A U.N. organization said Tuesday that massive food shortages facing at least 20 nations next year threaten millions of people with starvation and malnutrition.

In a report on the world's food outlook, the U.N. Food and Agriculture Organization estimates there are "790 million choronically undernourished people in the developing world."It also said that 2 billion people suffer from "hidden hunger" - diet-related micronutrient deficiency diseases that can hinder mental and physical growth and lead to other serious disorders.

"There is plenty of food to feed all of the world's 5.4 billion people, but the problem comes in distributing it efficiently to the starving and malnourished," said agency director-general Edouard Saouma.

"Wars, civil disturbances and economic chaos have exacerbated the situation in eight nations that are endangered by food shortages."

The agency said much of the shortage in food throughout the world may be due to a sharp drop in 1993's world production of cereal - the basic diet of most nations.

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An overall drop of 4 percent in 1993 caused higher prices on international markets for cereal stocks, which include wheat, rice, maize and other grains, and caused serious regional food shortages.

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