FAO: World Food Prices Set to Remain High
New York--High and volatile agricultural commodity prices are likely to prevail for the rest of this year and into 2012, according to the latest analysis published Tuesday in the United Nations Food and Agriculture Organization’s biannual Food Outlook.
The report cites a sharp rundown on inventories and only modest overall production increases for the majority of crops as reasons for continuing strong prices.
The next few months will be critical in determining how the major crops will fare this year, the report noted. Although prospects are encouraging in some countries such as the Russian Federation and Ukraine, weather conditions, featuring too little and in some cases too much rain, could hamper corn and wheat yields in Europe and North America.
“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,” said David Hallam, director of FAO’s Markets and Trade Division.