FAO: world prices for food likely to increase

PanARMENIAN.Net - International food import bills could pass the one trillion dollar mark in 2010 with prices in most commodities up sharply from 2009, Food and Agriculture Organization (FAO) of the United Nations said.

In the latest edition of its Food Outlook report, FAO also issued a warning to the international community to prepare for harder times ahead unless production of major food crops increases significantly in 2011.

Food import bills for the world’s poorest countries are predicted to rise 11 percent in 2010 and by 20 percent for low-income food-deficit countries.

This means, by passing a trillion dollars, the global import food bill will likely rise to a level not seen since food prices peaked at record levels in 2008.

“With the pressure on world prices of most commodities not abating, the international community must remain vigilant against further supply shocks in 2011 and be prepared,” FAO said.

Price increases, seen for most agricultural commodities over the past six months, are the result of a combination of factors, especially unexpected supply shortfalls due to unfavorable weather events, policy responses by some of the exporting countries, and fluctuations in currency markets.

International prices could rise even more if production next year does not increase significantly – especially in maize, soybean, and wheat, FAO said in its report.

Even the price of rice – the supply of which according to FAO is more adequate than other cereals – may be affected if prices of other major food crops continue climbing.