FAO puts cereal output at 2,101m tonnes
Monday, 10 December 2007
NEW YORK, Dec 9 (PTI) The latest forecast by UN's Food and Agriculture Organisation has put this year's world cereal production at 2,101 million metric tons, with most of the increase coming from rise in coarse grains output, especially maize in the United States.
The figure represents a slight downward revision since the agency's November forecast, but still indicates a record level of production, up 4.6 per cent from last year.
International cereal prices last month remained high and volatile, however, reflecting sustained demand, particularly from the bio-fuels industry, coupled with historically low levels of stocks and insufficient increases in production, mainly of wheat, in exporting countries, the FAO says in its latest Crop Prospects and Food Situation report.
Rises in international prices have translated into higher retail prices of basic foods in many countries, says the report.
Most affected by the food inflation are those developing countries that depend heavily on imports to cover their cereal consumption requirements.
Low-income population groups are anticipated to bear the heaviest burden, because their daily energy intake depends more on cereal-based products and the share of food in their total expenditures is high, the report adds.
For the group of Low-Income Food-Deficit countries (LIFDCs), 2007 cereal production is forecast to rise only marginally, the report says, adding that if the largest countries, China and India, are excluded, overall cereal output for the remaining countries is likely to register a significant decline.
Together with an anticipated reduction in quantities imported by these countries in 2007-08, this will lead to lower per capita cereal food and feed consumption.
Despite the smaller volumes to be imported from world markets, the cereal import bill of LIFDCs will, however, increase sharply for the second consecutive year due to higher prices and freight rates, says the agency in the report.
The figure represents a slight downward revision since the agency's November forecast, but still indicates a record level of production, up 4.6 per cent from last year.
International cereal prices last month remained high and volatile, however, reflecting sustained demand, particularly from the bio-fuels industry, coupled with historically low levels of stocks and insufficient increases in production, mainly of wheat, in exporting countries, the FAO says in its latest Crop Prospects and Food Situation report.
Rises in international prices have translated into higher retail prices of basic foods in many countries, says the report.
Most affected by the food inflation are those developing countries that depend heavily on imports to cover their cereal consumption requirements.
Low-income population groups are anticipated to bear the heaviest burden, because their daily energy intake depends more on cereal-based products and the share of food in their total expenditures is high, the report adds.
For the group of Low-Income Food-Deficit countries (LIFDCs), 2007 cereal production is forecast to rise only marginally, the report says, adding that if the largest countries, China and India, are excluded, overall cereal output for the remaining countries is likely to register a significant decline.
Together with an anticipated reduction in quantities imported by these countries in 2007-08, this will lead to lower per capita cereal food and feed consumption.
Despite the smaller volumes to be imported from world markets, the cereal import bill of LIFDCs will, however, increase sharply for the second consecutive year due to higher prices and freight rates, says the agency in the report.