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FAO: Agricultural output growth to keep global food prices low within next 10 years

08.07.2019 13:11 "Agro Perspectiva" (Kyiv) Global demand for agricultural products is expected to grow by 15% within the next 10 years, while agricultural productivity growth is expected to rise slightly faster, causing inflation-adjusted prices of the major agricultural commodities to remain at or below their current levels, FAO says referring to this year edition of the OECD-FAO Agriculture Outlook (an annual report by the Organisation for Economic Co-operation and Development and the UN Food and Agriculture Organization). It is to be admitted, this year edition of the OECD-FAO Agriculture Outlook, presented within Rome, provides a consensus assessment of the 10-year prospects for agricultural and fish commodity markets at national, regional and global levels. «Global agriculture has evolved into a highly diverse sector, with operations ranging from small subsistence farms to large multinational holdings,» FAO Director-General José Graziano da Silva and OECD Secretary-General Angel Gurría write within the Foreword of the report. The Outlook affirms that yield improvements and higher output intensity, driven by technological innovation, will result in higher output even as global agricultural land use remains broadly constant. Direct greenhouse gas emissions from agriculture, meanwhile, are expected to grow by some 0.5% annually over the coming decade (down the 0.7% rate of the past 10years and below the projected output growth rate)- what mean that the carbon intensity is to gradually decline. However, as to the Outlook, new uncertainties are emerging on top of the usual risks facing agriculture. These include disruptions from trade tensions, the spread of crop and animal diseases, growing resistance to antimicrobial substances, regulatory responses to new plant-breeding techniques, and increasingly extreme climatic events. Uncertainties also include evolving dietary preferences in light of health and sustainability issues and policy responses to alarming worldwide obesity growth.

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