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The fourteenth joint edition of the OECD-FAO Agricultural Outlook provides market projections for major agricultural commodities, biofuels and fish, as well as a special feature on the prospects and challenges of agriculture and fisheries in the Middle East and North Africa.
To feed its 1.2 billion people, China may soon have to import so much grain that this action could trigger unprecedented rises in world food prices. In Who Will Feed China: Wake-up Call for a Small Planet, Lester Brown shows that even as water becomes more scarce in a land where 80 percent of the grain crop is irrigated, as per-acre yield gains are erased by the loss of cropland to industrialization, and as food production stagnates, China still increases its population by the equivalent of a new Beijing each year. When Japan, a nation of just 125 million, began to import food, world grain markets rejoiced. But when China, a market ten times bigger, starts importing, there may not be enough grain in the world to meet that need - and food prices will rise steeply for everyone. Analysts foresaw that the recent four-year doubling of income for China's 1.2 billion consumers would increase food demand, especially for meat, eggs, and beer. But these analysts assumed that food production would rise to meet those demands. Brown shows that cropland losses are heavy in countries that are densely populated before industrialization, and that these countries quickly become net grain importers. We can see that process now in newspaper accounts from China as the government struggles with this problem.
In this 1999 book, Karl Gunnar Persson surveys a broad sweep of economic history, examining one of the most crucial markets - grain. His analysis allows him to draw more general lessons, for example that liberalization of markets was linked to political authoritarianism. Grain Markets in Europe traces the markets' early regulation, their poor performance and the frequent market failures. Price volatility caused by harvest shocks was of major concern for central and local government because of the unrest it caused. Regulation became obsolete when markets became more integrated and performed better through trade triggered by falling transport costs. Persson, a specialist in economic history, uses insights from development economics, explores contemporary economic thought on the advantages of free trade, and measures the extent of market integration using the latest econometric methods. Grain Markets in Europe will be of value to scholars and students in economic history, social history and agricultural and institutional economics.