Food prices rise third straight month in April
Rome, May 9, 2013
Global food prices rose in April for a third straight month as surging dairy costs kept upward pressure on the United Nations food agency's index, but cereal output is expected to be strong this year.
Food prices spiked during the summer of 2012 as the United States was hit by a severe drought and dry weather plagued other producers. After falling at the start of 2013, prices have been rising again in the past three months.
The Food and Agriculture Organisation's (FAO) price index, which measures monthly changes for a basket of cereals, oilseeds, dairy, meat and sugar, averaged 215.5 points in April, up 1 percent from a revised 213.2 in March.
A sharp rise in dairy prices was the main reason for the increase, while meat prices rose marginally and other commodities fell, FAO said.
The agency said global cereal production would increase 6 percent to 2.708 billion tonnes in 2013 from the previous year, led by an expected 9.3 percent rise in coarse grains output and a 5.4 percent gain in wheat.
Whether the production increase lowers prices will depend on weather and demand over the next few months, FAO senior economist Abdolreza Abbassian said.
The cereal forecast is still "very much at the mercy of mother nature", he said. "If demand accelerates in 2013, the increase in production would be offset by higher demand."
Production of course grains in the United States is expected to drive this year's increase, FAO said. Producers of maize in the United States, the world's largest producer, intend to plant the largest area since 1936, FAO said, citing survey data.
Crops in Europe and the Black Sea region are expected to contribute to higher wheat output, and producers in India and Indonesia are expected to drive a 10 million tonne increase in rice output this year, FAO said.
The estimate of world cereal output in 2012 was 2.306 billion tonnes, about 4 million tonnes lower than last month's figure.
Global cereal stocks at the end of this year are seen at 505 million tonnes, 5 million tonnes higher than previously forecast, FAO said. – Reuters
More Miscellaneous Stories
- Girl, 9, dies after fall from 8th floor in Abu Dhabi
- Lebanese café brand opens Dubai outlet
- Bahrain poultry firm told to step up safety
- Customer dies in Bahrain cafe brawl
- Bahraini boys hurt while planting bombs
- Philips, Ericsson launch LED street lighting
- DuBiotech to set up first Halal safety lab
- Jotun to supply coatings for Makkah Station
- Raytheon wins $655m Kuwait Patriot deal
- Alwaleed Foundation lights up 3 Saudi villages
- Poultry farms strike may trigger shortages in Bahrain
- Oman seals Victoria food security pact
- Saudi woman, 80, donates $133m to charity
- New Saudi clamp on energy drinks
- Outrage follows Bahrain killer bomb
- Improvised explosive device used in Bahrain attack
- 3 policemen killed in Bahrain blast
- Dammam-Al Ahsa train service starts
- Egypt wheat supplies enough to last until June
- Expat killed at Saudi workers' holding facility
- 80 global speakers for Doha summit on family
- Restaurant runs up $47,555 phone bill in 4 days
- NZ minister to visit Gulf states
- Public-private tie-ups ‘vital for agri growth’
- China firm wins solar power project in Amman
- 15,000 attend Bahrain garden show
- Omani firms shine at top food expo
- Bahrain to set up national food company
- Dozens hurt in gas leak at plant near Doha
- Twelve dead in Qatar restaurant gas explosion