May 7, 2012

FAO expects sharp decrease in 2012 world wheat output
 

The United Nations' Food and Agriculture Organization (FAO) anticipates a steep drop in 2012 global wheat output, especially in Ukraine, the UN News Center reported.

The global wheat production will decrease by 3.6% compared to the same period in 2011 and reach 675 million tonnes. The most dramatic decline in grain production is forecast for Ukraine, followed by Kazakhstan, China, Morocco and the European Union countries, the report reads.

According to FAO forecasts, in 2012 grain harvest will amount to 2,371 million tonnes, while in 2011 it was 2,344 million tonnes. This year is expected to be a record for cereals, just due to increasing production of coarse grains, FAO says.

FAO also stated that the expected decline in grain production coincides with the projected reduction in the total consumption of grain in the procurement season of 2012-2013. A reduction in wheat production is compensated with increasing production of coarse grains, which will be 1,207 million tonnes.