FAO's updated forecasts see better-than-expected global cereal production, but concerns are growing over a sharp shortfall in maize grown in sub-Saharan Africa as well as poor production in other food insecurity hotspots. The Food Price Index declined 0.9 percent in June, driven by a sharp fall in sugar prices.
Strong crop yields, higher productivity and slower growth in global demand, along with lower oil and fertilizer prices, should contribute to a gradual decline in real prices for agricultural products over the coming decade, according to the latest Agricultural Outlook report produced by the OECD and FAO.
The FAO Food Price Index averaged 166.8 points in May, down 1.4 percent from April and as much as 20.7 percent from a year earlier. FAO also upgraded its May 2015 forecast for global production of wheat, coarse grains and rice.