OECD-FAO sees end to high agricultural commodity prices but wary of price swings
The Organisation for Economic Cooperation and Development (OECD) and the Food and Agriculture Organization said the recent period of high agricultural commodity prices may be over but urged nations to be vigilant as the probability of price swings remain high.
The OECD and the FAO collaborated on the Agricultural Outlook 2016-2025 that put together their respective commodity, policy, and country experts to provide an assessment of medium-term prospects of national, regional, and global agricultural commodity markets, providing supply, demand, trade, and price estimates for 41 countries and 12 geographical regions.
The Agricultural Outlook 2016-2025 sees an end to high agricultural commodity prices because of efficiency gains in production that will enable production growth at lower real prices.
It expects slowing population growth to limit increases in food demand, with emerging economies experiencing a gradual saturation of consumption.
And while global undernourishment is expected to decline further, consumption of sugar and fats are expected to increase. Global food exports are also expected to remain highly concentrated with resource poor regions increasing their food imports.
The OECD-FAO projections in the Agricultural Outlook are based on fundamental market trends and its assumptions are subject to uncertainties.