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Posts Tagged ‘food production

The hammer blow of the triple crisis, food in February 2011

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FAO-food-price-index-201102The FAO Food Price Index (FFPI) rose for the seventh consecutive month, averaging 231 points in January 2011, up 3.4% from December 2010 and the highest (in both real and nominal terms) since the index has been backtracked in 1990.

Prices of all the commodity groups monitored registered strong gains in January compared to December, except for meat, which remained unchanged. Changes in the composition of  the meat price index (read more) have resulted in adjustments to the historical values of the FFPI. One implication of this revision is that the December value of the FFPI, which previously was the highest on record, is now the highest since July 2008.

The Cereal Price Index averaged 245 points in January, up 3% from December and the highest since July 2008, but still 11% below its peak in April 2008. The increase in January mostly reflected continuing increases in international prices of wheat and maize, amid tightening supplies, while rice prices fell slightly, as the timing coincides with the harvesting of main crops in major exporting countries. The Oils/Fats Price Index rose by 5.6% to 278 points, nearing the June 2008 record level, reflecting an increasingly tight supply and demand balance across the oilseeds complex.

FAO-food-price-index-deflated-201102

FAO food price index deflated, 2011 February

See earlier posts on food, grain and prices:

Food production and grain trade / FAO food price index tops the 2008 peak / Food inflation crippled India’s households in 2010 / Early price indicator for 2011 foodgrain / Only 16 points under the 2008 peak, FAO’s food price index / Bringing nutrition back into climate change talks / Grain market outlook, end October 2010 / How the World Bank is leveraging the new food crisis.

The Dairy Price Index averaged 221 points in January, up 6.2% from December, but still 17% below its peak in November 2007. A firm global demand for dairy products, against the backdrop of a (normal) seasonal decline of production in the southern hemisphere, continued to underpin dairy prices. The Sugar Price Index averaged 420 points in January, up 5.4% from December. International sugar prices remain high, driven by tight global supplies. By contrast, the Meat Price Index were steady at around 166 points, as falling prices in Europe, caused by a fall in consumer confidence following a feed contamination, was compensated by a slight increase in export prices from Brazil and the USA.

FAO-food-commodity-price-index-201102The Index averaged 231 points in January and was up 3.4% from December 2010. This is the highest level (both in real and nominal terms) since FAO started measuring food prices in 1990. Prices of all monitored commodity groups registered strong gains in January, except for meat, which remained unchanged. “The new figures clearly show that the upward pressure on world food prices is not abating,” said FAO economist and grains expert Abdolreza Abbassian. “These high prices are likely to persist in the months to come. High food prices are of major concern especially for low-income food deficit countries that may face problems in financing food imports and for poor households which spend a large share of their income on food.”

“The only encouraging factor so far stems from a number of countries, where – due to good harvests – domestic prices of some of the food staples remain low compared to world prices,” Abbassian added. FAO emphasized that the Food Price Index has been revised, largely reflecting adjustments to its meat price index. The revision, which is retroactive, has produced new figures for all the indices but the overall trends measured since 1990 remain unchanged.

The state of the world’s crop biodiversity

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FAO, The Second Report on the State of the World’s Plant Genetic Resources for Food and AgricultureThis is a big one from the FAO. The Second Report on the State of the World’s Plant Genetic Resources for Food and Agriculture is a mega tome. At just under 400 pages, this very dense report is packed into eight chapters which occupy half the pages. The other half is made up of annexures and appendices. Even then, it’s just part of the entire SOWPGR2 package, for there is a synthesis report, the Global Plan of Action for the Conservation and Sustainable Utilization of Plant Genetic Resources, there is a thematic background studies section with seven studies, there are the country reports (over 100!) and there is a picture gallery. It’s an entire curriculum.

It’s been a while coming – the first report was published by FAO 14 years ago and much has changed since then. For one thing, climate change was quite uncommon in common discourse. This is hugely important because the genetic diversity of the grains, legumes, vegetables and fruits that we grow and eat – referred to as plant genetic resources for food and agriculture, or PGRFA – are the foundation of food production, and the biological basis for food security, livelihoods and economic development.

FAO, The Second Report on the State of the World’s Plant Genetic Resources for Food and AgricultureThe synthesis report says that PGRFA are crucial for helping farmers adapt to current and future challenges, including the effects of climate change. FAO’s Second Report on the State of the World’s Plant Genetic Resources for Food and Agriculture provides a comprehensive overview of recent trends in PGRFA conservation and use around the world.

It is based on information gathered from more than 100 countries, as well as from regional and international research and support organizations and academic programmes. The report documents the current status of plant genetic resources diversity, conservation and use, as well as the extent and role of national, regional and international efforts that underpin the contributions of PGRFA to food security. It highlights the most significant changes that have occurred in the sector since 1996, as well as the gaps and needs that remain for setting future priorities.

The core messages:
FAO, The Second Report on the State of the World’s Plant Genetic Resources for Food and Agriculture• PGRFA are essential raw materials for helping farmers respond to climate change. Plant breeding capacity needs to be strengthened and breeding programmes must be expanded to develop varieties with traits needed to meet this challenge.
• Loss of PGRFA has reduced options for the agricultural sector. The major causes of genetic erosion are land clearing, population pressures, overgrazing, environmental degradation and changing agricultural practices.
• Local PGRFA diversity found in farmers’ fields or in situ is still largely inadequately documented and managed. There is now a growing awareness of the importance of this diversity and its contribution to local food security.
• There has been progress in securing PGRFA diversity in a larger number of national genebanks. However, much of the diversity, particularly of crop wild relatives (CWR) and underused species relevant for food and agriculture, still needs to be secured for present and future use.
FAO, The Second Report on the State of the World’s Plant Genetic Resources for Food and Agriculture• Rapid scientific advances, especially in information technology and molecular biology, have introduced new techniques for PGRFA conservation and use. Their wider application offers new opportunities to increase efficiency of the conservation–production chain.
• Significant policy developments have changed the landscape of PGRFA management. Many more countries have adopted national programmes, laws and regulations for biodiversity following the adoption of the Convention on Biological Diversity (CBD) and the International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA).
• Better communication, collaboration and partnerships are needed among institutions dealing with PGRFA management – from conservation to plant breeding and seed systems. These are the key factors for an integrated conservation and utilization strategy and delivering sustainable solutions to build a world without hunger.