FAO, OECD Release Latest Agricultural Outlook

On Jul 23, 2012 0

The Food and Agriculture Organization (FAO) and the Organization for Economic Cooperation and Development (OECD) have released their joint assessment for agricultural market prospects and forecasts for 2012-2021. Titled OECD-FAO Agricultural Outlook 2012-2021, the report anticipates that agricultural output growth will decrease to an average of 1.7 percent annually over the next 10 years from a trend rate of over 2 percent per year in recent decades. Higher input costs, increasing resource constraints, growing environmental pressures and the impacts of climate change will all serve to dampen supply response.

The report also projected that growth will come from developing countries, which will increasingly dominate in the production of most agricultural commodities, and also take on a more important role in commodity trade. It further notes several threats that may hinder the planets agricultural sustainability. These include extreme degradation of agricultural land, critical water scarcity, frequent extreme weather events and changing climatic patterns in many parts of the world.

Among the recommendations of the report are governments encouragement for better agronomic practices, creation of the right commercial, technical and regulatory environment and strengthening agricultural innovation systems (e.g. research, education, extension, infrastructure), with attention to the specific needs of smallholders. The report further cited the need to develop national investment schemes and increased development assistance to agriculture for research and development, innovation adoption and infrastructure development.

See FAOs news release at http://www.fao.org/news/story/en/item/151304/icode/. To access the report, go to http://www.agri-outlook.org/pages/0,2987,en_36774715_36775671_1_1_1_1_1,00.html.