Global Agricultural Market
In July 2017, the United Nations and the Organization for Economic Cooperation and Development (OECD) published the 2017-2026 OECD-FAO Agricultural Outlook. The report predicted many positive developments in the global agricultural market for the next decade. Most important among these were lower food prices, increased productivity and reduced malnutrition.

According to the report, recent government initiatives and market changes are likely to create higher availability of nutritious food; stable food prices; high production rates of maize, meat and dairy; and lower demand for food. This high level of production can be achieved through significantly higher crop yields, using only slightly more land. As demand in developed countries lowers and crop yields increase, developing countries will be able to attain higher-calorie, nutritious diets.

While these predictions suggest a decade of stability for the global agricultural market, they can only be achieved with constant government upkeep and a continued focus on developing nations and environmental impact. According to the UN Food and Agriculture Organization, about one in nine people globally were suffering from chronic undernourishment from 2014 to 2016. Additionally, many of the production techniques in developing countries are beginning to deplete natural resources. Consequently, creative and sustainable production and trade practices need more attention in order to improve food access and alleviate pressure on natural resources.

Although the Agricultural Outlook report focuses on the global agricultural market, the end of the report looks particularly at sustainability issues in Southeast Asia. The region had a significant amount of economic growth in the past few years, primarily due to the booming agriculture and fish sectors. This growth helped address undernourishment in the area.

However, such immense growth in these sectors put a significant amount of strain on the environment. Because of this, the next decade will require a scaling-back of the fishing and palm-oil exports from the region. According to the report, “improved resource management and increased [research and development] will be needed to achieve sustainable productivity growth.” For example, the report suggests expanding the rice industry to promote diversification.

Essentially, the report states that while the global agricultural market is looking towards a period of stability and low cost, maintaining this requires a watchful eye. OECD Secretary-General Angel Gurría stated, “unexpected events can easily take markets away from these central trends, so it is essential that governments continue joint efforts to provide stability to world food markets.”

Julia Morrison

Photo: Flickr