Rising food prices to hit poor countries

The United Nations’ Food and Agricultural Organisation warned in its biannual Food Outlook report that high and volatile prices of grains such as wheat and maize could curtail procurement in many countries. Given the firmness of the food prices in the international markets, the situation could deteriorate further in the next couple of months leading to reduction in imports and consumption in many low-income food-deficit countries. The world’s food import bill will rise in 2007 to $745 billion, up 21% from the last year. Developing countries’ food bill will increase by 25.5% to almost $233, billion according to FAO estimates. The annual food expenditures for the most vulnerable countries have more than doubled since 2000.
Food prices are rising on strong demand from developing countries; rising global population; bio fuel industries high demand for grains and more frequent floods and draughts caused by climate changes due to green house effect. Wheat prices reached an all time high of $9.61 ¾ a bushel amid supply shortfalls due to severe draught in Australia in late September. The Baltic Dry Index surged an all time high of 11,033 in October about 150 % up from January. Dairy products registered the largest increase of about 65 % compared to 40% of grains and vegetable oil. Meat prices rose by 6%. Sugar cost declined by 35%.