Livestock feed to overtake biofuel in grain demand growth: FAO/OECD

Friday, 3 July 2015 00:10 - - {{hitsCtrl.values.hits}}

PARIS (Reuters): Livestock feed will surpass biofuels as the main source of growth in global grain consumption in the next 10 years as emerging countries consume more animal protein while lower oil prices and policy changes end a decade of high demand for crop-based biofuel, the FAO and OECD said on Wednesday.

In their annual Agricultural Outlook report, the United Nations Food and Agriculture Organisation and the Organisation for Economic Cooperation and Development confirmed a broad trend already projected last year of more moderate food commodity prices due to production gains and less vigorous demand.

Prices of all major agricultural products are set to decrease in real terms over 2015-2024, although they will remain above levels seen before a surge in 2007-2008 that heralded a period of high volatility, the report said. Within the overall picture of more restrained markets, partly due to tepid economic growth, a dietary shift towards animal protein in emerging countries will help meat and dairy prices outperform crop prices and make livestock feed the main impetus for extra demand in cereals and oilseeds.