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Posted Fri Jun 17 2011: from IRIN:
FOOD: High prices do not mean a bigger supply
Contrary to popular perception, the current high food prices will not see more money flowing into agriculture in the long term, warned a new forecast released ahead of a critical meeting of agriculture ministers in Paris on 22 and 23 June. "Input costs, including that of fuel and fertilizer, have risen significantly - we anticipate global agriculture production to slow down in the next decade," said Meritt Cluff, a senior economist at the UN Food and Agriculture Organization (FAO) and one of the authors of the Agricultural Outlook 2011-2020.... Besides the cost of agricultural inputs, pressure on resources such as water and land, and the higher risk of adverse weather are also contributing to the slow-down in food production.... "Throughout the world, but especially in low-income countries, the poor are overwhelmingly net food buyers, so poverty increases as food price levels rise - but losses due to food price volatility fall mainly on relatively better-off large farmers, Barrett said. "Perhaps not coincidentally, these same large farmers enjoy tremendous taxpayer-funded support programmes from G20 governments presently expressing concern about food price volatility."
[Read more stories about: corporate farming, poverty, food crisis]

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