Tuesday, October 26, 2010

FAO warns of new food price crisis

Experts from the U.N.'s Food and Agriculture Organization say that another global food crisis could come soon. Food prices have climbed to their highest levels in two years, yet are still not as high as the previous crisis in 2008. The FAO is also pointing to the many recent floods that have swept away crops that have kept food stockpiles low.

From the Guardian, writer John Vidal received more quotes from the FAO and there dire warnings.

Although food stocks are generally good despite much of this year's harvests being wiped out in Pakistan and Russia, sugar and rice remain at a record price.

Global wheat and maize prices recently jumped nearly 30% in a few weeks while meat prices are at 20-year highs, according to the key Reuters-Jefferies commodity price indicator. Last week, the US predicted that global wheat harvests would be 30m tonnes lower than last year, a 5.5% fall. Meanwhile, the price of tomatoes in Egypt, garlic in China and bread in Pakistan are at near-record levels.

"The situation has deteriorated since September," said Abdolreza Abbassian of the UN food and agriculture organisation. "In the last few weeks there have been signs we are heading the same way as in 2008.

"We may not get to the prices of 2008 but this time they could stay high much longer."

However, opinions are sharply divided over whether these prices signal a world food crisis like the one in 2008 that helped cause riots in 25 countries, or simply reflect volatility in global commodity markets as countries claw their way through recession.

"A food crisis on the scale of two or three years ago is not imminent, but the underlying causes [of what happened then] are still there," said Chris Leather, Oxfam's food policy adviser.

"Prices are volatile and there is a lot of nervousness in the market. There are big differences between now and 2008. Harvests are generally better, global food stocks are better."

1 comment:

Anonymous said...

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U.N. a Cosa Nostra

John Vidal