Developing World to Become Food Commodity Hub

The Food and Agriculture Organisation (FAO) made the forecast in its annual Agricultural Outlook for 2008 to 2018, which was released yesterday, in partnership with the Organisation for Economic Co-operation and Development (OECD).

As food companies are extending their operations into developing countries, with China, India and Russia being amongst the favorites. While the rationale is to be closer to markets where consumer spending powder will likely mushroom, bringing with it a major shift in eating habits, companies are also likely to find themselves closer to raw material sources.

The outlook says the "the epicenter of global agriculture will more from the OECD countries, towards developing countries" in the next ten years. OECD countries include much of Western Europe, as well as the Czech Republic, Slovak Republic, Poland, Turkey Australia, New Zealand, the US, Canada, Japan, Korea and Mexico.

Both consumption and production are growing faster in developing countries than in developed countries, for all commodities except wheat.

The outlook covers cereals, oilseed, sugar, meats, milk and dairy produce.

Read the full FoodNavigator-USA.com story here.