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Last Updated: Thursday, 14 February 2008, 11:43 GMT
Cereal prices hit poor countries
Wheat
Wheat prices have risen 83% in the past year
The rising price of cereals such as wheat and maize is a "major global concern", the United Nations' Food and Agriculture Organization (FAO) says.

Poor countries could see their cereal import bill rise by more than a third. Africa as a whole is expected to see an estimated 49% increase this year.

International wheat prices have risen 83% in the past 12 months.

Demand from emerging countries such as China, and droughts and flooding have pushed cereal prices to record highs.

CEREAL IMPORT BILLS
2007/8 forecast
Africa up 49%
Asia up 25%
Latin America up 31%
Oceania up 25%
Europe up 53%
Source: FAO

It is estimated poor countries will pay a record $33.1bn (17bn) for cereal imports in the year to July 2008. This is despite a fall in the total amount they will import.

In an attempt to limit the impact of rising prices on their populations, governments have lowered import tariffs, raised food subsidies and imposed duties on food exports.

Food crisis

The rising price of wheat, maize and rice will push up the cost of basic foods and this will affect the world's vulnerable populations the most, the FAO said.

It warned 36 countries around the world were facing a food crisis.

Maize
Prices of basic foods have increased, affecting the vulnerable populations most
United Nations' Food and Agriculture Organization

The highest number of countries facing a severe shortage of food - 21 - is in Africa.

Lesotho, Somalia and Swaziland are said to be facing an "exceptional shortfall" in food supply after years of adverse weather.

The FAO this week launched an appeal for $87m of emergency assistance to help flood-affected populations in Mozambique, Zimbabwe, Zambia and Malawi.

Farmers in flooded areas are in urgent need of seeds to begin replanting, with only two months to the end of the cropping season, the FAO said.



SEE ALSO
UN warns on soaring food prices
17 Dec 07 |  Special Reports
Wheat breaks through $10 a bushel
17 Dec 07 |  Business
Sowing the seeds of farming's future
13 Nov 07 |  Science/Nature
Counting the cost of wheat price hike
21 Sep 07 |  Special Reports

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