Food prices fall slightly in October: FAOListen /
Food prices fell by one per cent in October, according to the United Nations Food and Agriculture Organization (FAO).
FAO also says that the food import bill for 2012 may drop as a result of lower international prices and freight rates combined with lower cereal purchases.
Charles Appel reports.
The UN agriculture agency says the drop in food prices in October was largely due to lower international prices of cereals, oils and fats, which more than offset increases in dairy and sugar prices.
FAO adds that for the first 10 months of the year, food prices were on average eight per cent lower than in the same period in 2011.
At the same time, FAO says that global expenditure on food imports is forecast at $1.14 trillion in 2012 which is 10 percent lower than last year’s record level.
Regarding world rice production, FAO says that in 2012 it may surpass last season's as a result of favourable growing conditions.
According to FAO, an expansion of trade in 2012 is being sustained by steady import demand and ample export supplies.
Charles Appel, United Nations