Cheap Food Seen as Bygone Era by FAO and OECD

The outlook for agriculture through 2022, from the Organization of Economic Cooperation and Development and the UN’s Food and Agriculture Organization, indicates that a period of low prices for farm goods is over. High energy prices, falling growth in productivity and rising demand is already leading to higher prices. Even as population growth slows in the next decade, the world is predicted to have an additional 742 million people to feed by 2022. Likewise, growth of agricultural production is predicted to slow by an average of 1.5 percent a year through 2022. With a higher demand and lower supply, prices will increase even more. The OECD and the UN suggest that higher may lead to profits and additional investment in agricultural production and technological enhancements. Measures to reduce food loss and waste could also help meet rising demand and increase productivity. The two organizations warn there may be more risk with price rises than prices falls. – YaleGlobal