Latin America and Africa will be leaders in agricultural production in the next decade

The OECD-FAO report, Agricultural Perspectives 2015-2024, announced that Latin America and Africa will lead global growth, with annual rates of 1,8% and 2,4% respectively, over the next ten years.

It also highlights that Latin America and the Caribbean will maintain a leadership in the expansion of global agriculture, thanks to better crop yields and an expansion of the agricultural area.

At a global level, despite robust demand, the possibilities of expanding agricultural production are constrained by factors such as limitations on the expansion of agricultural land, environmental concerns and changes in the political environment.

In contrast, the limitations in terms of land and natural resources are lower in Latin America and the Caribbean, which will allow a greater productive growth as a result of the expansion of the agricultural area and better levels of crop yield.

Oilseeds and coarse grains already predominate in terms of land use in Latin America and the Caribbean, and in response to a strong demand for oilmeals, the area devoted to oilseeds will grow on average by an annual 1,2% during the next decade.

Although a greater proportion of the additional area will be planted with oilseeds, this expansion will not be at the expense of other major crops, since the area planted with coarse grains will also grow 0,7% per year, while the area devoted to wheat will expand 0.6% per year between 2015-2024.

Perspectives for Brazil

This year's Agricultural Perspectives report contains a special focus on Brazil, which is expected to capture most of the expansion of agrifood trade that will come from the growth of import demand, especially from Asia.

The growth of Brazilian agriculture is projected to be driven by continuous improvements in productivity, higher crop yields, some conversion of pastures to arable land and a more intensive production of livestock.

Structural reforms and a reorientation of support for investments that increase productivity, for example in infrastructure, could foster these opportunities, as well as trade agreements that could improve access to foreign markets.

Brazil has made exceptional progress in eliminating hunger and reducing poverty. The prospects for further reductions in poverty through agricultural development are improving for some food crop producers, as well as for producers of higher value products, such as coffee, horticulture and tropical fruits.



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