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AGRIC BUSINESSNEWS

FAO Warns Nigeria, Others, About Future Market Turbulence

The Food and Agricultural Organisation (FAO), has warned that the world’s food price problems are not over despite a current market lull.

The Director-General of FAO, Mr. José Graziano da Silva, issued the warning at a ministerial meeting on international food prices attended by some 30 agriculture ministers.

da Silva acknowledged that this year’s meeting was taking place in a less troubled climate than the first event in October 2012, when ministers came together in response to the third spike in international grain prices in five years.

“The outlook for international food commodity markets finally looks calmer this year,” he said. “Grain production has rebounded and higher stock-to-use ratios should bring greater stability to prices.

The FAO Cereal Price Index is 20 per cent lower than one year ago, but although prices have stabilized, the Director-General cautioned against dropping the guard.

“International prices have declined but they are still above their historical levels. And prices are expected to remain volatile over the next years,” he warned.

He urged countries to take advantage of the comparative calm to prepare for future market turbulence and find lasting solutions to the issues surrounding food price volatility.

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