Rus News Journal

The meal will fall in price

Delay of world economy and good harvests stabilise the prices for the foodstuffs

the Prices for foodstuff this year will decrease against delay of growth of economy and unemployment increase, the Food and agricultural organisation of the United Nations (Fao) predicts. The meal, however, will fall in price for a short while — in the long term the next ten years almost all foodstuff will continue to rise in price.

We start to notice reduction of prices on the foodstuffs — the general director of Fao Jose Gratsianu yes has declared Silva, addressing to conferences in Hanoi. Reduction in price of foodstuff will be promoted by delay of rates of economic growth, and also unemployment increase in developed and developing countries which will lower demand. Under the IMF forecast, the world economy will slow down the growth from 3,8 % in 2011 to 3,3 % following the results of this year. Besides, experts of Fao expect close to record a crop of the basic grain crops against aspiration of farmers to earn on the record prices established in last year.

In February, 2011 of the price for the foodstuffs have reached a maximum from the moment of the beginning of measurements in 1990, has testified the index of Fao tracing cost of 55 basic products. In spite of the fact that in February of this year the meal has risen in price in the second consecutive time after a semi-annual break, now it all the same on 10 % is cheaper, than one year ago. Wheat has fallen in price in comparison with a February maximum on 29 %, and rice has fallen in price on a quarter in comparison with peak of September of last year.

Experts as a whole divide expectations of Fao. if to recognise that a climate will not present unpleasant surprises, crops of the basic agricultural crops this year should be good. It will increase the offer. Demand should decrease a little, considering some delay of rates of increase of world economy. All it should lead to depreciation of wheat, rice, corn and sugar — economist Capital Economics on the raw goods of Muktadir has confirmed daily Ur with Rahman.

Nevertheless reduction of prices this year will appear short-term. The next ten years the most part of foodstuff will continue to rise in price. definitely, in nominal expression we will see growth continuation on all categories of the raw goods — the group economist of Fao on commodity markets Abdolreza Abbasian predicts. Thus one of the main threats will be represented by growing dependence of the prices for production of agriculture on cost of energy carriers and fluctuations in the currency markets.

In more long-term future agricultural manufacturers also should react to growth of the population of a planet. It is expected that by 2050 it will increase with 7 mlrd to 9 mlrd the person. To feed them, it is necessary to increase manufacture of foodstuff by 70 %, has counted up Fao.