Prices for agricultural products will be low the next 10 years

Submitted by bashun on Fri, 07/06/2018 - 13:06

According to the OECD-FAO forecast, period of 2018-2027 will be characterized by the weakened global demand for agricultural products and foodstuffs  as well as weakened further productivity growth in this sector. As a result, prices for basic agricultural products will remain low during the next decade. This was reported by the press service of FAO, reported.

"Over the next decade world production of agricultural products and fish will grow by about 20%, but this figure will largely vary in different regions. Steady growth is expected in developing regions with faster population growth, including sub-Saharan Africa, South and East Asia, and the Middle East and North Africa. On the contrary, in developed countries, especially in Western Europe, production growth is expected to slow down," is said in the report.

With a slowdown in consumption and production growth, the growth rate of trade in agricultural products and fish will be halved compared to the previous decade.

The volume of agricultural production in Europe and Central Asia will grow by 9% over the next decade. At the same time 55% of growth will be provided by the grain sector, while the livestock sector will provide 38% growth, and fishing - 7%.

"The region will continue to be the main exporter of wheat with key exporting countries, such as Russia, Ukraine and Kazakhstan, whose aggregate share of exports is 24%. Due to the increase in the volume of wheat production, the share of these three countries in the world wheat export volume will grow from 33% to 35%," is said in the report.

Milk production in the region up to 2027 will grow by 9% compared to 2015-2017. Europe and Central Asia are the largest producers of cheese in the world, which account for about 52% of the world's production.



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