Farming prices soared by 35 per cent in 2011

Heavy repercussions especially in the south of the world

Despite a decrease recorded in December, the price of food products soared in 2011 by 35 per cent in comparison with the previous year; and in the immediate future the general uncertainty of the trend of the global economy, of currencies and of the energy markets make the prospects unpredictable. This emerges from the latest report on farming prices, published yesterday by the Food and Agriculture Organization of the United Nations (FAO). In commenting on the data he provides, Abdolreza Abbassian, a FAO economist, stressed the difficulty, at the present moment, of making reliable predictions on what the trend in agricultural prices will be in the coming months. In any case 2011 has presented anew the situation that has existed for the past three years, with very heavy repercussions, especially in the south of the world. The FAO cereals price index recorded on average 247 points, with an increase, precisely, of 35 per cent in comparison with 2010, the highest figure since the 1970s.

As has been said, the forecasts for this year are difficult, but the market of the future, he purchase orders postponed, in the past few days have recorded increases for various foodstuffs that might defeat the fall in prices recorded in December, which was not inconsiderable. Food prices had in fact decreased by 2.4 per cent in comparison with November, that is, by five points on the FAO index, today affirmed at 211 points, 27 less (the equivalent of 11.3 per cent) than the peak reached in February 2011.

The downward trend was triggered by the decrease in the international prices of cereals, oil, sugar and certain dairy products, such as butter, as well as in the price of meat, caused by exceptional harvests, by the fall in demand and by a strong dollar. The prices of fats and oil seeds also decreased in December, but the uncertainty of the soya and maize harvests in South America is already causing higher prices in these sectors.