Citing dwindling stocks and only slight production increases for the majority of crops, a United Nations report released Tuesday says world food prices are likely to remain high for the rest of this year and into 2012. The biannual Food Outlook published by the U.N. Food and Agriculture Organization (FAO) states that the next few months will be critical in determining how the major crops will fare this year, according to the Rome-based agency. "The general situation for agricultural crops and food commodities is tight with world prices at stubbornly high levels, posing a threat to many low-income food deficit countries," according to David Hallam, Director of FAO's Markets and Trade Division. FAO's monthly food price index showed that global food prices, which earlier this year soared to levels seen during the 2007 to 2008 food crisis, dropped by one percent in May. Declines in the prices of cereals and sugar were responsible for the slight decrease in the May index, says FAO, adding that this offset increases in meat and dairy prices. The international meat price index hit a new record in May and a combination of strong import demand and limited export availability pointed to a further increase in prices over the next few months, FAO said.
