What's New

The latest FAO Food Price Index was released yesterday, and is down four points from June and seven points from a year ago. This is the third consecutive monthly drop and is due in large part to lower grain, soy, and oil prices.

The Cereal Price Index dropped in July by 8.8 points, down nearly 33 points from July 2012. This sharp drop was driven mainly by maize prices, which fell on favorable weather and production prospects in several major producers. Wheat prices also declined in July, but that decline was limited by increased export demand.

The latest FEWS Net Monthly Price Watch was released last week, citing generally stable international staple grain prices.

Large carry-over stocks of Thai rice have balanced out against record low rice production in the US; global rice production estimates remain on track to surpass record 2011-2012 harvests. Global maize prices also remained stable in June after sharp declines in April, while wheat export prices held steady due to favorable production prospects. Global soybean output is estimated to increase on strong production expected in both North and South America.

As the global population continues to grow and become more urbanized, smallholder farmers will play a critical role in feeding the world. Despite their importance to global food security, however, these farmers face daunting challenges in the form of climate change, price volatility, limited access to credit and insurance, and inadequate access to nutritious food. And addressing these challenges effectively is complicated even further by the fact that small farmers have widely varying needs, advantages, and abilities.

ReSAKSS-Africa (Regional Strategic Analysis and Knowledge Support System) website is now ready with enhanced features to track progress in implementing the Comprehensive Africa Agriculture Development Programme (CAADP), including the target of allocating 10 percent of national budgets to agriculture.

The European Union could be on the road to more stringent biofuel regulations. In a hard-won compromise, the European Parliament’s Environmental (ENVI) Committee on July 11 voted to cap the transportation industry’s use of first-generation biofuels at 5.5% and to require reporting of the indirect land use changes (ILUC) caused by biofuel production. The vote also calls for countries and suppliers to promote the use of alternative biofuel sources, such as algae and straw.