World food import bill at $1.4 tr, down 10%

“The 2012 forecast for global food import bills is set at $1.14 trillion, 10% lower than the record of last year," Food and Agriculture Organisation (FAO) said in its latest Food Outlook report.

Lower global prices and freights, together with lesscereal purchases are predicted to reduce global expenditure on imported foodstuffs in 2012, the bi-annual global market report added.

“The global food import bill is also likely to be marked by strong to moderate falls in the cost of most foodstuffs compared with 2011," it said.

The highest decline is expected in vegetables and fruits ($27 billion) and cereals ($24 billion).

The value of imports is also estimated to decline for dairy products ($14 billion), sugar ($12 billion) and vegetable oils ($11billion), it said. Oilseeds, the only item not expected to have seen a decline, is estimated to increase by 10% ($7billion) and fish by 3% ($3 billion).

Meanwhile, FAO noted that the global food prices declined by 8% in October 2012 compared to the same month last year.

“The index dipped two points to 213 points from September's revised level of 215 points. The decline was largely due to lower international prices of cereals and oils and fats, which more than offset increases in dairy and sugar prices," it added.

FAO's food price index is a measure of the monthly change

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