The recent analysis published in FAO’s biannual Food Outlook states that a sharp rundown on inventories and only modest overall production increases for the majority of crops as reasons for continuing strong prices. It says that the next few months are crucial as the fates of the crops are still undecided. Although prospects are encouraging in some countries such as the Russian Federation and Ukraine, weather conditions, featuring too little and in some cases too much rain, could hamper maize and wheat yields in Europe and North America.
David Hallam, Director of FAO’s Markets and Trade Division, said that the general situation for agricultural crops and food commodities is tight with world prices at stubbornly high levels, posing a threat to many low-income food deficit countries. After two consecutive years of low prices, fish markets have rebounded this year.Production in 2011 is heading to a record but prices are likely to be supportedby strong demand from the developing countries.
With the start of this year prices are increasing and sustained by a dynamic demand, in particular from emerging economies. The price surges mainly reflect lagging supply, which, despite solid growth in overall aquaculture production, remains short of demand for a number of farmed species, including Atlantic salmon, trout, sea bass and sea bream, tilapia and Vietnamese catfish.
The report said that the world fish production is set to reach a new record in 2011, at around 149 million tonnes. This is due to both the growth in aquaculture production and the comeback of small pelagic catches in South America after a weak 2010. Increased catches are also forecast for other important species, such as Atlantic cod, Alaska pollock and Atlantic mackerel. Higher fishing quotas and an increased supply of wild species indicate that the fisheries management measures implemented by many countries are having a positive long-term effect on the sector’s sustainability.
