FAO: Global Food Prices Fall as Dairy and Meat Costs Decline

Senin, 09 Juli 2012 | 14:51

PARIS: Global food prices fell for a third month to the lowest level in 21 months as the costs of dairy products and meat slipped, easing household spending on meals.An index of 55 food items tracked by the United Nations' Food & Agriculture Organization (FAO) dropped 1.8% to 201.4 points in June from a revised 205 points in May, the Rome-based agency reported on its website today.

Surging grain prices at the end of June may lift the cost of food this month, Abdolreza Abbassian, an economist at the FAO, said by phone from Rome before the report. Chicago corn futures jumped 15% in the week ended June 29 on speculation a drought in the US Midwest will damage the crop.

"Continued economic uncertainties and generally adequate food supply prospects kept the index down, although growing concerns over dry weather sent prices of some crops higher towards the end of the month," the FAO wrote.

The number of hungry people in the world should decline this year on the back of lower food prices, FAO Director General Jose Graziano da Silva said last month. The food security situation in the Sahel and Horn of Africa regions is still critical, according to the FAO.

Meat prices may fall in coming months, mirroring a drop for dairy in May, Abbassian said last month. World milk production is forecast to climb 2.7% this year to 750.1 million metric tons, accelerating from last year's 2.3% increase, the FAO has forecast. (Bloomberg/T03/aph)

by Newswire
source http://en.bisnis.com