Food Organization Warns of Shortages
The United Nations Food and Agriculture Organization says more trouble is coming.
Compiled by staff
Published: Nov 13, 2008
Even as world cereal production will rise to new levels the United Nations' Food and Agriculture Organization is warning the world not to take its eye off the ball. Food shortages will return and the global economy should be ready for it.
The FAO says the current global economic crisis will impact agriculture in many countries, including India and other developing countries, according to a report posted at Commodity Online. The warning was issued even as record crops for cereal grains, and rising availability of rice loom.
The organization says the record crop and falling food prices could create a sense of false security. If current price volatility and liquidity conditions prevail in 2008/2009, plantings and output could be affected to such an extent that a new price surge might take place in the 2009-2010 crop year, the organization warns.
FAO points out that the recovery in grain production occurred in developed countries that could respond to high prices, but developing countries were left behind. Those countries were not able to boost their capacity to respond to the higher prices, the organization reports.
Tightening credit is to be a major problem for agriculture into the next year, FAO reports. This could hit developing countries harder, where capital availability can dry up quickly.
The battle for acres next year - especially in the United States is heating up. Farm Futures will release a proprietary report on the 2009 crop during its Management Summit. The first summit is set for December 11 & 12 in St. Louis. To learn more visit www.farmfutures.com/summit.
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