prospects for world agriculture baseline projections to 2014
DESCRIPTION
Prospects for World Agriculture Baseline Projections to 2014. Ronald Trostle Economic Research Service U.S. Department of Agriculture Foro de Perspectiva Agroindustrial, 2005 27 y 28 de Julio, 2005. Buenos Aires, Argentina. Presentation Outline. Summary of projections Main assumptions - PowerPoint PPT PresentationTRANSCRIPT
Prospects for World AgricultureBaseline Projections to 2014
Ronald TrostleEconomic Research Service
U.S. Department of Agriculture
Foro de Perspectiva Agroindustrial, 2005 27 y 28 de Julio, 2005. Buenos Aires, Argentina
28 July, 2005 Prospects for World Agriculture: USDA/ERS
Presentation Outline
• Summary of projections
• Main assumptions
• Developments influencing world agriculture
• Projections for farm commodities
• Uncertainties
• Conclusion
28 July, 2005 Prospects for World Agriculture: USDA/ERS
USDA Baseline Projections
• 10-year projections for major farm commodities - Supply, demand, trade, and prices.
• Projections based on:- Economic models
> Crop-area allocation model - for the USA> Models for individual commodity markets in the USA> Linked Country Model (“Linker”) ( Links 23 commodity markets in 39 countries & regions )
- Analysis and judgments by commodity analysts, country analysts and policy analysts.
• Assumptions: - Basline projections based on many assumption- The baseline is not a forecast; but a projection of what might occur under a specific set of assumptions
• Projections made November, 2004.
28 July, 2005 Prospects for World Agriculture: USDA/ERS
80
100
120
140
160
180
200
1975 1980 1985 1990 1995 2000 2005 2010 2015
Production
Yield
Area Harv
Percap Use
Population
Index: 1975 = 100
Peak
Peak
Total World Grain & Oilseeds1 Area, Yield, Production, & Percap Consumption; and Population
Exponential trendgrowth rates: 1975-95 95-04 06-14Prod 1.6 0.7 .09Yields 1.8 1.3 0.8Area -0.26 -0.59 0.11Percap Use 0.08 -0.04 -0.18Populatio 1.68 1.23 1.05
1 Total oilseeds = soybeans + rapeseed + sunflowers
28 July, 2005 Prospects for World Agriculture: USDA/ERS
100
150
200
250
300
1975 1980 1985 1990 1995 2000 2005 2010 2015
Global Meat1
Production & Percap Consumption; and Population
Index: 1975 = 100
Per capita Consumption
Population
Production
1Meat = Beef + Pork + Poultry
28 July, 2005 Prospects for World Agriculture: USDA/ERS
Main Assumptions
28 July, 2005 Prospects for World Agriculture: USDA/ERS
-5
-3
-1
1
3
5
World Developed UnitedStates
EU-25 FSU Developing
1971-80 1981-90 1991-2000 2001-14
Strong Economic GrowthGDP growth rates, by decade averages
Percent
Source: USDA Agricultural Baseline Projections to 2014, February 2005.Economic Research Service, USDA.
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
1
2
3
4
1970's 1980's 1990's (2002-2014)
Population Growth Rates Decline (Percent by Decade)
Percent
Developed
World
MiddleEast
AsiaDeveloping
Latin America
Africa
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
5
10
15
World Developed United States Developing
1971-80
1981-90
1991-2000
2001-14
Inflation Rates Generally Decline
Percent
28 July, 2005 Prospects for World Agriculture: USDA/ERS
60
80
100
120
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
U.S. Dollar Projected to Strengthen1
Index values: 2000=100
1/ Real U.S. agricultural trade-weighted dollar exchange rate, using U.S. agricultural export weights.
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
5
10
15
20
25
30
35
40
45
1990 1995 2000 2005 2010 2015
Crude Oil Prices
$ per barrel
Refiners' acquisition cost of crude, imports
Refiners' acquisition cost, adjusted for inflation
28 July, 2005 Prospects for World Agriculture: USDA/ERS
Policy Assumptions
• Domestic agricultural and trade policies in most countries either do not change, or they continue to evolve along their current path.
• All countries fully comply with all existing bilateral and multilateral agreements.
28 July, 2005 Prospects for World Agriculture: USDA/ERS
Other Global Influences
• Technical developments enhance productivity:- Biotechnology increased farm productivity- Developments in transportation, processing, energy use- Increased availability of data and information
• Globalization: Markets more integrated from farm to table.• Environmental Policy: Will influence farm production.• Renewable energy: Will reallocate production resources.• Food Safety: Will affect production, processing &
marketing.• New producers exporting to niche markets: Will mean
increased competition. • Aging World Population: Will change eating habits.
28 July, 2005 Prospects for World Agriculture: USDA/ERS
Changes in Food Consumption
• Greater consumption of:- Fruits & Vegetables- Vegetable Oils- Processed Cereal Products- Meats & Dairy Products
• Less consumption of:- Staple grains - rice in Asia, corn in Mexico & Africa- Low-quality grain varieties (switching to higher quality)
(high-quality varieties may have lower yields)
- Roots & tubers • Feed demand increases:
import demand for feed grains & protein meals
28 July, 2005 Prospects for World Agriculture: USDA/ERS
Oilseeds, Grains and Cotton
28 July, 2005 Prospects for World Agriculture: USDA/ERS
50
75
100
125
150
175
1984 1989 1994 1999 2004 2009 2014
Global trade: Wheat, Coarse Grains, and Soybeans & Soybean products
Million metric tons
Soybeans and soybean products 1/
Coarsegrains
1/ Soybeans and soybean meal in soybean-equivalent units.
Wheat
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
20
40
60
80
100
84/85 89/90 94/95 99/00 04/05 09/10 14/15
S. American Exports: Grain & Soybeans
Million metric tons
Oilseeds
Rice
Coarse grains
Wheat
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
20
40
60
80
100
1985 1990 1995 2000 2005 2010
0
2
4
6
8
10
12
14
16
Global exports: Soybeans, soybean meal, and soybean oil
Soybeans and soybean meal, million metric tons
Soybeans
Soybean meal
Soybean oil
Soybean oil, million metric tons
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
10
20
30
40
50
60
70
80
90
100
1990 1995 2000 2005 2010
Other
China & Hong Kong
N. Africa & M. East
L.Amer & Mexico
East Asia
European Union 1/
Global Soybean Imports
Million metric tons
1/ European Union-15 prior to 1999, EU-25 thereafter. Excludes intra-EU trade.
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
10
20
30
40
50
60
70
1990 1995 2000 2005 2010
Other
FSU & OE 1/
N. Africa & Middle East
L. America & Mexico
East Asia
European Union 2/
Global soybean meal imports
Million metric tons
1/ Former Soviet Union and Other Europe; prior to 1999, includes Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia.2/ European Union-15 prior to 1999, EU-25 thereafter. Excludes intra-EU trade.
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
2
4
6
8
10
12
14
1990 1995 2000 2005 2010
Rest of w orld
Other Asia 1/
India
China
N Africa & Middle East
Latin America 2/
Global soybean oil imports
Million metric tons
1/ Asia less India and China. 2/ Includes Mexico.
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
20
40
60
80
100
120
140
160
180
89/90 94/95 99/00 04/05 09/10 14/15
Global Exports of Soybeans & Products1
Million metric tons
Brazil
United States
Argentina
Other
1Soybeans + bean equivalent of soymeal.
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
20
40
60
80
100
120
1994 1999 2004 2009 2014
China
Other
S & SE Asia 1/
Latin Am 2/
NAFTA
Afr & M East
East Asia
Global Corn Imports
Million metric tons
1/ Includes Oceania. 2/ Excludes Mexico which is part of NAFTA.
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
3
6
9
12
15
1985 1990 1995 2000 2005 2010 2015
0
3
6
9
12
15
China: Corn Imports and Exports
Million metric tons
Exports
Imports
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
20
40
60
80
100
1985 1990 1995 2000 2005 2010
Other 1/
China
Argentina
United States
Global Corn ExportsMillion metric tons
1/ Republic of South Africa, Brazil, EU, former Soviet Union, and others.
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
25
50
75
100
125
150
175
200
1985 1990 1995 2000 2005 2010
Other 1/ FSU & OE 2/ China Africa & Middle East NAFTA Latin America East Asia European Union 3/
Global Wheat Imports
Million metric tons
1/ Predominantly South and Southeast Asia. 2/ Former Soviet Union and Other Europe; prior to 1999, includes Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia.3/ European Union-15 prior to 1999, EU-25 thereafter. Excludes intra-EU trade.
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
25
50
75
100
125
1985 1990 1995 2000 2005 2010
United States
FSU & OE 1/
Argentina
Australia
Canada
Other
European Union 2/
Global Wheat Exports
Million metric tons
1/ Former Soviet Union and Other Europe; prior to 1999, includes Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia.2/ European Union-15 prior to 1999, EU-25 thereafter. Excludes intra-EU trade.
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
10
20
30
40
1974 1979 1984 1989 1994 1999 2004 2009 2014
China
South Asia 3/
Southeast Asia 2/
Other
Latin America 1/
East Asia
EU, FSU, & OE 4/
Global Cotton Imports
Million bales
1/ Includes Mexico. 2/ Malaysia, Philippines, Thailand, and Vietnam.3/ Bangladesh, India, and Pakistan. 4/ European Union, former Soviet Union, and Other Europe.
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
10
20
30
40
1985 1990 1995 2000 2005 2010
Other
Former Soviet Union
South America
Australia
Sub-Saharan Africa
United States
Global Cotton Exports
Million bales
28 July, 2005 Prospects for World Agriculture: USDA/ERS
Livestock and Meats
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
1
2
3
4
5
6
1984 1989 1994 1999 2004 2009 2014
North Africa & Middle East European Union 2/ Russia East Asia NAFTA
Beef and Veal Imports: Major Countries1
Million metric tons
1/ Selected importers.2/ European Union-15 prior to 1999, EU-25 thereafter. Excludes intra-EU trade.
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
1
2
3
4
5
1985 1990 1995 2000 2005 2010
United States Mexico Russia China East Asia
Pork Imports: Major Countries1
Million metric tons
1/ Selected importers.
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
1
2
3
4
5
1985 1990 1995 2000 2005 2010
East Asia
China
Russia
Saudi Arabia
EU 2/
Mexico
Poultry Imports: Major Countries1
Million metric tons
1/ Selected importers.2/ European Union-15 prior to 1999, EU-25 thereafter. Excludes intra-EU trade.
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
4
9
13
17
21
26
1984 1989 1994 1999 2004 2009 2014
Meat Exports from Major Exporters
Million metric tons
Beef & veal
Pork
Poultry
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
1
2
3
4
5
6
7
8
1975 1980 1985 1990 1995 2000 2005 2010 2015
S. Amercia: Meat Exports
Million metric tons
Poultry
Pork
Beef
28 July, 2005 Prospects for World Agriculture: USDA/ERS
Uncertainties - General
• Economic growth: Will it be less rapid than projected?
• Energy prices: Will petroleum & natural gas prices drop from current highs -- or rise even further? What will be impact on fertilizer and fuel costs?
• Diseases: Will Avian influenza, BSE, FMD and Asian rust spread to other countries?
• Supply response: How fast can world ag production respond to future shocks in production?
• Additional crop land: How much can be brought into production -- on a sustainable basis?
• Water shortages: Agriculture competition with residential, commercial and industrial demand?
28 July, 2005 Prospects for World Agriculture: USDA/ERS
Uncertainties - Country Specific
• Argentina: Expansion in crop area? Productivity growth? Expansion in cattle feed-lot sector?
• Brasil: Expansion in crop area? Infrastructure improvements (transportation & on-farm storage)?
• China: Becomes a net corn importer? Soybean imports continue to rise? Possible revaluation of Yuan? Water shortages constrain farm production?
• Eastern Europe: Becomes the bread basket for Europe and a major exporter?
• Asian Rice Consumption: Trend in per capita consumption continues to decline?
28 July, 2005 Prospects for World Agriculture: USDA/ERS
Conclusions
28 July, 2005 Prospects for World Agriculture: USDA/ERS
0
1
2
3
4
5
6
7
8
1984 1989 1994 1999 2004 2009 2014
Farm Prices1
Corn, Wheat, and Soybean
$ per bushel
Corn
Wheat
Soybeans
1Nominal U.S. farm prices
28 July, 2005 Prospects for World Agriculture: USDA/ERS
30
40
50
60
70
80
90
1994 1999 2004 2009 2014
Livestock Prices1
$ per hundredweight
Beef cattle
Broilers
Hogs
1Nominal U.S. prices
28 July, 2005 Prospects for World Agriculture: USDA/ERS
Conclusions
• Demand: Strong income growth in developing countries and increasing population increases import demand for bulk commodities and high-value products.
• Production: Slower producivity growth, but still nearly sufficient to maintain global level of per capita production.
• Trade: Continued growth in global trade in most agriculture commodities. But trade continues to be very competitive.
• Prices: Prices for farm products, after adjusting for inflation, will decline more slowly than in past decades.
Prospects for World AgricultureBaseline Projections to 2014
USDA-ERS baseline briefing room
http://www.ers.usda.gov/briefing/baseline
Gracias, Obrigado, y Thank you
Ronald TrostleEconomic Research Service
U.S. Department of Agriculture