OECD sees agriculture prices rising off lows<\/p>\n
BRUSSELS (Reuters): Global agricultural markets are set to
\nemerge from a prolonged downturn, which has seen many commodities
\nhit historic lows, as broad-based economic growth lifts prices
\nover the next five years, the OECD said on Friday.<\/p>\n
In its yearly Agricultural Outlook 2001-2006, the Paris-based
\nOrganization for Economic Cooperation and Development (OECD)
\npredicted some meats and dairy products would benefit more than
\ncereals and oilseeds over the period.<\/p>\n
Beef prices in Europe would continue to be pressured by the
\nhealth scare associated with mad cow disease, and lower demand
\nfor red meat meant output needed to be trimmed, the OECD said.<\/p>\n
But worldwide economic expansion, particularly in developing
\ncountries, would cause demand for farm products to exceed
\nproduction and lead to lower stocks and higher prices.<\/p>\n
\"A growing world economy and population over the medium term
\nsupported by more broadly-based economic growth in the OECD area
\nand continuing fast recovery of Asia, Latin America and Russia
\nfrom the financial turmoil of the late 1990s, will lead to a
\nmarket turnaround,\" the OECD report predicted.<\/p>\n
\"Demand will expand more rapidly in developing countries aided
\nby increased spending power, urbanization, improving diets and
\nhigher population growth.\"<\/p>\n
As demand increased, production of agricultural commodities
\nwould rise too, although not quite at the same pace.<\/p>\n
Livestock products and feedstuffs were expected to take a
\nbigger share of total production at the expense of food grains.<\/p>\n
Non-OECD countries would account for the bulk of the increase
\nin production, but that will be insufficient to meet higher
\nconsumption patterns, and more imports would be needed from OECD
\ncountries, the report said.<\/p>",
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