OECD and FAO see Slower Growth in Demand keeping World Food Prices Low
The growth in agriculture and fish trade is projected to slow to about half the previous decade’s growth rate, and average less than 2 percent per year in volume terms for most commodities. Nevertheless, agricultural trade is expected to remain more resilient to economic downturns than trade in other sectors. For nearly all commodities, exports are projected to remain concentrated in a few supplying countries, which may imply a greater susceptibility of world markets to supply shocks.
“Real prices of most agricultural and fish commodities are expected to decline slightly over the ten-year Outlook period,” OECD Secretary-General Angel Gurria said at the launch event in Paris. “As we have seen in the past, unexpected events can easily take markets away from these central trends, so it is essential that governments continue joint efforts to provide stability to world food markets. It is equally important that we look ahead as we seek to meet the fundamental challenge facing world food and agriculture: to ensure access to safe, healthy, and nutritious food for a growing world population, while at the same time using natural resources more sustainably and making an effective contribution to mitigating climate change.”
Illustration Photo: a fish farm (Public Domain from Pixabay.com)