FAO Regional Office for Asia and the Pacific

FAO Food Price Index down 2 percent from June

Prices for most food commodities drifted lower in July

08/08/2013 Bangkok, Thailand

The FAO Food Price Index averaged 205.9 points in July 2013, 4 points (nearly 2 percent) below its revised value for June and 7 points, or 3.3 percent, lower than in July 2012. The decline in July marked the third consecutive monthly drop. The index was released today by the Organization's Rome Headquarters.

“The decline was driven by lower international prices for grains, soy and palm oil, while sugar, meat and dairy quotations were also down from the previous month,” Vili A. Fuavao, FAO Deputy Regional Representative for Asia and the Pacific, said today during the Organization’s monthly news briefing at the Foreign Correspondents Club of Thailand.


The FAO price index is only one indicator of how prices of selected raw material used for producing food are behaving at the world level. They may not always reflect the situation at local or national levels but could provide good information to policy makers about the trend in international markets.


Fuavao said, “The FAO Cereal Price Index averaged 227.7 points in July, down 8.8 points, or 3.7 percent, from June and as much as 33 points, or nearly 13 percent, below July last year. The sharp decline reflects falling maize prices as favourable weather boosted hopes of a significant production increase in several leading maize producing countries.”


International workshop on land tenure issues to convene 13-15 August in Bangkok


Turning to the upcoming Regional workshop on Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the context of national food security, Fuavao explained.


“Tenure systems are increasingly coming under stress as the world’s growing population requires more and more food at the same time that environmental degradation and climate change are reducing the availability of land, fisheries and forests. Inadequate and insecure tenure rights increase vulnerability, hunger and poverty, and even lead to conflict when people fight for control of these resources.”


He added: “Providing secure tenure rights for women can increase their social and political status, and improve their sense of self-esteem, confidence, security and dignity.”


New Asia-Pacific food monitoring publications announced


FAO’s Regional Office for Asia and the Pacific began issuing the monthly Asia Pacific Food Price and Policy Monitor (APFPPM) on July 13. The new APFPPM covers food prices in local markets and provides readers with up to date information on food and agricultural policy developments across the region. The next issue will be posted on the web the week of 12 August at http://www.fao.org/asiapacific/rap/home/apfppm/en/.


FAO’s Regional Office in Bangkok also issued a new book, Regional Trade Agreements and Food Security in Asia, which tackles the often raised issue of whether regional trade agreements can play a positive role in strengthening food security in Asia, especially in the context of global food price volatility. The publication looks at what kind of domestic policy mix is necessary for a country to benefit from trade liberalization in improving national food security. Governments have adopted differing positions in this debate and this publication examines the experience of selected countries with major regional trade agreements, focusing on the ability of those countries to realize their national food security objectives. The book also reviews some experiences with regional trade agreements outside the region in order to learn from their experiences.


FAO continues surveillance programmes for A(H7N9) in countries neighbouring China


Since 31 March 2013, the A(H7N9) virus in China has struck 134 people, causing 43 deaths, while 87 victims recovered. Of those contracting the disease, about 32 percent die. Cases were reported from 12 provinces of China including Taiwan. Commenting on the emergency
Fuavao said, “FAO and developmental partners have initiated regional coordination, expert consultation on surveillance, risk assessment and risk management  including a surveillance framework and risk ranking of countries. Emergency regional surveillance of H7N9 was conducted in countries at risk from the disease The countries participating were Bangladesh, Bhutan and Nepal in South Asia and Cambodia, Indonesia, Lao PDR, Myanmar and Viet Nam in Southeast Asia. The surveillance was carried out with US$1 million in financial support from the US Agency for International Development.”
Also participating in the media briefing were Sumiter Broca, FAO Policy/Programme Officer, Anthony Burgard, Valentina Pernechele, Youngran Choi from FAO’s Economic Social and Policy Assistance Group and Tum Sothyra of the Emergency Centre for Transboundary Animal Diseases.

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