Global Food Security Update (April 2011)

KEY MESSAGES

• International food prices decreased slightly in March from their historic peak in February. However, there is no evidence to suggest any fundamental changes to the recent general upward trend. Prices are also extremely volatile and are likely to remain so until stocks are replenished by the northern hemisphere summer harvests. Crude oil and energy prices are also rising rapidly.

• Some countries have seen price rises in excess of 30% for some commodities during the first quarter of 2010. According to WFP monitoring, the basic cost of the food basket has increased in 44 of 63 countries monitored during the first quarter of 2011 and is currently more than 10% above the 5-year average.

• According to World Bank estimates, since June 2010 there has been a net increase in extreme poverty of about 44 million people in low- and middle-income countries as a result of food price rises. If prices rose a further 10% from current levels, simulations show that an additional 10 million people would fall below the extreme poverty line.