February 22, 2013
World grain production falls by 114 billion tonnes in 2012
International grain output has declined by 114 billion tonnes in 2012, according to US grain market expert Dan Basse.
Mr Basse, who is president of Chicago-based AgResource Company, said the world had witnessed its largest fall in annual grain production in history as a result of diverse weather conditions.
The number of harvestable hectares per head of population was in decline, although the growth of grain production in 'non traditional' countries such as India had 'helped the world avert a crisis', added Mr Basse. China would import rice this year for the first time, he said.
If climatic conditions this season were 'normal', grain prices would start to decline in June/July, he said.
Growers in the US were wishing for drought again this year as the country's new farm insurance scheme had seen many farmers receiving hefty pay cheques from the US Government for their failed crops.