July 20, 2009

 

Global cereal production in 2009 is expected to fall due to lower plantings and crop yields, but the outlook for global supply and demand remains satisfactory, reflecting a large carryover of stocks and stagnant demand, the UN said Thursday (July 16).

 

World cereal production in 2009 is expected to fall 3.4 percent to 2.21 billion tonnes from last year's record harvest, mostly due to lower plantings and yield among developed countries, the UN's Food and Agriculture Organization said in a report.

 

The organization foresees drops in wheat and coarse grain production but nevertheless expects the second largest global cereal harvest on record.

 

In developing countries, output is expected to remain unchanged from last year.

 

Despite overall good cereal harvests and declining international food prices, domestic food prices in developing countries remain high, the FAO said.

 

Cereal prices in developing countries are more than 25 percent higher than before the soaring food price crisis two years ago for 77 percent of the price series covered by FAO's database.

 

"The high food price situation continues to give rise to concern for the food security of vulnerable populations in both urban and rural areas, as these groups spend a large share of their incomes on food," FAO said.