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Future Agricultural Dynamics

In: The Handbook of Global Agricultural Markets

Author

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  • Luc Nijs

Abstract

During the last few decades we have been experiencing production surpluses in the developed world and stagnating growth in the developing part of the world — most of it being the result of (intended) policies. It is the policy reforms combined with the economic growth in emerging economies that the world is now and has been experiencing which led to changing patterns in the demand/supply relationships for most agricultural commodities. It has turned the agricultural industry into a market-driven environment ready to accept investments. This has also led to an increase in agricultural trade relations and volumes — a phenomenon the developing nations of the world have been benefiting from most. Despite the technology improvements in the industry, it is likely to experience a decline of productivity in the short to medium term. Although projections conclude that supply should keep track of increasing global demand, the margin is minimal, and therefore it is to be expected that agricultural prices will stay relatively high.

Suggested Citation

  • Luc Nijs, 2014. "Future Agricultural Dynamics," Palgrave Macmillan Books, in: The Handbook of Global Agricultural Markets, chapter 18, pages 469-484, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-30234-2_18
    DOI: 10.1057/9781137302342_18
    as

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