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OUTLOOK FOR GRAINS AND GRAIN IS INCREASED 15% TO 40% rise in agricultural prices over the next decade, predicts the FAO

Agricultural Commodities

increase between 2010 and 2019 and far away compared to the previous decade, although without reaching the peaks of 2007-2008, according to the latest outlook for agriculture developed by the OECD and FAO.

The joint paper by the Organization of the United Nations Food and Agriculture Organization (FAO) and the Organization for Economic Cooperation and Development (OECD) indicates that both increased production and consumption of agricultural products will led by emerging countries.

Grains rise between 15% and 40%

OECD and FAO estimate that over the next ten years the prices of grain and coarse grains will increase an average of between 15% and 40% in real terms compared to the reference period 1997-2006.

40% Oil and dairy 16%

The forecast increase in vegetable oils is estimated at around 40%, while dairy products will make between 16% and 45%.

The document emphasizes that the factors that play an important role in increasing prices and demand is sustained economic growth long-term emerging markets and increased production of bioenergy.

An increase, the latter argued, inter alia, by high oil prices and development policies and incentives promoted in countries like U.S. or the European Union (EU).

Another significant data that produced the report states that agricultural production will grow more slowly in the next 10 years than in the previous decade, although it will remain in line with population growth.

In this area, estimates of the FAO and the OECD confirms that the increased production will reach 70% needed to meet demand population in 2050.

Presenting the document, explained that he foresees a situation where population growth is higher than production, although he stressed the importance that governments carry out policies to support production.

The report stresses that are necessary investments aimed at increasing production and productivity to address this situation and highlights a trade with clear rules.

recommended analysis of this chapter, so as to identify appropriate strategies for possible policy long-term growth, structuring appropriate fiscal and monetary plans.

(Prof. Andrew Laconich)