World Food Prices and Poor Nations

Food prices set to stay high, says UN food agency, June 7, 2011, BBC News: “Global food prices will remain high and volatile throughout this year and into next despite record food production. The United Nations Food and Agriculture Organisation (FAO) twice yearly Food Outlook analysis says rising demand will absorb most of the higher output. It says its index of food prices in May was at 232, only five points below February’s record high of 237. The FAO says higher food prices could mean poor countries will see food import costs rise by up to 30%. That would mean them spending 18% of their total import bills on food this year, compared with the world average of 7%. The organisation says the next few months will be critical in determining how major crops will fare this year…”