What's New

The latest FAO Food Price Index averaged 209 points in December, down 2 points from November and the lowest level seen since June 2012. The drop is due mainly to declines in grains and oils/fats. Overall, global food prices in 2012 were 7 percent lower than in 2011.

Cereal prices dropped 6 points in December, led by weaker demand for feed grain and larger maize exports from South America. Rice prices also dipped due to expectations of a good harvest.

Small farms, meaning farms with two ha of land or less, make up 80 percent of all farm holdings in Africa south of the Sahara (SSA). Such a large population clearly has the power to spur economic development in the region, and needs to be included in any economic discussion. But smallholders often find themselves confined to local markets or subsistence-level farming, leaving them trapped in poverty. What can be done to allow Africa's small farms to reach their full potential?

As one of the world's most important staple crops, wheat plays a crucial role in the global agricultural economy and in global food security. The grain accounts for an estimated 20 percent of calories consumed throughout the world. But a burgeoning global population and changing climate are putting ever greater pressure on wheat farmers to produce bigger yields. A new multinational initiative, the Wheat Yield Network, has recently been launched to help raise global wheat yields and develop new wheat varieties that are better adapted to meet the world's changing needs.

FEWS NET has released their latest Monthly Price Watch for December. The report cites high but stable international wheat and maize prices, and predicts declines in international soybean prices in 2013.

Global discussion surrounding agricultural investment and funding has increased in recent years, with farmers, development advocates, and policymakers alike calling for wider investments to fight hunger and poverty. The 2012 edition of the FAO's State of Food and Agriculture Report follows closely on this discussion, focusing on the importance of farmers as investors and the need for a stronger global enabling environment.