The prices of meat, cereals and dairy products have shown a slight increase over the past month and are likely to keep rising, according to a report by the UN Food and Agriculture Organization (FAO). The global Food Price Index rose by 1.4 percent in September.
The monthly Food Price Index Report, released by the FAO, shows a three-point climb from 213 in August to 216 in September. The climb in the price of meat and dairy products is the main reason for the higher price index. The price of cereals has also contributed to the climb. However, the prices of sugar and oils have dropped by 0.4 percent.
The Index is based on the monitoring of prices of a basket of 55 common food commodities. The food commodities are internationally traded.
According to the report, the price of cereals like wheat, maize and corn rose 1 percent and dairy products including milk, skimmed milk, cheese and casein, by 7 percent. The global food prices have reached peak levels -- the highest in six months. Developing countries around the world are likely to be hit hard by the rise.
The drought ravaging the U.S. Midwestern farm belt and the Black Sea grain region, including Russia and Ukraine, is responsible for the increase in the food price. The lower output of grains has resulted in higher prices of animal feed. Consequently, "grain-intensive pork and poultry sectors" have seen a rise in the price, as well.
Russia's promise not to ban export of grains has led to a drop in the price of wheat for the second month in a row. But dwindling supplies of both wheat and maize are a cause for concern. Though some countries have recorded excellent harvests, the forecast for this year is down by 2.6 percent as compared to last year's crop forecasts, reports the FAO.
For the first time in two years, the global food market will switch to a short supply mode, Bloomberg quoted Hiroyuki Konuma, the regional representative of the Asia-Pacific region for the FAO, saying. The global food situation will be monitored very closely, he added.
Rising food prices could lead to a global food crisis, reminiscent of the one in 2008-2009, that led to the Arab Spring in 2010. Iran, for instance, has recorded a steady increase in the price of common food commodities, like chicken, beef, lamb and yogurt. People have taken to the streets to protest against the price rise.
However, apart from the drought affecting the major grain-growing regions of the world, Iran is also strained by the poor agricultural policies and the international sanctions placed on it. Poor weather and agricultural policies have prohibited several developing countries from having a good harvest this year.
Nevertheless, the food situation may still improve soon, putting a stopper to any crisis in the making.
