June 24, 2004,
as reported by just-food.com: Overproduction
will lead to a long-term drop in agriculture prices
predicts the Organization for Economic Cooperation and
Real prices for agricultural products – corrected
for inflation – are likely to continue to decline
indicates the OECD in its annual agricultural outlook.
The main reason the agency cites is that "global
production of cereals, meats, cheese, sugar and vegetable
oils is set to outpace consumption over the next ten
years." This should moderate growth in trade and
increases in world prices, it says.
Overall consumption of agricultural produce will grow
fastest in South American and Asia, according to the
OECD. It says that world grain output will grow by up
to 17% by 2013.