More than 30 farm ministers and deputy ministers took part in an emergency meeting in Rome on Oct. 16 organized by the U.N. Food and Agriculture Organization to discuss the soaring prices of wheat, corn, soy beans and other grains. It is regrettable that major grain exporters Russia and the Unites States, and major grain importer China did not send ministers to the meeting.
But it is said that the demand and supply situation in grain markets is not as tight as in 2008 when the world experienced a food crisis. It is important for each country to provide accurate information on food production and consumption and grain inventories to ensure transparency and prevent volatility in grain markets. Information on China's food production and grain inventories lacks transparency. Beijing must make efforts to improve its statistics.
Rises in grain prices were triggered by a severe drought that hit the U.S. Midwest this summer. From late August to early September, grain prices shot up to record highs at the Chicago Merchandise Exchange as speculative funds flowed in based on anticipation of a large reduction of grain production. An estimate by the U.S. Agriculture Department showing low levels of global grain inventories also contributed to rising grain prices. Affected by high temperatures and dry weather, wheat production also fell in Russia and Ukraine. In emerging economies, consumption of meat is increasing. Since it takes 7 kg of feed to produce 1 kg of meat, these countries are importing more grain.