Global food prices rose to a record high in December 2010, according to a monthly report released by UN's Food and Agricultural Organization (FAO) on Wednesday.
The FAO Food Price Index surged to a record high last month, surpassing the previous high of June 2008 when food shortages sparked violent riots in several countries.
The FAO food price index tracks the monthly price changes for a food basket comprising wheat, corn, rice, oilseeds, dairy products, sugar and meats.
The index averaged 214.7 points in December 2010, up from 206 points recorded the previous month. The previous high for the index was recorded in June 2008, when violent riots were witnessed in countries including Cameroon, Haiti and Egypt.
The agency said the index was driven by the rising prices of sugar, cereal, meat and oil, stressing that the current situation is different from that of 2008 when the surge in prices was prompted by lower food production in poor countries.
The price of rice, one of the two most important cereals for world food security, has remained consistent. But the cost of wheat, the other critical cereal, has risen steeply mainly because of the recent flooding in Australia, last year's drought in Russia and the heavy rains that affected planting in Canada.
The price of corn has also risen considerablly in recent years due to its increased usage for manufacturing biofuels, specially in the United States. Another factor for the rise in corn prices is the drought in Argentina, which is the world's second biggest exporter of corn behind the U.S.
The UN agency also warned in its monthly report that global production of food gains should rise by at least 2% this year to meet the ever increasing demand without depleting stocks.
