FAO food price index falls slightly in October

The Food Price Index of the UN Food and Agriculture Organization (FAO) fell 1 percent in October, compared to September, and for the first 10 months of this year food prices were on average 8 percent lower year on year, the organization said Thursday. The decline was largely due to lower international prices of cereals and oils and fats, which more than offset increases in dairy and sugar prices, the Rome-based organization said. Meanwhile, the FAO Food Outlook, a bi-annual global market report, highlighted that lower international prices and freight rates, together with lower cereal purchases, could push down the world food import bill in 2012. Global expenditure on food imports was forecast at 1.14 trillion U.S dollars in 2012, 10 percent lower than last year's record level, the report added. "Despite tight markets, a set of conditions and measures have so far stopped international food prices from spiraling up as they did in 2007-2008 and 2009-2010," said FAO Director-General Jose Graziano da Silva. He said that chief among those were the improved international coordination and market transparency brought about by the G20's Agricultural Market Information System (AMIS). "Droughts or floods are not what causes crisis. It is lack of governance. In a globalized world, we cannot have food security in only one country or in one region. We need to strengthen the global governance of food security," da Silva added.