Global cereal output hits all time high

Cereal production is expected to hit an all time high for 2004 and lead to an increase in cerstocks for the first time in five years.

Global cereal production is expected to hit an all time high for 2004 and lead to an increase in cereal stocks for the first time in five years, the UN Food and Agriculture Organisation announced on Thursday.

HT Image

"Global cereal reserves should increase by the end of the 2004-05 seasons, a positive development for world food security after sharp drawdowns in the past four years," the December issue of the organisation's Food Outlook said.

The Rome-based organisation said that even allowing for an expected increase in global cereal utilization, the expected record 2.04 billion tonne produced in 2004 means that "a significant surplus is expected for the first time since 1999-2000".

World cereal stocks are forecast to rise to 441 million tonne by the close of the 2004-05 season, the agency said.

The bulk of the increase is expected to be in maize, with only a "slight" increase in wheat reserves. In contast, rice inventories are expected to decline.

"Against the background of larger export supplies and improved global stock levels, international prices of wheat and coarse grains are likely to remain under downward pressure during the 2004-05 season," the Food Outlook report said.

"For rice, firmer prices could be expected, mostly as a result of reduced production in several major exporting countries," it added.