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| Version 2 | Version 3 |
|---|---|
| UN calls meeting on food price concerns | UN calls meeting on food price concerns |
| (about 1 hour later) | |
| The United Nations' food agency has called a special meeting of policy makers to discuss the recent rise in global food prices. | The United Nations' food agency has called a special meeting of policy makers to discuss the recent rise in global food prices. |
| The announcement came after Russian Prime Minister Vladimir Putin extended the country's ban on grain exports on Thursday. | The announcement came after Russian Prime Minister Vladimir Putin extended the country's ban on grain exports on Thursday. |
| This added to fears that prices of food staples would continue to rise. | This added to fears that prices of food staples would continue to rise. |
| The meeting will take place on 24 September, probably in Rome, the UN Food and Agriculture Organization said. | The meeting will take place on 24 September, probably in Rome, the UN Food and Agriculture Organization said. |
| "In the past few weeks, global cereal markets experienced a sudden surge in international wheat prices on concerns over wheat shortages," the agency said. | "In the past few weeks, global cereal markets experienced a sudden surge in international wheat prices on concerns over wheat shortages," the agency said. |
| "The purpose of holding the meeting is for exporting and importing countries to engage in constructive discussions on appropriate reactions to the current market situation." | "The purpose of holding the meeting is for exporting and importing countries to engage in constructive discussions on appropriate reactions to the current market situation." |
| Heatwave | Heatwave |
| Mr Putin did not say when exactly the Russian grain export ban, originally to run from 15 August to 31 December, would be lifted, but said that it would not be before next year's harvest had been reaped. | Mr Putin did not say when exactly the Russian grain export ban, originally to run from 15 August to 31 December, would be lifted, but said that it would not be before next year's harvest had been reaped. |
| Russia is one of the world's biggest producers of wheat, barley and rye and was hit hard by a drought this summer. | Russia is one of the world's biggest producers of wheat, barley and rye and was hit hard by a drought this summer. |
| The heatwave destroyed crops in many parts of the country, pushing food prices up. | The heatwave destroyed crops in many parts of the country, pushing food prices up. |
| This year's crop could be as low as 60 million tonnes, but Russia needs almost 80 million just to cover domestic consumption, analysts say. | This year's crop could be as low as 60 million tonnes, but Russia needs almost 80 million just to cover domestic consumption, analysts say. |
| Other key grain producers have also reported shortages, causing the price of wheat to rise more than 50% since the beginning of July. | Other key grain producers have also reported shortages, causing the price of wheat to rise more than 50% since the beginning of July. |
| Supplies | |
| Grain prices on commodity markets shot to near two-year highs last month as investors digested worsening news of the Russian harvests. | |
| The FAO is concerned at the speed at which prices have increased over the last two months. | |
| Its economist, Abdolreza Abbassian, said the latest Russian move to extend the ban would prolong the "volatility and anxiety" already on the markets. | |
| But the UN agency has stressed throughout that the situation is very different to the food crisis two years ago. | |
| Prices are currently lower, production levels higher and stocks more abundant than during the 2007-8 period, when shortages sparked riots across the world. | |
| "It still does not mean that we are going to have a crisis," Mr Abbassian said. | |
| "It does highlight a very big problem here: a very large exporting country with a great influence on the market can make unilateral decisions like that. It causes disturbances of the market." | |
| Impact on consumers | |
| Analysts suggest that fierce competition could soften the impact on consumers, as retailers and producers will be reluctant to pass on in full higher raw material costs to shoppers. | |
| Some big food companies have also already signed future supply contracts at prices that are lower than on international commodity exchanges. | |
| But any rises will be felt more keenly in developing countries, where food makes up a bigger proportion of household spending. | |
| A 30% rise in bread prices has already triggered riots in Mozambique this week in which seven people died. | |
| "There are other issues at play there - which is not uncommon in poorer countries. Even a small increase in the price of food, which is so important to them... can spark a problem," Mr Abbassian told BBC World News. | |
| "Food prices, and wheat in particular, are so important for food security and even the political stability of countries." | |
| Selected European commodity prices over the last 12 months | Selected European commodity prices over the last 12 months |
| Price in euros per metric tonne | Price in euros per metric tonne |
| Price in pounds sterling per metric tonne | Price in pounds sterling per metric tonne |
| Price in euros per metric tonne | Price in euros per metric tonne |
| Price in pounds sterling per metric tonne | Price in pounds sterling per metric tonne |
| Price in US cents per pound | Price in US cents per pound |