Global bread prices set to rise?28 August 2012
Consumers could face higher prices for bread and other foods if extreme global weather continues to damage harvests, according to the United Nations Food and Agriculture Organisation.
Speaking at a conference in Sweden, Jose Graziano Da Silva, the Organisation's head told delegates that global food prices could reach "crisis point" next year if drought continues to wreak havoc on harvests. Da Silva called on G20 Nations - which produce 95% of the crops affected by price hikes - to take "coordinated action" to limit the damage.
35 US states have declared disaster zones resulting from the worst drought ever recorded and corn and grain crops in the country have been decimated.
Conversely, wet summer weather combined with limited sunshine in the UK has delayed harvests and concern has been raised over the quality of this year's wheat.
Meanwhile, agricultural analysis group SovEcon has said that Russia's exportable grain surplus of 10 million to 11 million metric tons could run out by November following a drought which has caused a 28.6% year-on-year drop in yields and supply shortages. Fears that the country’s government may restrict exports or introduce an outright ban as in 2010 have also mounted.
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