May 30, 2011

Food prices stay high amid Europe's drought

A drought across northern Europe this spring is starting to hurt upcoming grain production and efforts to tame food prices.

The lack of rain and abundance of sunshine is creating problems for farmers in much of Europe, creating shortages in cereals and fodder in many areas, according to officials.

The UN food agency FAO said its earlier hopes of a 4-5% spike in wheat and barley production in the EU have been dashed.

World food prices have reached a historic peak this year, raising fears of a repeat of the global food emergency that led to violence and unrest in many countries in 2008.