Increase in World Cereal Production But Prices Still High

The good news is that there is an expected significant increase in world cereal production in 2008. The bad news is that international prices of most cereals remain at high levels and are still on the increase. The Food and Agriculture Organization’s (FAO) Crops Prospects and Food Situation report adds that the increase is due to greater winter grain plantings and favorable weather in Europe and the United States. However, dwindling stocks and strong demand for cereals is causing higher prices.

“High food prices and market uncertainties have become major global concerns, and wide access to up-to-date information and analysis is becoming critical,” said Henri Josserand of FAO’s Global Information and Early Warning system. Hence, FAO has launched a new web portal to address the need for information and facilitate analysis on current developments in world food markets.

View FAO’s press release at http://www.fao.org/newsroom/en/news/2008/1000783/index.html