The United Nations Food & Agriculture Organization’s Agricultural Outlook for 2011-2020 shows a continued trend of rising and volatile food prices spurred on by increased demand in emerging markets. Holding up that strong demand is productivity that is barely keeping pace with the growth in those markets. Population growth in countries like India and China coupled with rising incomes in those emerging middle classes are going to continue putting increased pressure on worldwide production.
So what can we expect as far as food prices as we look toward the future? How do we match production with growth in those emerging markets? Is the projected demand for food as strong as the FAO predicts?
Glen Hodgson seems to think that demand will be even stronger than the FAO predicts. Glen is the Chief Economist with the Conference Board of Canada. He feels that there are a number of factors that have been underestimated in the report. RealAgriculture asked him about the reasons behind that assessment when we spoke to him at the Canadian Food Summit in Toronto, Ontario.
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