Record global grain harvests ends fears of volatile prices – Think Tank
Britain’s Overseas Development Institute (ODI) stated in a recent report that a repetition of the food riots of 2008 are unlikely to reoccur because of a surprising increase in cereal production in developing countries. Global grain production has risen more rapidly since 2008 than in the period of 2000 – 2007. Cereal production in developing countries has increased 240 million tons since 2008 pushing total global cereal production to a record 2.16 billion tons in 2013/14. East Asia increased its cereal production by 100 million tons since 2008, Latin America increased its production by 38 million tons, and sub-Saharan Africa increased its cereal production by 24 million tons since 2008 – an increase three times greater than in the previous seven years. Prices are expected to stabilize at levels higher than before 2008 but lower than recently seen levels which will help developing net grain importing countries such as Egypt and Mexico. The ODI states that the increase in production is due to more efficient farming methods producing better yields, farmers responding to higher prices, national and international investment in wheat, maize and rice production, and a G8 pledge made in 2009 to supply $22 billion to fund improvements in agriculture and food security in developing countries.
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