Yahoo Finance UN Raises Alarm Over Global Food Prices
World leaders must take swift and co-ordinated action to ensure that food price shocks do not turn into a catastrophe in the coming months, the United Nations has warned.
Global (Chicago Options: ^RJSGTRUSD - news) alarm over the potential for a food crisis of the kind seen in 2007/08, when price protests and riots occurred in a number of countries, has escalated in recent weeks.
The fears are prompted by a severe drought in the US Midwest, which has sent grain prices to record highs, fuelling a 6% surge in the UN Food and Agriculture Organisation's (FAO) July food price index.
The FAO said in a joint statement with the World Food Programme and the International Fund for Agricultural Development that swift action could prevent a renewed food crisis.
It said leaders must tackle both the immediate issue of high prices, as well as the long-term issue of how food is produced and consumed at a time of rising population, demand and climate change.
Senior G20 officials held a conference call last week on rising food prices, but leaders will wait for September's crop report from the US department of agriculture before deciding whether to take joint action on the issue.
Wheat prices are politically sensitive in many less-developed nations as it is the source for bread, a key dietary staple.
Ahead of the US September crop report, soyabean prices have shot up around 20% in the past year, based on the benchmark US and Argentinian prices.
Together the two countries supply more than 60% of the world's soya supply, which is used as animal feedstock and in many pre-prepared meals.
More From Sky News
