Food producers have sounded a cautious note following speculation that food prices are set to fall. Bigger cereal harvests in Europe and Asia have led to predictions that input costs for many food manufacturers could go down, with some savings passed on through the distribution chain to consumers. The UN’s Food and Agriculture Organisation (FAO) said: “World cereal production will total 2,310Mt this marketing season, 3% or 68Mt higher than in 2010-11. The report said the expected recovery in global cereal production along with lower than predicted demand, are adding to downward pressures on pricing. In September, it said, “international prices of all cereals with the exception of rice fell sharply, driven by large export supplies from the Black Sea region and prospects for a weakening of demand”.