MercoPress. South Atlantic News Agency

Latinamerica food prices remain 25% higher than two years ago says FAO

FAO forecasts the world’s second largest cereal crop ever in 2009

Domestic food prices in developing countries, particularly Latinamerica remain high despite a sharp decline in international prices and overall good cereal harvests, FAO warned on Thursday in its latest Crop Prospects and Food Situation report.

In several countries, prices exceed the already high levels of a year ago or are still at record levels, creating hardship for millions of people.

In Asia and Latinamerica and the Caribbean prices are monitored in a total of 31 countries, and between 40 and 80% of these remain more than 25% higher than in the pre food-crisis period of two years ago, according to FAO data.

“The high food price situation continues to give rise to concern for the food security of vulnerable populations in both urban and rural areas, as these groups spend a large share of their incomes on food,” FAO said.

The outlook for world cereal supply and demand is satisfactory, despite an estimated 3% decline in world cereal production in 2009 from the 2008 record level, FAO said.

World cereal production in 2009 is forecast at 2 208 million tonnes, 3.4% down from last year's record harvest, but nonetheless the second largest crop ever.

Reductions are forecast for wheat and coarse grains.

In Low-Income Food-Deficit countries, prospects for 2009 cereal crops are generally favourable and aggregate production is forecast to increase for the second consecutive year. However, the outlook is uncertain in parts of Western and Eastern Africa as well as in Asia reflecting an erratic start of the rainy season.

Despite a positive outlook for global cereal supplies, 30 countries around the world are in crisis and require assistance as a result of natural disasters, conflict or insecurity, and economic problems.

A World Food Summit is to be held at FAO Headquarters in Rome from 16-18 November with the aim of securing a broad consensus on the eradication of hunger, on improved governance of the international agricultural system and on policies and programmes to ensure world food security.