OECD-FAO Agricultural Outlook 2023-2032 Report
OECD-FAO Agricultural Outlook 2023-2032 Report
18 July 2023
The latest OECD-FAO Agricultural Outlook 2023-2032 published on July 6th unveils key trends and challenges for global agriculture over the next decade.
One critical finding is the connection between fertiliser costs and food prices. The report posits that a 1% increase in fertiliser prices may result in a 0.2% increase in agricultural commodity prices. This relationship disproportionately affects crops directly utilising fertilisers compared to livestock products, bringing potential implications for global food security.
In terms of consumption, global food intake is predicted to rise by 1.3% annually over the next decade, a slower pace than the previous ten years, attributed to slower population and income growth. Particularly noteworthy is the anticipated expansion of livestock production in low- and middle-income countries, leading to a surge in demand for feed.
The report also foresees a slow growth in demand for first-generation biofuel feedstocks over the next decade, with most of the additional biofuel use of agricultural crops expected to occur in India and Indonesia. This is driven by their increasing transport fuel use and higher biofuel blending requirements.
Importantly, the report suggests that growth in global crop production will primarily come from increased productivity, not expanded land use. This underscores the importance of investing in yield enhancements and better farm management. Similarly, the 1.3% annual growth in livestock and fish production will derive mostly from improvements in per-animal productivity due to more efficient herd and feed management.
Overall, the report emphasises the importance of maintaining investments in technology, infrastructure, and training for sustaining the projected 1.1% annual growth in global agricultural production. It also underscores the need for continued efforts to devise and implement sustainable agricultural practices for the future of global food security.
Read the report here.
TLG Management Partners