FAO: Food Prices Up Despite High ProductionMay 23, 2008
Food Outlook, a publication of the Food and Agriculture Organization (FAO), says that high food prices have hit many poor countries that are now spending a substantial portion of their income on food. FAO calls this “a worrying development,” and that by the end of 2008, food costs in these countries will have increased four times as 2000 figures. Ironically, FAO’s latest forecast for world cereal in 2008 is a record output, up to 3.8 percent from 2007. Tight markets are expected to lead to continued price volatility during the season.
“Food is no longer the cheap commodity that it once was. Rising food prices are bound to worsen the already unacceptable level of food deprivation suffered by 854 million people,” said FAO Assistant Director-General Hafez Ghanem . “We are facing the risk that the number of hungry will increase by many more millions of people.”
View FAO's press release at http://www.fao.org/newsroom/en/news/2008/1000845/index.html