AGRICULTURE NEWS - One of the report’s major findings was that inflation-adjusted prices (real prices) of the major agricultural commodities would remain at or below their current levels over the next decade as productivity growth will outpace demand growth.

Most of the commodities covered in the outlook were expected to see real price declines over the coming decade of around 1% to 2% per year.

Prices for beef, lamb and mutton were expected to decline even more, and the only commodities that were likely to see an increase in real prices were vegetable oil and skim and whole milk powder.

This might be good news for consumers, but depressed food prices will put pressure on the incomes of farmers who are not lowering their costs sufficiently through improved productivity.

A low-price environment could thus lead to increasing demands for support to farmers, the report stated.

Read the full article here on the Caxton publication, Farmer's Weekly.