Global food import bills are increasing, partly due to soaring demand for biofuels, according to the UN Food and Agriculture Organization (FAO)'s latest Food Outlook report.

Global expenditures on imported foodstuffs look set to surpass 400 billion dollars in 2007, almost 5 percent above the record of the previous year, FAO said.

Rising prices of imported coarse grains and vegetable oils -- the commodity groups that feature most heavily in biofuel production -- account for the bulk of the increase. Import bills for these commodities are forecast to rise by as much as 13 percent from 2006, the report said.

More expensive feed ingredients will lead to higher prices for meat and dairy products, raising expenditures on imports of those commodities. In several cases, such as for meat and rice, larger world purchases are likely to drive import bills up.

Record-high international freight rates have also affected the import value of all commodities, putting additional pressure on countries' abilities to cover their food import bills.

Developing countries as a whole are anticipated to face a 9 percent increase in overall food import expenditures in 2007. The more economically vulnerable countries are forecast to be most affected, with total expenditures by low-income food-deficit ( LIFDC) and least developed countries (LDCs) expected to rise by 10 percent from last year.

"The food import basket for the least developed countries in 2007 is expected to cost roughly 90 percent more than it did in 2000," said FAO economist Adam Prakash. "This is in stark contrast to the 22 percent growth in developed country import bills over the same period."

World cereal production in 2007 is forecast to reach 2125 million tons, up 6 percent from the reduced level in 2006 and higher than FAO's previous forecast in May.

"The prospect of a strong recovery in global cereal production in 2007 is a positive development, but total supplies will still be barely adequate to meet the expected rise in demand, not only from the traditional food and feed sectors but in particular from the fast-growing biofuels industry," said Abdolreza Abbassian, one of the authors of the report.

"This means prices for most cereals are likely to remain high in the coming year," Abdolreza Abbassian said.

FAO's tentative forecast for rice production this year stands at around 633 million tons, matching last year's record level, but with production still running short of consumption, according to FAO.