OECD-FAO Agricultural Outlook 2007

This is the 13th edition of the Agricultural Outlook and the third time it has been prepared jointly by the Organisation for Economic Cooperation and Development (OECD) and the Food and Agriculture Organisation of the United Nations (FAO). Based on the commodity, policy and country expertise of both organisations, this report forecasts market trends for the world's main agricultural products for the period 2007 to 2016 and includes an evaluation of recent developments and emerging issues. The market projections cover 39 countries and 19 regions, OECD members as well as key non-OECD agricultural producers - such as India, China, Brazil, Russia and Argentina. The projections are based on specific assumptions regarding global macroeconomic conditions, population growth, national agricultural and trade policies, production technologies and average weather conditions. Using the underlying assumptions, the Agricultural Outlook then provides a picture of how agricultural markets could evolve in the coming decade. World agricultural production is projected to continue to grow in the next 10 years, primarily driven by persistent economic growth, particularly in non-OECD areas. World prices of agricultural commodities are expected to attain a higher plateau, sustained by global demand and increased biofuel production. While the rapid development of the biofuel industry underpins projected commodity prices, a variety of factors can alter market developments, such as new production technologies, changes in biofuel policies, or unexpected price changes in crude oil and feedstock prices. The projections and past trends are presented in the report's statistical annex and can be viewed in more detail at www.agr-outlook.org