Making Sense of Today’s Volatile Markets
FCC Senior Economist JP Gervais discusses the recent trends and volatility in agricultural markets, and what farmers need to do to be successful.
- Some factors contributing to recent agricultural market volatility include:
- the emergence of a middle class in developing countries with middle class food preferences, resulting in a greater demand for animal proteins, dairy products and feed grains
- worldwide population growth increasing the demand for food
- Farmers must prepare to meet increased food demands – according to the U.N. the world needs to increase food production by approximately 70 per cent in the next 40 years.
- Farmers will need to account for slower productivity gains year over year, climate change and the availability of fresh water.
- Canadian farmers are well-positioned to take advantage of all these trends – farmers need to concentrate on boosting productivity and gaining access to emerging markets.
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