Food Prices in Developing Countries Remain Very High
Posted by ASCE (admin) on Wednesday, 22nd July, 2009 at 11:32 AM
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Domestic food prices in developing countries remain high despite a sharp decline in international prices and overall good cereal harvests, FAO has warned in its latest Crop Prospects and Food Situation report.

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The report indicated that prices of food items in several countries exceed the already high levels in a year ago or are still at record levels, creating hardship for millions of vulnerable groups around the globe.

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In sub-Saharan Africa, 80 to 90 per cent of all cereal prices monitored by FAO in 27 countries remain more than 25 per cent higher than before the soaring food price crisis two years ago.

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In Asia, Caribbean and Latin America, prices are monitored in a total of 31 countries and between 40 and 80 per cent of these remain more than 25 per cent higher than in the pre food crisis period, according to FAO data.

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???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.

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In Easter Africa, in Sudan, prices of Sorghum in June were three times higher than two years ago. In Uganda, Kenya and Ethiopia prices of maize have doubled compare to two years ago. In Southern Africa, prices of maize have declined especially in Malawi in recent months due to a bumper harvest but remain above the pre-crisis level.

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In Western Africa, prices decreased in late 2008 following good cereal harvests, but increased again in 2009. In Ghana, prices of maize in Sacra have more than doubled since June 2007.

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Among the reasons for high food prices, the report listed reduced harvests, higher or delayed imports, civil conflicts, strong demand in neighbouring countries and regional trade flows, devaluation of national currencies, changes in food and trade policies, increased incomes and demand and transport constraints and higher transport costs.

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The outlook for world cereal supply and demand is satisfactory, despite an estimated 3 per cent 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 tones, 3.4 per cent down from last year???s record harvest, but nonetheless the second largest crop ever.

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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.

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

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A World Food Summit is to be held at FAO Headquarters in Rome from 16 ??“ 18 November, 2009 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.

Source: Page 44, Thisday. Tuesday July 21, 2009.

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