Livestock and biofuel outpacing crop production

Cereals are still at the core of what people eat, but
diets are becoming higher in protein, fats and sugar in many
parts of the world as incomes rise and urbanisation
increases - Special focus on India
The recent fall in prices of major crops is expected to
continue over the next two years before stabilising at levels
above the pre-2008 period, but markedly below recent
peaks, according to the latest Agricultural Outlook produced
by the OECD and FAO.
Demand for agricultural products is expected to remain firm
while expanding at lower rates than in the past decade.
Cereals are still at the core of what people eat, but diets are
becoming higher in protein, fats and sugar in many parts of
the world, as incomes rise and urbanisation increases.
The OECD-FAO Agricultural Outlook 2014-2023 says such
changes, combined with a growing global population, will
require substantial expansion of production over the coming
decade. Led by Asia and Latin America, developing regions
will account for more than 75percent of additional
agricultural output over the next decade.
Presenting the report in Rome, OECD Secretary-General
Angel Gurría said: "Agriculture markets are returning to
more settled conditions after a period of unusually high
prices.
This has been helped by governments showing restraint in
the use of trade measures. But we cannot be complacent.
We must do more - on trade, on productivity, and to tackle
poverty. Governments should provide social protection for
the most vulnerable, and develop tools to help farmers
manage risks and invest in agricultural productivity.
Achieving gains in ways that are both inclusive and
sustainable remains a formidable challenge."
FAO Director-General Jose Graziano da Silva said: "This
year the Outlook's message is more positive. Farmers
reacted very rapidly to the high prices and increased their
production so that now we also have more stocks available.
We foresee that prices related to cereals will decrease for at
least the next two years.
The picture is different for meat and fish where we are
facing growing demand. The good performance of the
agricultural sector particularly in developing countries will
contribute to the eradication of hunger and poverty."