Food Prices Remain High

High food prices are providing incentives to increase long-term investment in the agricultural sector.

Tuesday, October 18, 2011

An FAO report entitled "The State of Food Insecurity in the World 2011", focuses on the cost of volatile food prices, as well as the risks and opportunities posed by high food prices.

Domestic food prices, both to the end consumer and of wholesale farming exports, increased significantly in most countries during the global food crisis of 2006-08.

Despite high fertilizer prices, the response has been a robust supply in many countries.

It is essential to take advantage of this supply in the short term by increasing investment in agriculture, including using initiatives aimed at small farmers and those that help them gain access to markets.

More on this topic

High Corn Prices Threaten Food Security

August 2011

The FAO has warned that the increases in corn prices may affect food security in Central America and Mexico.

Grain prices in the region have soared over the last year. Between June 2010 and June 2011, the wholesale price of white maize increased by 56% in Guatemala, 112% in El Salvador and 65% in Mexico.

Global Food Prices Continue to Rise

November 2010

FAO anticipates that recent rise in food commodity prices will continue and that future consumers will pay more for their food.

In its "Food Outlook", November 2010, the World Food Organization points out that its price index rose 34 points (+20%) between June and October, near the historical record of June 2008.

Agricultural Prices in the Coming Years

January 2011

FAO´s outlook for agricultural development during the decade 2010 - 2019 portends higher prices of products and agricultural commodities.

The average crop prices over the next ten years for commodities is projected to be higher than the levels of the past decade, before the 2007 – 2008 peak, both in real and nominal terms (adjusted for inflation).

The FAO supports small farmers in Central America

December 2008

The initiative will provide aid to small farmers in Panama, Belize, Costa Rica, El Salvador, Honduras and Guatemala.

The investment of $12 million will be used to produce 32,000 metric tonnes of seed valued at $52.7 million, according to the Panama America daily.

The UN Food and Agriculture Organization reported that it will support the increase in agricultural production by poor families in more than 20 countries in Latin America and the Caribbean, by providing better access to basic goods.

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