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Outlook sees global food and commodity prices low

A new global agricultural outlook report projects food prices and commodity prices to remain low over the next decade, “Because we just don’t see much of the impetus for demand coming from growing parts of the world.”

Jonathan Brooks heads the annual OECD-FAO Agricultural Outlook report, pointing out that “Over the last 10 years a lot of the increase in demand came from China, where there was increased demand, in particular, for meat. And, therefore, as a consequence of that, for the feed grains to feed the meat. Well, that consumption is already at a fairly high level and we don’t see that continuing over the next 10 years.”

Brooks says demand will also be hit in China by African Swine Fever, but beyond that, “We don’t see any new source of demand that will really replace China on world markets.”

He says extreme weather and trade policies are among the many uncertainties and says it’s important that markets remain open and function smoothly.  Brooks also says trade is essential to food security in so many countries.