World Grain Prices to Surge 30 Pct over 10 Years

Tokyo (Jiji Press)- The international prices of wheat, corn and other grains are expected to rise about 30 pct over 10 years due to growing demand, the Japanese government said Friday.
The prices are expected to be 24-35 pct higher in 2020 than the average in 2007-2009, the Agriculture, Forestry and Fisheries Ministry said in an annual outlook report on global food supply and demand.
The ministry attributed the price rises to an anticipated surge in food demand stemming from economic and population growth in Asian emerging countries.
Growing production of biofuel is also projected to contribute to the grain price increases, the ministry said.
Prices are expected to increase 35 pct for corn, 32 pct for soybeans, 31 pct for rice and 24 pct for wheat.
"There is a need to take steps to secure a stable food supply in the medium to long term," the ministry said.
The ministry expects global grain consumption to reach 2.7 billion tons in 2020, up 22 pct from the 2007-2009 average.
Of the total, consumption of feed crops like corn is projected to jump 29 pct as meat consumption is expected to increase due to income growth in emerging economies, while that of crops for bioethanol use is estimated to soar 54 pct.
Consumption of rice, wheat and other grains as food is expected to increase 20 pct.
With production unable to keep pace with consumption growth, the inventory ratio, or the percentage of inventories to the actual amount of consumption, is projected to decline to 15 pct from 20 pct.
The ministry also said prices are expected to rise 32 pct for pork, 34 pct for chicken and 46 pct for beef.