NATIONAL FOOD PRICES SITUATION – 03 March 2010

FAO Food Price Index decreased

Weaker international prices of sugar, dairy and cereals resulted in a decline of 2.6 percent from its January level. Prices of meat and oilseeds remained firm. The index is 22 percent up from February last year but lower than its peak in 2008.

International cereal prices declining

International prices of wheat, maize and rice have declined slightly in the past months and are 60 percent, 42 percent and 40 percent respectively lower than their peaks in the first half of 2008. However, prices of rice remain higher than two years ago.

In Eastern Africa, prices of cereals fell in recent months but are still at high levels

Prices of cereals have declined with the new harvests in late 2009 but in general remained between 40 to 100 percent higher than two years ago, in particular in countries that gathered reduced crops. InSudan, prices of food staple sorghum and millet have doubled from the pre-crisis levels, while in Kenyathe price of maize is 44 percent higher. In Somalia, the price of sorghum is more than twice the level of two years ago. By contrast, maize prices have returned to about normal in Uganda.

In Western Africa, prices of cereals continue to increase

After having decreased shortly with the harvests of 2009, cereal prices have resumedtheir increase in most countries and remain higher than two years earlier, particularly for imported rice. In Niger, Burkina Faso and Mali, prices of basic staple millet have increased by about 10 to 13 percent in the past two-three months.

In Southern Africa maize prices are increasing with the lean season

Prices of the main staple maize, which declined and stabilized in 2009 following good harvests, are increasing in some countries with the start of the lean season. Overall, prices are still above the pre-crisis levels of early 2008, except in the largest producer South Africa where they are at low levels.

In Asia rice and wheat prices remain 30 to 60 percent higher than two years ago

Prices of rice in India and Vietnam increased in the second half of 2009 are now well above their levels of one and two years ago. In the Philippines and in Pakistan prices of rice are generally stable but higher than two years earlier. In Bangladesh, prices of ricethat were declining since mid-2008resumed an upward trend and in January were some 25 percent higher than three months earlier.

Prices of wheat in India and Pakistanare at their highest levels and have increased by some 20 percent in the past three months. By contrast inAfghanistan, prices of wheat are decreasing and are on average one-third lower than two years ago.

In Haiti increase of food price gives concern for food security

In February prices of rice (imported) were 25 to 50 percent higher than before 12 January (when the earthquake struck), while maize prices rose by 30 percent.

Food prices low in Central America

Prices of staple food maize declined sharply in the second half of 2009 to their levels of two years ago in most countries of the sub-region, except in Nicaragua. However, prices have resumed an increasing trend in January and February.

Food prices stable in South America

Prices of wheat and rice have generally declined last year and are around their levels of two years ago or below, with the exception of wheatin Argentinaand rice in Colombia.