Global food imports 5% more expensive
Global food import bills are increasing, partly due to soaring demand for biofuels, according to FAO’s latest Food Outlook report. Global expenditures on imported foodstuffs look set to surpass US$400 billion in 2007, almost 5% above the record of the previous year.
oils – the commodity groups that feature most heavily in biofuel production –
account for the bulk of the increase. Import bills for these commodities are
forecast to rise by as much as 13% from 2006, the report said.
Expensive feed ingredients
More expensive feed
ingredients will lead to higher prices for meat and dairy products, raising
expenditures on imports of those commodities. In several cases, such as for meat
and rice, larger world purchases are likely to drive import bills up.
In
the case of sugar, generally high and volatile prices could lead to smaller
import volumes, which is likely to result in a drop in the cost of global sugar
imports, the report said.
Record-high international freight rates have
also affected the import value of all commodities, putting additional pressure
on countries’ abilities to cover their food import bills.
Related
links:
FAO
Food Outlook Report
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