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Over the next ten years, the prices of food and commodities are expected to remain low across the world, at least on the average, as agricultural output is projected to increase, absorbing any increase in future demands that may even be driven by population growths.
This was a major finding contained in an annual report, the ‘Agricultural Outlook 2019-2028’, a collaborative effort of the Organisation for Economic Co-operation and Development (OECD) and Food and Agriculture Organization of the United Nations (FAO), prepared with input from the experts of their member governments and from specialist commodity organisation
The report noted that several years of strong supplies have reduced the international prices of most agricultural commodities, with cereal, beef and sheep meat prices showing short-term rebounds. For nearly all commodities covered in the Outlook, real prices are projected to remain at or below current levels over the coming decade, as productivity improvements continue to outpace demand growth.
Global demand for agricultural products is projected to grow by 15 percent over the coming decade, while agricultural productivity growth is expected to increase slightly faster, causing inflation-adjusted prices of the major agricultural commodities to remain at or below their current levels.
“Global agriculture has evolved into a highly diverse sector, with operations ranging from small subsistence farms to large multinational holdings,” José Graziano da Silva, FAO Director-General and Angel Gurría, OECD Secretary-General wrote in the Foreword of the report. Along with providing food, they added, today’s farmers “are important custodians of the natural environment and have become producers of renewable energy.”
They also noted that; in order to meet the high expectations society places on agriculture, public and private decision makers require reliable information on the likely trends of global demand, supply, trade and prices and the factors driving … Read More...