Tag: Food and Agriculture Organization

World food prices rise for first time in a year: FAO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The United Nations food agency’s world price index rose in April for the first time is a year, but is still some 20 percent up on a record high hit in March 2022 following Russia’s invasion of Ukraine.

The Food and Agriculture Organization’s (FAO) price index, which tracks the most globally traded food commodities, averaged 127.2 points last month against 126.5 for March, the agency said on Friday. The March reading was originally given as 126.9.

The Rome-based agency said the April rise reflected higher prices for sugar, meat and rice, which offset declines in the cereals, dairy and vegetable oil price indices.

Also read: Wheat prices surge as Kremlin drone attack stokes Black Sea tensions

“As economies recover from significant slowdowns, demand will increase, exerting upward pressure on food prices,” said FAO Chief Economist Maximo Torero.

The sugar price index surged 17.6 percent from March, hitting its highest level since October 2011. FAO said the rise was linked to concerns of tighter supplies following downward revisions to production forecasts for India and China, along with lower-than-earlier-expected outputs in Thailand and the European Union.

While the meat index rose 1.3 percent month-on-month, dairy prices dipped 1.7 percent, vegetable oil prices fell 1.3 percent and the cereal price index shed 1.7 percent, with a decline in world prices of all major grains outweighing an increase in rice prices.

Also read: Amid jump in exports, US trade deficit narrows in March

“The increase in rice prices is extremely worrisome and it is essential that the Black Sea initiative is renewed to avoid any other spikes in wheat and maize,” said Torero, referring to a deal to allow the export of Ukrainian grain via the Black Sea.

In a separate report on cereals supply and demand, the FAO forecast world wheat production in 2023 of 785 million tonnes, slightly below 2022 levels but nonetheless the second largest outturn on record.

“(The) 2023/24 prospects for rice production along and south of the equator are mixed, largely due to the regionally varied impact of the La Niña event,” FAO said.

FAO raised its forecast for world cereal production in 2022 to 2.785 billion tonnes from a previous 2.777 billion, just 1.0 percent down from the previous year.

World cereal utilisation in the 2022/23 period was seen at 2.780 billion tonnes, FAO said, down 0.7 percent from 2021/22. World cereal stocks by the close of the 2022/2023 seasons are expected to ease by 0.2 percent from their opening levels to 855 million tonnes.

Also read: Global gas markets rebalancing to remain tight in 2023, says IEA

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

International Forest Day 2023: All you need to know

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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International Forest Day is celebrated every year on March 21 with an aim to raise awareness about the values, significance, and contributions of the forests in maintaining the balance between ecosystems on the earth. Various organisations, private and government, come together to enlighten the public about the forests and the many benefits of trees.

The day is celebrated across the world to make people aware of the importance of green cover for the welfare of communities, the planet and all future generations.

History

In 1971, the 16th session of the Conference of the Food and Agriculture Organization (FAO) voted to constitute “World Forestry Day” and later, the Centre for International Forestry Research (CIFOR) held World Forest Days for six years from 2007 to 2012.

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Finally, on November 28, 2012, The United Nations General Assembly designated March 21 to be celebrated as the International Day of Forests (IDF). The UN declaration encouraged governments to organise and carry out activities and afforestation campaigns at all levels.

Ever since then, on International Forest Day, various activities are conducted in conjunction with governments and other organisations by the United Nations Forum on Forests and the Food and Agriculture Organisation.

2023 Theme

“Forests and health” has been chosen as the theme for International Forest Day 2023.

This year the day will be dedicated to highlighting how forests contribute vastly to our health by maintaining the purity of water, cleaning the air, capturing carbon to fight climate change, providing food and life-saving medicines, and improving our well-being.

It is important and up to us to safeguard these precious natural resources and this year’s celebration calls for giving, not just taking.

Significance

On International Day of Forests, countries and organisations “undertake local, national and international efforts to organise various activities for afforestation and promote the healthy use of forest resources.”

ALSO READ | International Day of Happiness 2023: 10 simple everyday tips to be happy

By safeguarding forests, and ensuring their sustained survival, our economies, ecosystems, and species will also continue to thrive.

Forests can lift about 1 billion people out of poverty, and they can also create an additional 80 million green jobs, according to a UN study.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

World food prices hit World food prices climb for second month in September; hits 10-year peak10-year peak –FAO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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World food prices rose for a second consecutive month in September to reach a 10-year peak, driven by gains for cereals and vegetable oils, the United Nations food agency said on Thursday.

The Rome-based Food and Agriculture Organization (FAO) also projected record global cereal production in 2021, but said this would be outpaced by forecast consumption.

FAO’s food price index, which tracks international prices of the most globally traded food commodities, averaged 130.0 points last month, the highest reading since September 2011, according to the agency’s data.

The figure compared with a revised 128.5 for August. The August figure was previously given as 127.4.

On a year-on-year basis, prices were up 32.8% in September.

Also Read: India’s sugar export reaches record 7.23 million tonne in 2020-21: AISTA

Agricultural commodity prices have risen steeply in the past year, fuelled by harvest setbacks and Chinese demand.

The FAO’s cereal price index rose by 2.0% in September from the previous month. That was led by a near 4% increase for wheat prices, with the UN agency citing tightening export availabilities amid strong demand.

“Among major cereals, wheat will be the focus in the coming weeks as demand need to be tested against fast-rising prices,” FAO Senior Economist Abdolreza Abbassian said in a statement.

World vegetable oil prices were up 1.7% on the month and showing a year-on-year rise of about 60%, as palm oil prices climbed on robust import demand and concerns over labour shortages in Malaysia, FAO said.

Palm oil futures have rallied further in early October to hit record highs as a surge in crude oil markets has lent further support to vegetable oils used in biodiesel.

Also Read: Palm oil prices at record high; here’s what it means according to expert

Global sugar prices rose 0.5% in September with concern over adverse crop weather in top exporter Brazil partly offset by slowing import demand and a favourable production outlook in India and Thailand, according to FAO.

For cereal production, FAO projected a record world crop of 2.800 billion tonne in 2021, up slightly from 2.788 billion estimated a month ago.

That would be below world cereal use of 2.811 billion tonne, a forecast revised up by 2.7 million tonne from a month earlier mainly to reflect increased wheat use in animal feed, FAO said in a cereal supply and demand note.

Global cereal stocks were expected to ease in 2021/22 but would still be at a comfortable level, FAO added.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

How global workers’ shortage, erratic weather and supply chain disruptions are driving up food prices

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The impact of the COVID-19 pandemic disruptions and the spread of the Delta variant is now reflecting in food prices. Shortage of workers, extreme weather events, breakdown of supply chains, and rising inflation are all contributing to soaring prices of food.

World food prices were on a decline over the last two months after increasing for nearly 12 months straight. However, the UN Food and Agriculture Organization (FAO) on September 2 said the prices began picking up again in August.

The FAO food price index, which tracks the prices of the most traded food commodities in the world, was 123.5 points in July as against 127.4 points in August. Prices of food in August were 32.9 percent higher than the previous year.

While heatwaves and floods have affected crops across the world, from the US to Italy and even Brazil, labour shortages are proving to be another immediate concern. The lockdowns have severely affected well-established supply chains in many countries.

Malaysia’s palm oil production fell by 30 percent due to a shortage of workers, 20 percent of tomatoes in Southern Italy were ruined as they were not harvested on time and also because of poor transportation, Bloomberg reported. Meanwhile, shrimp production in South Vietnam fell by over 60 percent, it added. Several other food items across different regions witnessed circumstances, with countless tonnes of production lost.

The labour shortages that these nations are facing are not new but only compounded by the pandemic restrictions. Agricultural work is seasonal, back-breaking, pays little, and has only a few benefits to offer. As a result, most of the positions are often filled by migrants, many of whom come to countries like the UK and US illegally.

As economies develop, individuals try to learn skills and land high-paying jobs in the cities. Jobs like farmhands find fewer takers. Therefore, these vacancies are usually picked up by migrants.

It is estimated that 73 percent of the workforce in US agriculture comprises immigrants. Of the entire agricultural workforce in the country, nearly 50 percent are undocumented migrants.

However, recent anti-migrant regulations and rhetoric across the Western hemisphere made the inflow of migrants smaller, and the lockdowns restricting movement from one country to the other almost completely halted the flow of workers. When shutdowns were lifted, many workers made their way back home as they were stuck without support or pay on foreign soil.

Now, nations like the UK, US, Australia, Italy and others that traditionally rely on immigrants in their agricultural sector are starting to feel the pressure.

Also Read: How climate change is altering wine production across the world

Wages in the sector aren’t high enough to compensate for the effort put in. Therefore, the sector is gradually increasing the wages being offered to workers. A similar effect is also being witnessed across other traditionally low paying jobs in restaurants, hospitality and other associated sectors.

As margins often remain thin, the increased costs are all but expected to be passed on to the consumer. Inflationary pressures, transitionary or not, are compounding the price pressure.
But for countries like India and China, where there is an abundance of labour, significant price pressures aren’t expected outside of inflationary rise apart from outlier regions.

However, domestic migrants, who make up a significant portion of the agricultural workforce in India, have suffered catastrophically since March 2020 due to the lack of support and dwindling wages. There is also no comprehensive data to show how badly they were affected.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

World food prices fall to lowest in more than two years in November, reveals UN FAO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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World food prices declined in November to their lowest level in more than two years, led down by much weaker vegetable oil, dairy and cereal prices, the United Nations food agency said on Thursday.

The Food and Agriculture Organization’s (FAO) food price index, which measures monthly changes for a basket of cereals, oil seeds, dairy products, meat and sugar, averaged 160.8 points last month, down from a revised 162.9 in October, reaching its lowest level since May 2016.

The October figure was previously given as 163.5.

FAO said global cereals output in 2018/19 was seen at 2.595 billion tonnes, down marginally from the previous forecast and 2.4 percent below last year’s record high production.

FAO’s forecast for world wheat production in 2018/19 was 725.1 million tonnes, 2.8 million tonnes lower than the previous forecast.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

World food prices dip in September, says FAO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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World food prices slipped in September from the month before, with only sugar posting a rise, the United Nations food agency said on Thursday.

The Food and Agriculture Organization’s (FAO) food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 165.4 points last month, against a marginally revised 167.7 in August.

The August figure was previously given as 167.6.

FAO said global cereals output in 2018 was seen at 2.591 billion tonnes, up three million tonnes on the previous forecast given in September, but still down 63 million tonnes, or 2.4 percent, from 2017’s record production level.

FAO’s forecast for world wheat production in 2018 was almost unchanged on 722.4 million tonnes, the smallest since 2013.

The UN body’s Cereal Price Index averaged almost 164 points in September, down 2.8 percent from August.

Among the major cereals, maize export quotations registered the sharpest month-on-month decline down some 4 percent, mostly on expectations of a very large crop in the United States and good supply prospects globally.

Wheat price quotations also fell, mainly on continued strong sales and shipments from Russia.

By contrast, the FAO Sugar Price Index averaged 161.4 points last month, up 2.6 percent from August. FAO said the increase was largely linked to the ongoing harvesting in Brazil, the world’s largest sugar producer and exporter.

“Drought conditions in Brazil during the critical growing season are seen to have had negative impacts on sugarcane yields, with harvested cane volumes falling below expectations,” FAO said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow