Global Information would like to present a market research report, "Ten year Forecast and Analysis on the International Agriculture Markets" by Doane Advisory Service.
In six of the seven years from 2000 through 2006, world consumption exceeded production and world ending stocks were drawn down. The net deficit during that seven year period was nearly 200 million tonnes. But the balance has been dramatically different during the last three years, including the projections for the current year. Production has exceeded consumption in each of the years, with a net surplus of 130 million tonnes. The question is which recent period will the future look like?
The global recession has probably had a negative impact on foreign grain consumption recently. However, the real key to the turnaround in the grain balance appears to be on the production side. World grain production has increased by about 10 percent since 2006, more than the increase recorded between 1999 and 2006. The increase in production has been triggered by both higher acreage and strong yields.