April 4, 2007

World grains production seen to increase in 2007 -FAO
 

World output of wheat and other major grains is seen to be up this year after a decline in 2006 driven by big corn crops in South America and the United States, according to a report by United Nations Food and Agriculture Organization (UN-FAO) released on April 3.

World wheat production is forecast to rise 4.8 percent to about 626 million tonnes, due to recovery in some major exporting countries after weather problems last year, said UN-FAO.

Total world cereals output is expected to come in at a record 2,082 million tonnes, up 4.3 percent from 2006 and almost 10 million tonnes above the previous global high in 2004.

The bulk of the increase is expected in corn, with a bumper crop already being gathered in South America, and a sharp increase in acreage expected in the United States, the FAO said, adding that strong US ethanol demand and favourable growing conditions had been driving crops higher.

Coarse grains output is expected to rise 5.6 percent to 1,033 million tonnes.

The most noteworthy recovery is expected in the European CIS (former Soviet Union states) after reduced output last year, it said.

Global rice production is expected to rise 3 million tonnes to 423 million tonnes in milled terms.

The FAO said it expected this year's cereals production in the group of 82 low-income food-deficit countries to remain around the above-average level of 2006 and imports to decline in most regions in the 2006/07 marketing year.