1. Home
  2. Global

Prices highest since 2008

Palestine Square in Gaza City during Ramadan. Food insecurity is affecting Ramadan meals in the Gaza Strip as residents struggle to find and afford traditional Ramadan foods
Palestine Square in Gaza City during Ramadan (Erica Silverman/IRIN)

Food prices are at their highest since the 2008 crisis, according to new figures released by the UN Food and Agriculture Organization (FAO).

In mid-2008, international food prices reached their highest level in 30 years, sparking one of the worst food crises in recent times, toppling at least one government and pushing more than a billion people into hunger.

The global average price of food – including cereals, cooking oil, meat and dairy products – was 25 percent higher in December 2010 than in December 2009, said Abdolreza Abbassian, secretary of the Intergovernmental Group on Grains at FAO.

Although the average prices of cereals such as maize, wheat and rice were 39 percent up from December 2009, they were still 13 percent below the peak reached in June 2008.

Inclement weather and price volatility propelled prices during the second half of 2010. As drought and fires raged through Russia and Ukraine, two of the world’s top wheat producers, prices began to climb in July 2010. By September 2010 wheat prices had risen by between 60 and 80 percent and Russia banned exports. 

Read more
 Food could cost more in 2011
 "Food intelligence" could cut price swings
 The price of bread could rocket
 Subsidies won't keep bread on Mozambican tables

Canada, another major wheat producer, was hit by bad weather. Since November, prolonged dry conditions have affected soya bean and maize crops in Argentina, also among the top producers. Floods in Australia, an important source of quality wheat, could have an impact on prices.

"I am feeling less optimistic than I was in November - we have not had much good news," Abbassian commented. "But then we could have bumper crops everywhere and the prices could collapse – you never know – but, at the same time, high prices are not going to go away and there is a strong possibility that they might remain high for two years."

High food prices spell good news for farmers, encouraging them to plant more. "But many farmers then tend to diversify, which can have an impact on the supply of one particular crop," he said.

Lack of clarity on the supply of maize in China was also worrying. "Chinese statistics show that they have had record crops but food inflation is quite high," Abbassian said. If China stepped into the market with big orders in 2011 it could upset global supplies.

He suggested that countries with bumper crops or ample stocks of staple foods should maintain strategic reserves. Food importing countries should think strategically and negotiate favourable trading terms.

Rising fuel prices, which passed the US$90-a-barrel-mark last week, could also have an impact on food production and distribution in 2011.


This article was produced by IRIN News while it was part of the United Nations Office for the Coordination of Humanitarian Affairs. Please send queries on copyright or liability to the UN. For more information: https://shop.un.org/rights-permissions

Share this article
Join the discussion

It was The New Humanitarian’s investigation with the Thomson Reuters Foundation that uncovered sexual abuse by aid workers during the Ebola response in the Democratic Republic of Congo and led the World Health Organization to launch an independent review and reform its practices.

This demonstrates the important impact that our journalism can have. 

But this won’t be the last case of aid worker sex abuse. This also won’t be the last time the aid sector has to ask itself difficult questions about why justice for victims of sexual abuse and exploitation has been sorely lacking. 

We’re already working on our next investigation, but reporting like this takes months, sometimes years, and can’t be done alone.

The support of our readers and donors helps keep our journalism free and accessible for all. Donations mean we can keep holding power in the aid sector accountable, and shine a light on similar abuses. 

Become a member today and support independent journalism

Become a member of The New Humanitarian

Support our journalism and become more involved in our community. Help us deliver informative, accessible, independent journalism that you can trust and provides accountability to the millions of people affected by crises worldwide.