Global Food Prices Expected To Increase In 2011

According to the Food and Agriculture Organization of the United Nations (FAO) food prices in 2011 are expected to increase.

In the latest edition of its Food Outlook report, the agency also issued a warning to the international community to prepare for harder times ahead unless production of major food crops increases significantly in 2011.

The report, at 119 pages, covers many aspects of global agriculture, with data on all the main agricultural products and statistics on key countries.

The increase in international prices of food commodities, all of which accruing in the second half of 2010, is boosting the overall food import bill in 2010 closer to the peak reached in 2008.

“Given the expectation of falling global inventories, the size of next year’s crops will be critical in setting the tone for stability in international markets,” FAO said. “For major cereals, production must expand substantially to meet utilization and to reconstitute world reserves, and farmers are likely to respond to the prevailing prices by expanding plantings.