World Grain Supplies Will Barely Meet Demand Despite Record Harvests Forecast for 2007

World cereal production is forecast to reach a record high in 2007, and food analysts anticipate that total supplies will be barely adequate to meet increased demands. Over the past several years, grain harvests have consistently fallen short of consumption. This has reduced our carry over stock, which is at its lowest level since the 1980's. International cereal prices have risen to their highest levels in a decade, creating concern for low income food deficit countries and hunger hotspots like Sub-Saharan Africa. One of the reasons for this is the rapidly expanding biofuels industry, and also because of the growth in the food and feed sectors. Biofuel markets have caused a increase in the price of corn, which indirectly boosts the price of other cereals, particularily wheat.


http://www.earthtrends.wri.org/updates/node/201


Chris Olson