Food prices to remain high for 10 years

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Food prices to remain high for 10 years ��UN

By FEMI MAKINDE

Published: Punch Sunday, 1 Jun 2008

A report from the Food and Agriculture Organisation of the United Nations has warned that the current exorbitant prices of food items will remain so for the next 10 years.

The report, which was sighted on the website of the FAO by our correspondent on Friday, stated that food prices might become more volatile due to drought and growing demand for biofuel

To beat the consistent rise in price of crude oil at the international market, many countries are now converting grains into grain-based fuel.

The report read in part, �Agricultural commodity prices should ease from their recent record peaks but over the next 10 years they are expected to average well above their mean levels of the past decade.�

Although the FAO has not listed Nigeria among the nations vulnerable to food crisis yet some neighbouring countries made the list. The report said that the Current high food prices would hit the poor and hungry people hardest especially those in low income nations.

The global body appealed that, �Humanitarian aid must be urgently mobilised to face this dramatic situation, but to find sustainable solutions and avoid similar cases in the future, the emphasis in these countries must be on boosting agricultural production and productivity as well as growth and broader economic development.�

The Director General of the FAO, Jacques Diouf, said that coherent action was urgently needed by the international community to deal with the impact of higher prices on the hungry and poor.

According to him, no fewer than 862 million people are suffering from hunger and malnourishment . This, he said, �highlights the need to re-invest in agriculture. It should be clear now that agriculture needs to be put back onto the development agenda.�

The report suggested a review in biofuel policies in the nations involved in converting grains which should be put in humans� stomachs to vehicles� and generators� tanks.

According to the report, �World fuel ethanol production tripled between 2000 and 2007 and is expected to double again between now and 2017 to reach 127 billion litres a year.

�Biodiesel production is seen to expand from 11 billion litres a year in 2007 to around 24 billion litres by 2017. The growth in biofuel production adds to demand for grains, oilseeds and sugar, so contributing to higher crop prices.�

High prices of food, the report said, would be beneficial for many commercial farmers both in developed and developing countries. However, it added that many farmers in developing countries were not linked to markets and were unlikely to benefit from the projected higher prices.

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