Global food prices up 10 pct since last year: UN

By Tuba Sahin

ANKARA (AA) - Worldwide food prices surged by 10 percent in May compared to the same month last year, the United Nations Food and Agriculture Organization (FAO) said on Thursday.

“Rising shipping costs and larger import volumes are set to lift the global food import bill to more than $1.3 trillion this year, a 10.6 percent increase from 2016," said the FAO’s semiannual food outlook report released Thursday.

The FAO Food Price Index -- which measures changes in the international prices of cereals, meat, dairy products, vegetable oils and sugar -- averaged 172.6 points in the month, up 2.2 percent on a monthly basis.

"Rising prices were reported in May for all of those groups except sugar," the organization said.

According to the food outlook report released Thursday, global food commodity markets were well-balanced driven by an increase in extensive supplies of wheat and maize as well as rebounding oilseed products output.

Food import bills rose faster in poor countries due to higher import volumes of meat, sugar, dairy, and oilseed products, the report said.

The FAO projected international prices of wheat will remain stable during the first half of the season.

"Rice supplies are also forecast to remain ample, although reserves may decline as some exporters reduce their public stockpiles," said the FAO.

The organization also forecasted that worldwide oilseed production will hit an all-time high in 2016-2017 with the back of outstanding yield levels for soybeans and would allow further replenishments of global stocks.

Growth in world meat production is projected to stagnate for the third year in a row due mainly to an anticipated decline in China. Thus, imports from the U.S. and Brazil may rise considerably, the FAO added.