Rome - High food prices continue to hit people in poor countries that spend a large part of their income on food, the United Nations Food and Agriculture Organization (FAO), said in a report released Thursday. Describing it as a "worrying development," the Rome-based FAO said its latest Food Outlook indicates that the food import bill of the so-called Low Income Food Deficit Countries (LIFDCs) is expected to reach 169 billion dollars in 2008, a 40 per cent increase over 2007.
By the end of 2008 these countries' annual food import basket could cost four times as much as it did in 2000, with world hunger levels set to worsen, FAO said.
International prices of most agricultural commodities have started to decline, but they are unlikely to return to the low price levels of previous years, according to the Food Outlook report.
The FAO food price index has remained stable since February 2008, but the average of the first four months of 2008 is still 53 per cent higher when compared to the same period a year ago.
"Food is no longer the cheap commodity that it once was. Rising food prices are bound to worsen the already unacceptable level of food deprivation suffered by 854 million people," said FAO Assistant Director-General Hafez Ghanem.
"We are facing the risk that the number of hungry will increase by many more millions of people," Ghanem said.
FAO's latest forecast for world cereal production in 2008 points to a record output, now at nearly 2.192 million tons, including milled rice, up 3.8 per cent from 2007.
Among major cereals, the tight wheat supply is likely to improve most, given the prospects for better harvests in 2008, FAO said.
Despite record production levels in several crops, tight markets will probably lead to continued price volatility during the season.
The rise in international prices of oilseeds and oilseed products has accelerated in the 2007-2008 period, with values climbing to record levels in March 2008, FAO said.
World markets have tightened considerably as reduced supply growth for oils and a drop in meal supplies are coinciding with further expansion in demand.
First forecasts for the 2008-2009 season point towards a strong recovery in global oilseed production, and the resulting oil and meal output should be sufficient to meet global demand, the UN food agency said.
"Generally favourable growing conditions" led to a record world sugar production in 2007-2008 and while world sugar consumption is foreseen to increase at a sustained rate, it will not be enough to absorb an expected second consecutive global supply surplus.
International sugar prices are likely to decline, FAO said.
Global meat output is expected to grow in 2008 despite high livestock feed prices while strong economic growth is expected to sustain "steadfast consumption" of the commodity in many developing countries, according to FAO.
Global milk production, which is responding to the past year's high milk product prices, is forecast to grow strongly in 2008.
However, global trade in milk products is anticipated to fall again in 2008 mainly because of reduced exportable supplies.
FAO's Food Outlook forecasts that fish and aquaculture production growth will continue in 2008. Prices for wild species from capture fisheries are moving upwards strongly but the price increase for farmed species is expected to be more moderate.
Worldwide potato production could expand over the next decade between 2 and 3 per cent annually - with developing countries, especially those situated in Sub Saharan Africa, being the main engine of growth, FAO estimates.
In China, the world's biggest potato producer, authorities are reviewing proposals for the potato to become one of the country's major food crops, while India is considering plans to double potato output in the next five to 10 years.
