ROME (AFP) — Unfavourable weather, low stocks, tight supplies and strong demand are conspiring to keep global cereal prices high, the UN food agency said Wednesday.
"High international prices for food crops such as grains continue to ripple through the food supply chain, contributing to a rise in retail prices of such basic foods as bread or pasta, meat and milk," the Food and Agriculture Organisation warned.
Prices will remain high for the coming year, the Rome-based agency said, noting "problems in production in several major exporting countries and very low world stocks."
The FAO's latest Food Outlook report, issued Wednesday, said: "Supplies are much tighter than in recent years, while demand is rising for food as well as feed and industrial use."
The prices of some agricultural commodities are soaring even higher than sharp rises seen last year, it said.
Growing demand for crops used to produce biofuels also drives up prices, the report noted.
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