World food prices may remain high next year: FAO

June 8th, 2011 - 10:50 pm ICT by IANS  

Geneva, June 8 (IANS/WAM) The world food prices are likely to remain high for the rest of this year and into 2012, said a UN report Wednesday, citing dwindling stocks and only small production increases for the majority of crops.

According to the biannual Food Outlook published by the UN Food and Agriculture Organisation (FAO), the next few months will be critical in determining how the major crops will fare this year, the Rome-based agency said in a release.

“The general situation for agricultural crops and food commodities is tight with world prices at stubbornly high levels, posing a threat to many low-income food deficit countries,” David Hallam, director of FAO’s markets and trade division, stated.

FAO’s monthly food price index showed that global food prices, which earlier this year soared to levels seen during the 2007-08 food crisis, dropped by one per cent in May.

Declines in the prices of cereals and sugar were responsible for the slight decrease in the May index, says FAO, adding that this offset increases in meat and dairy prices.

–IANS/WAM
sd/vt

Related Stories

Tags: , , , , , , , , , , , , , , , ,

Posted in Business |

Subscribe