FAO: Poorest countries’ cereal bill continues to soar
Dated: 15 April 2008
The cereal import bill of the world’s poorest countries is forecast to rise by 56% in 2007/2008.
This comes after a significant increase of 37% in 2006/2007, FAO says in April.
For low-income food-deficit countries in Africa, the cereal bill is projected to increase by 74%, according to the UN agency’s latest Crop Prospects and Food Situation report.
The increase is due to the sharp rise in international cereal prices, freight rates and oil prices.
International cereal prices have continued to rise sharply over the past two months, reflecting steady demand and depleted world reserves, the report said.
Prices of rice increased the most following the imposition of new export restrictions by major exporting countries.
By the end of March prices of wheat and rice were about double their levels of a year earlier, while those of maize were more than one-third higher, according to the report.
According to FAO’s first forecast world cereal production in 2008 is to increase by 2.6% to a record 2 164 million tonnes.
The bulk of the increase is expected in wheat, following significant expansion in plantings in major producing countries.
