Real prices for agricultural products – corrected for inflation – are likely to continue to decline over the longer term says the Organisation for Economic Cooperation and Development.

The main cause, indicates the OECD in its annual agricultural outlook, is that “global production of cereals, meats, cheese, sugar and vegetable oils is set to outpace consumption over the next ten years.” This should moderate growth in trade and increases in world prices, it says.

Overall consumption of agricultural produce will grow fastest in South American and Asia, according to the OECD. It says that world grain output will grow by up to 17% by 2013.