Thursday, May 17, 2007

Cereal production increases, but threats looming

"CEREAL PRODUCTION TO SET A RECORD: World cereal production will likely set a record this year, according to the Food and Agriculture Organization (FAO). Its tentative forecast – released today – estimates an increase of nearly 5 percent over last year. It adds, however, that total supplies will be barely enough to meet increased demand, which has been boosted by fast growth in the biofuels industry. International prices for most cereals have risen significantly and are expected to remain high, FAO says."

This increase in yield comes after a long period of decline, and amidst the threat to world cereal production caused by the imminent threat of Black Stem Rust (see previous posts) and the expansion of biofuel (see previous posts). The outlook is grim.

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