently harvesting their largest-ever soybean crop and a near-record corn crop.

Wheat production in the United States and several other major suppliers was expected to decline this year following huge crops in each of the past two years.

Biofuels like corn-based ethanol and biodiesel made from soybean oil will also be in the spotlight in 2010, as producers await key decisions on higher ethanol blend rates and tax credit extensions needed to keep biofuels competitive with fossil fuels.