Latest data from Food and Agriculture Organization (FAO) of the United Nations shows that food prices around the world rose 1.4%( 3 points) to 216 points in September from 213 points in August. The rise reflected strengthening dairy and meat prices and more contained increases for cereals. Prices of sugar and oils, on the other hand, fell.
The FAO Index, which measures monthly price changes for a food basket of cereals, oil-seeds, dairy, meat and sugar currently stands 22 points below its peak of 238 points in February 2011, and 9 points below its level of 225 points in September 2011.
The data further shows that in East Africa, the overall food security situation has started to improve with the beginning of the harvest season in Kenya, marked by declining food prices and improved livestock productivity due to enhanced rains. However, about 13.4 million people in the Horn of Africa are still in need of humanitarian assistance.
In Kenya, the food-insecure population is estimated at 2.1 million (plus about 535 000 refugees), mainly in agro-pastoralist areas in northern, southeastern and coastal districts that had three to four consecutive dry seasons.
According to Global Information and Early Warning System on Food and Agricultur (GIEWS) there will be a decline in world cereal production in 2012 from the record in 2011. The decrease will result in a significant reduction in world inventories by the close of seasons in 2013, even with world demand sliding as a result of high prices.