Sight and Life Magazine 1/2011

88 WHAT'S NEWricesYet Again …09RiseGlobal food prices rose to a fresh high in February 2011 –the eighth consecutive month of rising prices. Averaging236 points, prices were up 2.2% from January and were thehighest since January 1990, the inception date of the index.With the exception of sugar, the prices of all othercommodity groups monitored registered gains in February,with dairy products and cereals climbing the most. TheFood and Agriculture Organization of the United Nations(FAO) index measures monthly price changes for a food basketcomposed of dairy, meat and sugar, cereals and oilseeds.With the current global unrest and recent naturaldisasters, it is unclear where prices will go in 2011. This iscause for real concern, especially given that the last crisispushed 100 million additional people into hunger and, in addition,that rising food prices have the greatest impact on poorcountries, where food and energy are people’s majorspending focus.To monitor the index, visitwww.fao.org/worldfoodsituation/wfs-home/foodpricesindex/en/The Hungrier the Louder250200KazakhstanTunisiaThe government announced a rise of6 % of the food prices in 2010, which bearslittle relation to the reality experienced bythe populationRates of cereal self-sufficiency (in %)150100500RussiaUkraineBelarusAlbaniaSouth Africa TurkeyEgyptMoroccoGeorgiaArmeniaIsrael TunisiaAlgeriaJordan10 20 30 40 50 60Weighting of food in calculation of inflation (in %)MoroccoThe country lays out an agriculturalsystem which makes it a little less fragilethan its neighbors’EgyptFood price rises make up 55% ofoverall increases - a burden for familieson modest incomesAlgeriaNational production covers only14% of annual cereal requirementsSource: Challenges, March 3,2011