February 21, 2010

 

World grain demand to rise 20% in nine years

 

 

Total world demand for grain will reach 2.65 billion tonnes in 2020, up about 20% from the average for the three years through 2009, said Japan's Agriculture Ministry.

 

The ministry said population growth in emerging and developing nations is expected to drive demand for grains for human consumption and animal feed. It also cited a surge in demand for biofuel in the US and Brazil.

 

With demand rising faster than production, the ministry expects grain prices to reach an all-time high.

 

The ministry has published its outlook for food demand for the decade ahead since fiscal 2008. In its report last year, the ministry estimated grain demand at 2.58 billion tonnes in 2019. This year, it forecasts demand will rise by 66 million tonnes the following year.