FAO Assistant Director-General for Economic and Social Development, Hafez Ghanem said that food commodities markets will remain more volatile in years ahead and the international community will need to develop appropriate ways of dealing with that.

Responding to questions concerning the current turbulence on international food markets, Hafez Ghanem said the G20 could take the lead in devising measures to ensure greater market stability over the medium and long term.

In an interview published on the FAO homepage, Ghanem was asked whether the world was headed for a repeat of the 2007-2008 World Food Crisis. His reply: “The market fundamentals are sound and very different from 2007-2008. Despite the shortfall in Russia’s wheat production, this year’s cereal harvest was the third highest on record and stocks are high. Under these conditions we don’t believe that we are headed for a new food crisis, but we will continue monitoring the situation closely.”

Commenting on Russia’s export ban on wheat, which was recently extended to 2011, Hafez Ghanem said that as a general rule export bans are to be avoided as they create market instability. They increase food prices for poor importing countries while also hurting producers in the country imposing the ban since they are not able to benefit from higher international prices.

As regards the overall supply and demand situation, Hafez Ghanem said there is no cause to worry. “The picture could, however, change if there is another shock to supply, for example due to more bad weather, or if government policies lead to increased anxiety in the market, provoking panic,” he said.

Hafez Ghanem added that the key to long-term food security lies in investing in the agricultural sector in developing countries so they can produce the extra food needed for a world population expected to reach more than 9 billion in 2050.