food prices march 2012 update annual review april 2011 to ... · wheat exports from russia are...

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Page 1 of 33 April 16 2012 Food Prices March 2012 update & Annual Review April 2011 to March 2012 Landmarks of the last year: April 2011 to March 2012 International prices for maize and wheat fell for most of the last year, owing to reasonably good harvests. Rice prices, in contrast, have risen a little over the last year, since some harvests have disappointed, while there is uncertainty over Thai policy for rice. The Annual Review in this bulletin looks at how cereals markets have evolved since the 2007/08 price spike. The lasting change seen concerns maize, for which 2011/12 was an extraordinary year: For the first time, more US maize went to distilleries than to feed animals, as prices increasingly correlate with oil prices; China has started to import large amounts of maize for animal feed. Consequently, maize stocks are at their lowest since 1973/74, a year that saw a dramatic spike in commodity prices. If any significant maize harvest fails in 2012, there would probably be a sharp spike in maize prices that would in turn drag up wheat prices as some feedlots switched to that grain. Production of maize and wheat have, however, responded strongly to higher prices since 2006, mainly by increasing yields. The surprise, however, is the relatively weak response of rice production to higher prices reflected in rice prices remaining some US$200 a tonne more than in 2006 before the spike.

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Page 1: Food Prices March 2012 update Annual Review April 2011 to ... · Wheat exports from Russia are predicted to exceed 20M tonnes in 2011/12; a sharp contrast from the less than 4M tonnes

Page 1 of 33

April 16

2012

Food Prices March 2012 update & Annual Review April 2011 to March 2012

Landmarks of the last year: April 2011 to March 2012

International prices for maize and wheat fell for most of the last year, owing to reasonably good

harvests.

Rice prices, in contrast, have risen a little over the last year, since some harvests have

disappointed, while there is uncertainty over Thai policy for rice.

The Annual Review in this bulletin looks at how cereals markets have evolved since the

2007/08 price spike. The lasting change seen concerns maize, for which 2011/12 was an

extraordinary year:

For the first time, more US maize went to distilleries than to feed animals, as prices

increasingly correlate with oil prices;

China has started to import large amounts of maize for animal feed.

Consequently, maize stocks are at their lowest since 1973/74, a year that saw a dramatic spike

in commodity prices. If any significant maize harvest fails in 2012, there would probably be a

sharp spike in maize prices that would in turn drag up wheat prices as some feedlots switched

to that grain.

Production of maize and wheat have, however, responded strongly to higher prices since 2006,

mainly by increasing yields. The surprise, however, is the relatively weak response of rice

production to higher prices — reflected in rice prices remaining some US$200 a tonne more

than in 2006 before the spike.

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Page 2 of 33

Contents

Landmarks of the last year: April 2011 to March 2012 ........................................................................................... 1

RECAP FROM THE EARLIER UPDATES ........................................................................................................................................ 3

KEY DEVELOPMENTS SINCE FEBRUARY 2012 ......................................................................................................................... 3

Cereals prices .................................................................................................................................................................3

Maize and wheat prices ....................................................................................................................................3

Rice prices ..............................................................................................................................................................5

Harvest prospects ........................................................................................................................................................5

Southern Hemisphere wheat and maize ...................................................................................................5

Winter wheat ........................................................................................................................................................6

New maize planting ...........................................................................................................................................7

Rice ...........................................................................................................................................................................7

IMF commodity indices: commodity price resurge? .....................................................................................7

FAO food price indices ...............................................................................................................................................8

Food crises .................................................................................................................................................................................. 9

Annual review, April 2011 to end March 2012......................................................................................................... 12

Last year in brief .................................................................................................................................................................... 12

Emerging trends since the price spike of 2007–08 ................................................................................................. 12

Supply response: reacting to higher prices ................................................................................................................ 12

Perspectives from the long and medium terms ............................................................................................ 12

Response to the price spike of 2007/08 ...................................................................................................................... 15

Higher maize prices: so more use of other feeds for livestock? ............................................................. 16

Annex 1 Maize, rice, wheat — latest annual projections from USDA .............................................................. 20

Annex 2 Stocks — where are they now, compared to historical distribution & levels ............................ 21

Annex 3 Maize, rice, wheat, and cassava – production and area harvested ................................................. 23

Maize production, area, and yield figures .................................................................................................. 24

Rice production, area, & yield figures .......................................................................................................... 26

Wheat production, area, & yield figures ..................................................................................................... 28

Cassava production, area, and yield figures .............................................................................................. 30

Annex 4 Cereals used for animal feed, 1990/91 – 2011/12 ............................................................................... 32

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RECAP FROM THE EARLIER UPDATES

International maize and wheat prices rose sharply from mid 2010, driven largely by poorer

than hoped for harvests and strong demand, particularly for maize to make ethanol, then fell

back from early 2011 since the main harvests of 2011 were good;

Rice prices were high in 2011 owing to flood losses in Thailand and concern over the impact

of Thai policies on exports from that country;

High maize prices have seen the premium paid for wheat over maize cut to slim margins. In

more than a century, the current margin of under 8% has only been lower in nine years.

Stocks of both wheat and rice are being rebuilt, sufficient to cope with modest harvest

failures in the near future. Maize, however, is the exception, thanks to demand for biofuel

and feed in China outstripping production increases. Consequently maize stocks are low, at

less than 15% of use: not enough to withstand a harvest failure without a spike in maize

prices.

KEY DEVELOPMENTS SINCE FEBRUARY 2012

Cereals prices

Figure A International cereals prices, nominal, Jan 2005 – March 2012

Source: With data from FAO ESC. Note: Prices are weekly to week ending April 6, 2012. The last 6 weeks are new for this update

Maize and wheat prices

Since the last update in February 2011, maize and wheat spot prices have risen slightly, most

recently at US$283 and US$296 a tonne, respectively: see Figure B. Futures prices, see Figures C

and D, are about US$30 a tonne less than spot prices for maize, and US$60 a tonne less than spot

prices for wheat. They have changed little since the New Year.

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Page 4 of 33

Figure B Focus on last financial year for US maize and wheat prices

Source: With data from FAO ESC. Note: Prices are weekly, from week ending Apr 1st 2011 to week ending Apr 6th, 2012

Figure C CBOT Corn Futures: US cents/bushel, 12 months to April 9, 2012

Source: BBC Market data. US$/tonne added

Figure D CBOT Wheat Futures: US cents/bushel, 12 months to April 9, 2012

Source: BBC Market data. US$/tonne added

Maize prices are kept high by strong demand from the US for ethanol feedstock, and from China

for all uses, especially animal feed.

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Maize, US No.2 Yellow

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643¢/bushel = US$236/tonne 800¢/bushel = US$294/tonne

600¢/bushel = US$220/tonne

786¢/bushel = US$309/tonne

649¢/bushel = US$255/tonne

590¢/bushel = US$232/tonne

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Latest stock-to-use ratios estimated for maize are down to 14.1% globally, from an already low

14.7% in 2010/11.1 This is lower than the 15.2% seen in 2006/07 going into the food price

spike of 2007/08. See figures in Annex 1.

Rice prices

Over the last six weeks, rice spot prices have moved little: see figure E. Thai A1 Super is US$544

per tonne, while Thai 100% B is US$566 per tonne. Both are good quality grades. Cheaper

quality grades are trading at about US$120 per tonne lower.2

Heavy losses to flood damage in October 2011 in Thailand contributed to price rises, though

they were already on the way up, driven by concern over Thai government policy. Rice prices

have also been pushed up by delays to exports in Indian ports3, below par harvests in Indonesia

and the Philippines, and by unexpectedly high demand from China.4 (IGC, April 2012)

Figure E Focus on last financial year for Thai rice prices

Source: With data from FAO ESC. Note: Prices are weekly, from week ending Apr 8th 2011 to week ending Apr 6th, 2012

Harvest prospects

Southern Hemisphere wheat and maize

The news from Australia continues to encourage, with 2011/12 harvest estimates for wheat at

29.5M tonnes for 2011/12, up from the record 28M tonnes achieved in 2010/115. Australia is

also holding large stocks of wheat6.

Argentine wheat production for 2011/12 is estimated at about 14M tonnes, down about 5%

on the previous 5 year average, but not as poor as feared.

Maize is a different story in Argentina, with heavy harvest losses to dry weather feared. Only

27% of Argentine maize was harvested by early April 2012, so estimates from Bolsa de Cereales

1 USDA figures: revisions to the 2010/11 WASDE estimates mean that the global maize stock-to-use ratio estimated in April

2012 has fallen from the February 2012 estimate of 15.3% 2 IGC reported Vietnamese 5% broken rice, and Pakistan IRRI 25% March prices at US$435 and US$410 per tonne

respectively. 3 'Amid logistical difficulties at India’s ports, renewed buying interest underpinned solid gains in Pakistan, while big

purchases by China and the Philippines supported increases in Vietnam.' IGC, April 2012 4 USDA projected China would be a net exporter of 120k tonnes of rice for 2011/12, but the latest figures [April WASDE]

were revised to project China as a net importer of 500k tonnes of rice. China is expected to import 1M tonnes of milled rice in 2011/12, double the year before — the highest since 1994/95, when they were close to 2M tonnes. 5 Estimate for 2011/12 from March 2012 ABARES report

6 See Annex 2 for distribution of maize, rice, and wheat stocks by region. Australian statistics appear in Oceania

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Page 6 of 33

are not yet available. USDA has however revised its estimate for Argentina’s maize production

progressively downwards since the start of the year, from 29M to 22M to 21.5M (as at April

2012). Not disastrous, but disappointing considering the large area planted to maize in

Argentina for 2011/12 — 3.6M hectares.7 Yield per hectare is expected to be only 6 tonnes per

hectare, the lowest since 2000/01, well below the previous 5 year average of over 7 tonnes per

ha.

Exports of 14M tonnes are expected: below the 16M tonnes exported in 2010/11, and the 16.5M

tonnes in 2009/10; but only 600k tonnes below the previous 5-year average of 14.6M tonnes

(USDA FAS & WASDE April 2012 data).

Winter wheat

In Russia, where drought dramatically

reduced wheat production in 2010/11,

latest estimates for 2011/12 are much

improved:8 up from 41.5M tonnes in

2010/11 to 56.2M tonnes in 2011/12, an

increase of about 35%. For the Former

Soviet Union region as a whole — that is

largely Kazakhstan, Russia and the Ukraine

— wheat harvests are expected to rise by

41% over last year: See figure F.

Observers had hoped this production

would be even better in 2011/12, however

weather has not been entirely cooperative.

Nonetheless, the harvests predicted are

almost as high as the levels reached in

2008/09 and 2009/10 — 8% above the

previous 5-year average for Russia, and

17% above the previous 5-year average for

the FSU as a whole.

Figure F Production and exports in Russia and the Former Soviet Union 2000/01 to 2011/12

Source: With data from USDA FAS

Wheat exports from Russia are predicted to exceed 20M tonnes in 2011/12; a sharp contrast

from the less than 4M tonnes exported in 2010/11 when exports were banned.

In the EU, a relatively good harvest is expected in spite of some drought damage, with USDA

estimating EU wheat harvests to rise about 1.3% from 2010/11 to 2011/12.

Elsewhere, prospects for winter wheat also appear favourable, with most US crops reportedly in

good condition, especially for wheat in Kansas and Oklahoma, the largest wheat states.9

Overall, prospects for less than hoped-for production in Europe and the Black Sea region are

offset by better prospects of a good winter crop in the US (IGC).

7 Since 1960, in only 2 years did Argentina devote more area to maize —1969/70 and 1970/71

8 Bloomberg, April 11, 2012 Wheat Seen Declining as Stockpiles Expand to Record: Commodities

http://www.bloomberg.com/news/2012-04-10/wheat-seen-declining-as-stockpiles-expand-to-record-commodities.html 9 Bloomberg, April 9, 2011 U.S. Corn Seeding Speeds Up as Warm Weather Aids Fieldwork.

http://www.bloomberg.com/news/2012-04-09/u-s-corn-seeding-speeds-up-as-warm-weather-aids-fieldwork-1-.html

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Page 7 of 33

India continues to allow unrestricted exports of wheat. A 650k tonne export restriction on

wheat flour exports, was lifted with effect from April 1st (IGC, April 2012).

New maize planting

US maize is being planted at a record pace owing to clear weather in the Midwest, so that the

largest area since 1944 is expected to be planted.10

This may offset the principle fear over cereals: the very low stocks currently held, with a ratio of

use of around 14%. If the large area planted in the US grows well, then there may be room for a

modest rise in maize stocks (IGC, 2012) 11 — see Figure G.

Figure G Maize stock-to-use ratios

Source: From IGC, April 2, 2012

Rice

The good news is that India, expecting a

bumper crop in 2011–12, continues to

allow exports of non-basmati rice.

Since India exports rice at lower prices

than Thailand, albeit for lower quality

grades, this may reduce Thai exports.

These may in any case be limited by

public schemes to support domestic

prices for growers, that may see Thai

rice stock-to-use ratios to rise from

55% in 2010/11 to 90% in 2011/12,

see Figure H, according to USDA.

Globally, the rice stock to use ratio is

expected to be slightly up in 2011/12.

Figure H Rice stock-to-use ratios: 2000/01 to 2011/12

Source: From USDA FAS data

IMF commodity indices: commodity price resurge?

Prices of most commodities peaked in February to March 2011, ending a surge that began two

years earlier, and subsequently have been falling. That may be changing, since the oil price

index turned upwards again in November, and from January 2012 to March 2012 the other

indices also rose, except for beverages.

10

USDA NASS Crop Progress, Bloomberg, April 9, 2011 (see earlier footnote). 11

IGC projects 2012/13 harvests at 900M tonnes, an increase of 4% on 2011/12.

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Figure J IMF commodity indices to Jan 2002 to Mar 2012

Source: IMF Data

Figure K Focus on the last financial year for IMF commodity indices, April 2011 to March 2012

Source: IMF Data

Oil appears to lead the other commodities, just as it did in early 2009 — with metals not far

behind. Oil is the commodity most sensitive to economic swings and roundabouts, and to any

risks in global affairs. Oil prices then affect food prices through costs of fertiliser, transport and

machinery operations; plus, increasingly important, maize prices through the ethanol link. With

oil above US$100 a barrel, ethanol from maize should be profitable — at least while room for

ethanol to be blended with gasoline remains.

FAO food price indices

FAO’s food price index, in decline since early 2011, rose a little from December 2011 to March

2012, pulled up by oils, sugar, and cereals, see Figure L.

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Page 9 of 33

Figure L FAO Food Price Indices to March 2012

Source: FAO Note: 2000 – 2004 = 100

Food crises

Reports continue to warn of a food crisis in the West African Sahel, affecting people in Mali,

Niger, Burkina Faso, Chad, Mauritania, and Senegal.

Figure M Countries requiring external assistance for food: focus on the Sahel

Source: March 2012, FAO GIEWS

Harvests across the region in 2011 were worse than the year before: cereals production is down

by 19% in Burkina Faso, 16% in Chad, 10% in Mali, 34% in Mauritania, 30% in Niger, and 38%

in Senegal — according to FAO GIEWS estimates [Country Briefs] compared to FAO statistics for

the 2010 cereals harvest. Across these six countries, production per capita is down nearly 30 kg

in 2011 compared to the previous five-year average for 2005 to 2010, see Figure N.

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Page 10 of 33

Figure N Cereal production per capita in selected Sahelian countries, 2000 to 2011

Source: From FAOSTAT data for 2000 to 2010, FAO GIEWS Country Briefs for 2011 estimates, converted to per using

UN population estimates.

Reports indicate that prices in the 2011 to 2012 marketing season rose very soon after harvest;

but some of that increase may be owing to demand from aid agencies and governments

concerned to assure relief supplies in anticipation of a food crisis. In Niger, prices have

subsequently fallen, according to FEWSNET.

Four points are evident in the emerging crisis:

The extent to which food prices rise in specific markets, making it difficult for the poor

to afford a sufficient diet, will depend on how much food is traded towards the areas

with largest reductions in local supply. There are now ECOWAS accords to allow free

movement of cereals, but there great temptations arise at times like these for

governments to prevent export of grains;

Insecurity in the region will make it harder for the vulnerable to cope and for relief to be

supplied to them. Northern Mali is currently virtually inaccessible to humanitarian

agencies — although some of those vulnerable from this area have already fled to camps

in Mauritania and Niger. Fears over Boko Haram have led to much of the border

between Niger and Nigeria being closed, save for a small corridor leading to Niamey. In

most years, southern Niger is a net importer of cereals from northern Nigeria, and

especially when harvests are poor, so any constriction of trade across the border could

see prices rising sharply in Niger;

Early warnings of the likely crisis were sounded months ago,12 yet responses have been

delayed; and,

12

Warnings began in the last quarter of 2011

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Page 11 of 33

The crisis presents a familiar dilemma in that the reduced harvest of late 2011 was not

necessarily disastrous so that current observations of distress in the region may be little

more than usually can be seen as the hungry season leading to the next harvest in

September/October begins. That, of course, does not make suffering acceptable —

surveys of pre-schoolers in Niger, for instance, in any year show chronic and

unacceptably high rates of Global Acute Malnutrition; but it does prompt questions over

the response. Emergency food aid to treat symptoms of acute crisis does not tackle the

chronic problems of poverty and malnutrition13 that beset vulnerable households and

especially their young children.14

Equally disturbing are reports from East Africa and the Horn where the first food crops of the

year have been planted. Early signs are of poor weather hindering growth. Were these harvests

to fail, the impact could be catastrophic given that the region went through a severe crisis last

year, assets have been run down, stocks are low, and coping strategies are limited.15

13

See Eilerts, G., April 10, 2012. Niger 2011-12: An exceptional crisis? Presentation at Oxfam/Partnership for Africa

Workshop.FEWSNET. 14

Niger for instance has chronic and unacceptably high rates of Global Acute Malnutrition in preschoolers. 15

See FEWSNET, April 6, 2012. East Africa Food Security Alert: Poor forecast suggests that increased food insecurity is likely in the eastern Horn. http://www.fews.net/docs/Publications/East%20Region_Alert_2012_04_06_final.pdf

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Annual review, April 2011 to end March 2012

Last year in brief

Most cereals harvests were good in 2011, the main exceptions being some of the rice harvests.

Consequently the high prices of maize and wheat seen a year ago fell from April 2011 to March

2012, by 14% for wheat and by 5% for maize.

Rice prices have risen over the year, by 12% for premium grades, pushed up by a combination

of poorer than expected harvests in Thailand and the Philippines, anxiety over the policies

introduced by the new government in Thailand to support farmer prices, and stronger than

expected demand for imports from China.

Emerging trends since the price spike of 2007–08

Trends on the world cereals markets since the 2007/08 price spike are becoming clearer.

Increasingly it seems that lasting change can be found in the maize market. For so long maize

was the jobbing cereal: cheap — the world price got as low as US$75 a tonne in July 2000 — and

hence used more than any other grain for animal feed and for processing to starch and syrup.

But rising oil prices, biofuel mandates and subsidies, and increasing demand for animal feed

have changed that. With a colossal 125M tonnes or more of the US maize harvest going to

ethanol distilleries, while countries like China begin to import significantly more maize to feed

pigs, maize prices have moved to US$150 and US$200 a tonne or more: levels that a decade ago

would have been difficult to imagine.

As the maize price has risen, it seems that demand for wheat as a feed has increased as well,

since when maize prices reach the levels seen in the last year, wheat in some markets competes

on price with maize. Hence the wheat market, that otherwise shows every sign of getting back to

the low prices seen before the price spike, has seen prices supported by this substitution effect.

This prompts the question of supply response: the high prices seen since 2007 and the

indications of substantially higher demand for maize should provoke a supply response in

cereals production. Almost five years since the price spike began, enough time has passed to

overcome any short term rigidities. So what response has been seen?

Supply response: reacting to higher prices

Perspectives from the long and medium terms

To set the scene, Figure P shows the last fifty years of the area planted to cereals and yields per

hectare. The growth of yields has been remarkably consistent: every decade almost half a tonne

per hectare has been added to cereal yields.16 What does change is the area planted to crops.

The early 1980s were the high water mark for cereals, with as much as 726M hectares sown.

Subsequently the area planted fell by 9% to 660M hectares in 2002: in part a response to

16

Since this increase is arithmetic, the average annual growth rate of yields has fallen over the half century under review — from an average of 3% in the 1960s to 1.86% in 2000s.

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considerable fall in real prices for cereals seen over those two decades. Since 2002, the area

planted has once again expanded, above all in 2008 in response to the very high prices seen

early that year. Hence it seems that in the long run much of the supply response comes through

changes in area planted, rather than yield.

Figure P World cereals, are planted and yields per hectare, 1961 to 2010

Source: Constructed from FAOSTAT data

What does the record for each of the three main cereals show?

Figure Q Yields for three main cereals, 1961 to 2010, tonnes/ha

Source: Constructed from FAOSTAT data

1

2

3

4

640

670

700

730

19

61

19

63

19

65

19

67

19

69

19

71

19

73

19

75

19

77

19

79

19

81

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83

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85

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87

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89

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03

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05

20

07

20

09

Yie

ld, t

on

ne

/h

a

Are

a h

arv

est

ed

, M h

a

1.0

2.0

3.0

4.0

5.0

19

61

19

63

19

65

19

67

19

69

19

71

19

73

19

75

19

77

19

79

19

81

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89

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91

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93

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99

20

01

20

03

20

05

20

07

20

09

Av

era

ge

Yie

ld, t

on

ne

/h

a

Maize

Rice

Wheat

Yield

Area

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Figure R Area planted to three main cereals, 1961 to 2010, M hectares

Source: Constructed from FAOSTAT data

Globally, maize yields have risen consistently since the 1960s, improving from about 2 tonnes

per hectare in the early 1960s to close to 5.5 tonnes per hectare in 2010 — and over 6.5 tonnes

in the major maize exporters [US, Argentina, China, Brazil, Ukraine], see Figure Q. Area planted

appeared to level off or even decline from the mid-1990s, but has accelerated sharply after

2002, increasing by about 25M hectares from 2002 to 2010, see Figure R.

About 60% of the increase in area from 2000 to 2010 came from the top exporters, who also

saw yield increases of about 1 tonne per hectare on average from 2000 to 2010, slightly better

than the global average yield gain of about 900kg per hectare, see Figure Sa.

Figure S Key staple foods area and yield changes, 2000 to 2010, globally

a Maize

b Rice

100

120

140

160

180

200

220

240 1

96

1

19

63

19

65

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69

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20

09

Mil

lio

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ect

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s

Maize

Rice

Wheat

4.2

4.4

4.6

4.8

5

5.2

5.4

135

140

145

150

155

160

165

20

00

20

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Area, maize, M ha

Yield, maize, T/ha

3.8

3.9

4

4.1

4.2

4.3

4.4

146

148

150

152

154

156

158

160

20

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Yield, rice, T/ha

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c Wheat

Source: Contructed from FAOSTAT data.

Yield growth in rice was fairly steady from the early 1960s to the mid 1970s, after which

growth accelerated until 1985, see Figure Q. From 1985 to 2010 yield growth slowed markedly,

see Figure T. Area planted to rice grew relatively rapidly until the late 1970s, see Figures R and

T, after which growth slowed. In recent years most growth in area has come from minor rice

producing countries.

Figure T Rice: growth rates of yields and area planted, 1961 to 2010

Source: From FAOSTAT data

Wheat yields have grown since the early 1960s, but slowed notably since the early 1990s, see

Figure Q. Area planted to wheat grew from the early 1960s to the early 1980s, after which it

declined until about 2003; since when it has been rising again but has yet to regain the peak

registered in the early 1980s, see Figure Q.

Response to the price spike of 2007/08

The price spike has led to an acceleration of cereals production: between 2006 immediately

before the spike and 2009 by which time farmers had a chance to react to the higher prices,

world cereals harvests rose by more than 11%, well ahead of consumption, see Figure U. Most

of the increase, fully three-quarters, has come from higher yields rather than from an expanded

area. By crop, the largest increase was almost 16% for maize, followed closely by wheat at 14%.

2.6

2.7

2.8

2.9

3

3.1

205

210

215

220

225

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Area, wheat, M ha

Yield, wheat, T/ha

1

1.5

2

2.5

3

3.5

4

1961 - 79 1979 - 1985 1985 - 2010

An

nu

al

%

Yield growth, rice

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1961 - 79 1979 - 1985 1985 - 2010

An

nu

al

%

Area growth, rice

World

Top producers / users

Top exporters

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Rice has seen a surprisingly weak response, at less than 7% increase: surprising since it was the

rice price that spiked most sharply in 2008, and it is the rice price that remains so much higher

than in 2006 — prices since late 2008 for rice have been US$200 a tonne or more higher than

before the spike. Is this because in the main rice producers, there is little suitable land to add to

rice? Perhaps: but even allowing for that possibility, the yield response for rice has been roughly

half that seen for other cereals.

This is puzzling: a possible reason for this is that high world rice prices may not have translated

back into higher prices for farmers, as may be the case in several of the main Asian producers,

where governments intervene considerably in rice markets.

The lack of supply response to higher rice prices explains why the rice price has remained so

high.

Figure U Increased cereals production, share by area and yield, 2006 to 2009

Source: Using data from FAO

Higher maize prices: so more use of other feeds for livestock?

Most the world’s maize is fed to livestock to satisfy demand for meat. As maize prices have risen

since the price spike, has this led to maize being substituted by other feeds? Yes, to judge by the

statistics on maize and wheat used for animal feed presented in Figures V and W.

-

2

4

6

8

10

12

14

16

All Cereals Maize Rice Wheat

Incr

ea

se i

n P

rod

uct

ion

, 20

06

to

2

00

9, %

Yield Share

Area Share

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Figure V Change in maize fed to livestock since 1990/91, annual average, M tonnes

Source: from USDA data

Figure W Change in maize fed to livestock since 1990/91, annual average, M tonnes

Source: from USDA data

In the 16 years from 1990/91 to 2006/07 before the price spike, maize use for feed increased

by an average of almost 10M tonnes a year: in the four subsequent years, that slowed to less

than 3M tonnes. For wheat used to feed livestock, the change has been the reverse: in the 16

years before the spike, wheat used for feed actually fell; after the spike, it has risen by an

average of more than 9M tonnes a year. It thus seems that wheat is being substituted for maize:

to be expected given the erosion of the premium in price that wheat has had over maize.

The story is more complicated when disaggregated by some of the main consuming regions.17

North America shows an extraordinary change in maize used for feed: growing before the spike,

17 Annex 4 shows how cereals used for feed have evolved by region since 1990/91.

-10

-5

0

5

10

Euro Union

Former Soviet

Union & Other

Europe

East & SE Asia

North America

Rest of world

World

An

nu

al

Ch

an

ge

, M t

on

ne

s 1990/91 to 2006/07

2007/08 to 2011/12

-4

-2

0

2

4

6

8

10

Euro Union

Former Soviet

Union & Other

Europe

East & SE Asia

North America

Rest of world

World

An

nu

al

Ch

an

ge

, M t

on

ne

s

1990/91 to 2006/07

2007/08 to 2011/12

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the amount used has fallen heavily since then — by an average of almost 10M tonnes a year.

This has arisen partly because of the growing use of maize for ethanol.

The diversion of maize to ethanol, however, does not affect livestock feed as strongly as might

be expected, thanks to the substitution of dried distiller’s grains with solubles (DDGS), a by-

product from ethanol distillation, for maize and soybean meal. Roughly one-third of every tonne

of corn distilled to ethanol returns as livestock feed in the US as DDGS, replacing corn and soya

meal, mostly for beef or dairy cattle.18

Against the recent fall in maize being used for feed in North America can be set the strongly

growing use in East and Southeast Asia, and in the rest of world, with South America prominent.

For feed wheat, every region other than the European shows increased growth in use since the

spike, with absolute decline in use changing to increases in the Former Soviet Union and Other

Europe19 and in North America.

What of other feeds that might substitute for maize? There are no signs of other grains

substituting for maize: use of barley, oats and sorghum for livestock has been in decline for the

last two decades, with no sign that the price spike has changed that.

Other than cereals, cassava would be prime candidate to replace the energy component of

animal feedgrains. 20 Although there has been an increase in both area planted and yields in the

2000s, see Figure W, almost all of this occurred before the spike began in 2007. So far there are

few signs that high maize prices may be stimulating cassava as a replacement, although FAO

estimates cassava production in 2011 to be up by 6%. (FAO Outlook Nov 2011, 5)

18

Hoffman, Linwood A., & Allen Baker. Oct 2011. Estimating the Substitution of Distillers’ Grains for Corn and Soybean

Meal in the U.S. Feed Complex. USDA.

The rising importance of DDGS as a feed means that when computing the greenhouse gas emissions from maize grown for distilling, an offset may be made for the by-product, subtracting avoided production of soybeans. If it is claimed that DDGS reduces the area that might have been converted to soybeans in South America, the offset can very large. Ethanol plants in the UK claim that their emissions footprint is thereby negative. 19

There was an abrupt fall in the use of wheat and to a lesser extent of maize in the old Eastern Bloc in the early 1990s as economies ceased to be centrally planned and moved to markets. Since the late 1990s, use of grains for livestock has started to grow again, but remains well below its former levels. 20

Cassava used to make starch also produces by-products that can be used for feed. For instance, in Thailand, animal nutritionists recently examined the viability of dried cassava pulp (a byproduct of starch processing) as a maize substitute in poultry diets, prompted by the higher maize prices and lower availability. They found that dried cassava pulp can be used as an energy source for poultry, and blended to be up to 8% of broiler diets. [S. Khempaka; W Molee & M. Guillaume, 2009. Dried cassava pulp as an alternative feedstuff for broilers: Effect on growth performance, carcass traits, digestive organs, and nutrient digestibility. The Journal of Applied Poultry Research. http://japr.fass.org/content/18/3/487.full]

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Figure W Cassava, yields and area 2000 to 2010

Source: Constructed with FAOSTAT data

In sum, then, there has been a move away from maize and in favour of wheat as a consequence

of the higher prices of maize that have prevailed since the 2007/08 price spike. The surprise

here is the apparent lack response by cassava, a crop that grows well across large parts of the

tropics. That delay, however, may owe something to the longer production cycle of cassava

compared to cereals: cassava can take 18 to 24 months to develop its full yield. It will be

interesting to see how much land is planted to cassava in the coming years.

10

10.5

11

11.5

12

12.5

13

16.5

17

17.5

18

18.5

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/h

a

Are

a, M

ha

Area, cassava, M ha Yield, cassava, T/ha

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Annex 1 Maize, rice, wheat — latest annual projections from USDA

Figure A1.1 Global production, consumption, stock-to-use ratios, ending stocks

Source: USDA FAS and USDA WASDE, Jan to April 2012. Note: For maize, the 2010/11 estimate is revised from the

Feb 2012 WASDE figure used in the last update, so that the stock-to-use ratio changes from 15.3 to 14.7% for

2010/11

110 132 147 144 125 128 125 125 123

15.2

17.0

18.8

17.7

14.7 14.8 14.4 14.3 14.1

13

14

15

16

17

18

19

700

720

740

760

780

800

820

840

860

880

2006/07 2007/08 2008/09 2009/10 2010/11 est*

Jan 2012 proj

Feb 2012 proj

Mar 2012 proj

Apr 2012 proj

Latest 2011/12 proj

%

M t

on

ne

s

Maize

Production Consumption Ending stocks stock-to-use ratio (R axis)

75 80 92 94 98 100 100 100 103

17.9

18.8

21.1

21.7 22.1

21.8 21.8 21.7

22.5

17

18

19

20

21

22

23

410

420

430

440

450

460

470

2006/07 2007/08 2008/09 2009/10 2010/11 est*

Jan 2012 proj

Feb 2012 proj

Mar 2012 proj

Apr 2012 proj

Latest 2011/12 proj

%

M t

on

ne

s

Rice

Production Consumption Ending stocks stock-to-use ratio (R axis)

133 127 167 201 199 210 213 210 206

21.4 20.7

26.3

31.0 30.3 30.8

31.3 30.6

30.0

20

22

24

26

28

30

32

34

580

600

620

640

660

680

700

2006/07 2007/08 2008/09 2009/10 2010/11 est*

Jan 2012 proj

Feb 2012 proj

Mar 2012 proj

Apr 2012 proj

Latest 2011/12 proj

%

M t

on

ne

s

Wheat

Production Consumption Ending stocks stock-to-use ratio (R axis)

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Annex 2 Stocks — where are they now, compared to historical distribution & levels

Figure A2.1 Relative distribution of key cereal stocks held by region

Source: With data in USDA FAS. Note: Labels are in millions of tonnes. Rice is on a milled basis

4

11

44

88 88

40

55 5

17 36

98

82

40 47

4

11

30

58

78

40 61

3.1

6.0 6.1

15.0

21.5

12.8 25.1

4.0

6.5

7.9

7.5

23.4

9.0

22.2

1.2

2.6

6.7

6.7

13.4

14.9

18.4

2.4

3.7

7.6

5.8 4.9

8.2

6.4

11.8

10.0

14.4

27.5

19.5

18.4 15.7

8.7

6.7

28.9

14.5

14.5 27.1

3.5

3.6

2.3 2.1

1.7

3.3

7.7

10.8 12.7

12.5 13.9

43.2

21.5

65.8

43.0 43.0

46.4 33.7

0.3 1.6

51.7

37.2

43.1

28.2 27.6

19.5 31.4

2.3 1.7

2.3 4.2 6.6

12.1

14.3

0.6

3.9

4.2 5.8

1.1 2.0 5.3 3.1 3.2

6.3 10.4

0.1 0.1 0.4 1.0 2.8 1.7 1.5 0.3 1.3 2.4 3.6

6.9

10.6 14.0

6.0 8.1

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

19

60

-62

19

70

-72

19

80

-82

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90

-92

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00

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-11

MAIZE 3-year averages RICE 3-year averages WHEAT 3-year averages

Oceania

Africa

South & Central America & Caribbean

North America

Middle East

Former Soviet Union

Europe

Southeast Asia

South Asia

East Asia Maize Rice, milled Wheat

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Figure A2.2 Distribution of key cereal stocks through time, levels

Source: With data from USDA FAS

Table A2.1 Stock to use ratios for key cereals by region (maize, rice, wheat aggregated)

1960-62 1970-72 1980-82 1990-92 2000-02 2005-07 2009-11 Relative to other periods, stocks (and

stocks relative to use), which dropped

over the 2005/07 period have been

rebuilt for the 2009/11 period; though

this has happened to a much greater

extent with wheat and rice than with

maize.

East Asia 11.9 21.5 37.6 64.8 58.2 27.7 33.6 South Asia 10.7 12.6 10.7 12.1 20.4 9.2 17.8 >20 – 30 Southeast Asia 4.8 7.2 11.3 9.0 13.6 15.2 17.3 >30 – 50 Europe 13.7 9.8 13.5 20.8 13.1 13.7 11.4 >50 Former Soviet Union 2.0 8.4 5.3 26.0 20.8 18.3 31.1 Middle East 9.9 15.9 23.7 24.5 25.7 24.7 24.3 North America 80.7 38.6 59.7 30.8 25.0 20.3 17.8 South & Central America & Caribbean 12.1 8.3 9.4 11.2 12.7 16.2 17.3 Africa 5.8 8.9 13.2 9.0 11.7 14.3 16.6 Oceania 42.8 57.8 88.3 75.8 84.8 72.8 99.9 WORLD 24.0 17.8 26.2 32.0 29.4 19.0 22.2 Source: With data from USDA FAS

0

50

100

150

200 1

96

0-6

2

19

70

-72

19

80

-82

19

90

-92

20

00

-02

20

05

-07

20

09

-11

19

60

-62

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90

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00

-02

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-82

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-92

20

00

-02

20

05

-07

20

09

-11

MAIZE 3-year averages RICE 3-year averages WHEAT 3-year averages

Mil

lio

ns

of

ton

ne

s

Oceania

Africa

South & Central America & Caribbean

North America

Middle East

Former Soviet Union

Europe

Southeast Asia

South Asia

East Asia

Maize Rice, milled Wheat

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Page 23 of 33

Annex 3 Maize, rice, wheat, and cassava – production and area

harvested

The following figures show how much production, yield, and harvested area for maize, rice,

wheat, and cassava has evolved from 1961 to 2010. Data is shown for global totals as well as for

3 aggregates — by the top 10 producers, exporters, and users for each crop. Table A3.1 shows

the groups used to calculate the top 10.

Table A3.1 Country groups used to produce figures A3.1 to A3.16

Top 10 by production (Avg 2006-2010) Cassava Maize Rice Wheat

Nigeria USA China China Brazil China India India Thailand Brazil Indonesia USA Indonesia Mexico Bangladesh Russia DR Congo Argentina Viet Nam France Ghana India Myanmar Canada Angola Indonesia Thailand Germany India France Philippines Pakistan Viet Nam Canada Brazil Turkey Mozambique South Africa Japan Ukraine

Top 10 by exporters (Avg 2005 - 2009) Cassava Maize Rice Wheat

Thailand USA Thailand USA Viet Nam Argentina Viet Nam Canada Indonesia France India France China, Hong Kong SAR Brazil USA Australia Netherlands China Pakistan Russia Costa Rica Hungary China Argentina Paraguay Ukraine Egypt Germany China India Uruguay Ukraine Belgium Paraguay Italy Kazakhstan Brazil South Africa Argentina UK

Top 10 by use (2005 - 2007) Cassava Maize Rice Wheat

DR Congo Mexico China China Nigeria China India India Indonesia Indonesia Indonesia USA Brazil India Bangladesh Russia India South Africa Viet Nam Pakistan U Rep Tanzania Brazil Philippines Turkey Mozambique Egypt Myanmar Iran Ghana United States of America Japan Egypt Uganda Nigeria Thailand Brazil Angola Ethiopia Brazil Italy

Source: Constructed with data from FAOSTAT

Note: For cassava export, where Thailand accounts for over 80% of exports, figures are aggregated for 7 countries, as

3 of the top 10 exporters recorded in FAOSTAT are non-producers (Hong Kong, the Netherlands, and Belgium).

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Page 24 of 33

Maize production, area, and yield figures

Figure A3.1 Maize production, 1961 – 2010

FAOSTAT

Figure A3.2 Area under maize production, 1961 – 2010

FAOSTAT

50

70

90

110

130

150

170

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

M h

ect

are

s

World

Top producers

Top exporters

Top users

50

70

90

110

130

150

170

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

M h

ect

are

s

World

Top producers

Top exporters

Top users

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Page 25 of 33

Figure A3.3 Maize yield, 1961 - 2010

FAOSTAT

Figure A3.4 Area and yield arranged by country cluster: MAIZE

FAOSTAT

1

2

3

4

5

6

7

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

To

nn

es

pe

r h

ect

are

World

Top producers

Top exporters

Top users

1.5

2

2.5

3

3.5

4

4.5

5

5.5

100

110

120

130

140

150

160

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61

19

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19

67

19

70

19

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19

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19

91

19

94

19

97

20

00

20

03

20

06

20

09

Area World - L axis, M ha Yield World - R axis, T/ha

1.5

2.5

3.5

4.5

5.5

6.5

60

70

80

90

100

110 1

96

1

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

Area Top producers - L axis, M ha

Yield Top producers - R axis, T/ha

2

3

4

5

6

7

50

60

70

80

90

100

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

Area Top exporters - L axis, M ha

Yield Top exporters - R axis, T/ha

2

3

4

5

6

60

70

80

90

100

110

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

Area Top users - L axis, M ha

Yield Top users - R axis, T/ha

Page 26: Food Prices March 2012 update Annual Review April 2011 to ... · Wheat exports from Russia are predicted to exceed 20M tonnes in 2011/12; a sharp contrast from the less than 4M tonnes

Page 26 of 33

Rice production, area, & yield figures

Figure A3.5 Rice production, 1961 – 2010

[Note: *top users & top producers the same for rice]

FAOSTAT

Figure A3.6 Area under rice production, 1961 – 2010

FAOSTAT

120

220

320

420

520

620

720 1

96

1

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

M t

on

ne

s

World

Top producers

Top exporters

Top users

70

80

90

100

110

120

130

140

150

160

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

M h

ect

are

s

World

Top producers

Top exporters

Top users

Page 27: Food Prices March 2012 update Annual Review April 2011 to ... · Wheat exports from Russia are predicted to exceed 20M tonnes in 2011/12; a sharp contrast from the less than 4M tonnes

Page 27 of 33

Figure A3.7 Rice yield, 1961 – 2010

FAOSTAT

Figure A3.8 Area and yield arranged by country cluster: RICE

FAOSTAT

1.6

2.1

2.6

3.1

3.6

4.1

4.6

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

To

nn

es

pe

r h

ect

are

World

Top producers

Top exporters

Top users

1.5

2

2.5

3

3.5

4

4.5

100

110

120

130

140

150

160

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

Area World - L axis, M ha

Yield World - R axis, T/ha

1.5

2

2.5

3

3.5

4

4.5

100

105

110

115

120

125

130

135 1

96

1

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

Area Top producers - L axis, M ha

Yield Top producers - R axis, T/ha

1.5

2

2.5

3

3.5

4

4.5

70

75

80

85

90

95

100

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

Area Top exporters - L axis, M ha Yield Top exporters - R axis, T/ha

1.5

2

2.5

3

3.5

4

4.5

100

105

110

115

120

125

130

135

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

Area Top users - L axis, M ha Yield Top users - R axis, T/ha

Page 28: Food Prices March 2012 update Annual Review April 2011 to ... · Wheat exports from Russia are predicted to exceed 20M tonnes in 2011/12; a sharp contrast from the less than 4M tonnes

Page 28 of 33

Wheat production, area, & yield figures

Figure A3.9 Wheat production, 1961 – 2010

[Note: Wheat statistics appear to have breaks around 1992 owing to inclusion of Russia]

FAOSTAT

Figure A3.10 Area under wheat production, 1961 – 2010

FAOSTAT

20

120

220

320

420

520

620

720 1

96

1

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

M t

on

ne

s

World

Top producers

Top exporters

Top users

35

85

135

185

235

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

M h

ect

are

s

World

Top producers

Top exporters

Top users

Page 29: Food Prices March 2012 update Annual Review April 2011 to ... · Wheat exports from Russia are predicted to exceed 20M tonnes in 2011/12; a sharp contrast from the less than 4M tonnes

Page 29 of 33

Figure A3.11 Wheat yield, 1961 – 2010

FAOSTAT

Figure A3.12 Area and yield arranged by country cluster: WHEAT

FAOSTAT

0.7

1.2

1.7

2.2

2.7

3.2

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

To

nn

es

pe

r h

ect

are

World

Top producers

Top exporters

Top users

1

1.5

2

2.5

3

200

205

210

215

220

225

230

235

240

19

61

1

96

4

19

67

1

97

0

19

73

1

97

6

19

79

1

98

2

19

85

1

98

8

19

91

1

99

4

19

97

2

00

0

20

03

2

00

6

20

09

Area World - L axis, M ha

Yield World - R axis, T/ha

1

1.5

2

2.5

3

3.5

70

80

90

100

110

120

130

140

150 1

96

1

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

Area Top producers - L axis, M ha

Yield Top producers - R axis, T/ha

1

1.2

1.4

1.6

1.8

2

2.2

2.4

2.6

2.8

3

30

40

50

60

70

80

90

100

110

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

Area Top exporters - L axis, M ha

Yield Top exporters - R axis, T/ha

1

1.5

2

2.5

3

70

80

90

100

110

120

130

140

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

Area Top users - L axis, M ha

Yield Top users - R axis, T/ha

Page 30: Food Prices March 2012 update Annual Review April 2011 to ... · Wheat exports from Russia are predicted to exceed 20M tonnes in 2011/12; a sharp contrast from the less than 4M tonnes

Page 30 of 33

Cassava production, area, and yield figures

Figure A3.13 Cassava production, 1961 – 2010

FAOSTAT

Figure A3.14 Area under cassava production, 1961 - 2010

FAOSTAT

20

70

120

170

220 1

96

1

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

M t

on

ne

s

World

Top producers

Top exporters

Top users

3

5

7

9

11

13

15

17

19

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

M h

ect

are

s

World

Top producers

Top exporters

Top users

Page 31: Food Prices March 2012 update Annual Review April 2011 to ... · Wheat exports from Russia are predicted to exceed 20M tonnes in 2011/12; a sharp contrast from the less than 4M tonnes

Page 31 of 33

Figure A3.15 Cassava yield, 1961 - 2010

FAOSTAT

Figure A3.16 Area and yield arranged by country cluster: CASSAVA

FAOSTAT

7

9

11

13

15

17 1

96

1

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

To

nn

es

pe

r h

ect

are

World

Top producers

Top exporters

Top users

7

8

9

10

11

12

13

9

10

11

12

13

14

15

16

17

18

19

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

Area World - L axis, M ha

Yield World - R axis, T/ha

7

8

9

10

11

12

13

14

15

6

7

8

9

10

11

12

13

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

Area Top producers - L axis, M ha

Yield Top producers - R axis, T/ha

10

11

12

13

14

15

16

17

18

3

3.5

4

4.5

5

5.5

6

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

Area Top exporters - L axis, M ha Yield Top exporters - R axis, T/ha

6

7

8

9

10

11

12

13

7

8

9

10

11

12

13

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

Area Top users - L axis, M ha

Yield Top users - R axis, T/ha

Page 32: Food Prices March 2012 update Annual Review April 2011 to ... · Wheat exports from Russia are predicted to exceed 20M tonnes in 2011/12; a sharp contrast from the less than 4M tonnes

Page 32 of 33

Annex 4 Cereals used for animal feed, 1990/91 – 2011/12

Figure A4.1 Maize used for feed, 1990/91 to 2011/12

Source: From USDA FAS data

Globally, maize used for feed saw a small dip in 2008/09. North American maize use for feed

actually decreased from 2007/08 to 2011/12. Other regions saw increases over this period,

with the exception of Europe, which saw a very small decline.

Figure A4.2 Wheat used for feed, 1990/91 to 2011/12

Source: From USDA FAS data

Globally, wheat for feed use appears to have been more than usually volatile from about

2003/04 to the current time. It has also increased over the last few years. These increases have

been seen in most regions, except for Europe. East Asia has seen relatively the largest increases

in using wheat for feed.

0

100

200

300

400

500 1

99

0/1

99

1

19

91

/19

92

19

92

/19

93

19

93

/19

94

19

94

/19

95

19

95

/19

96

19

96

/19

97

19

97

/19

98

19

98

/19

99

19

99

/20

00

20

00

/20

01

20

01

/20

02

20

02

/20

03

20

03

/20

04

20

04

/20

05

20

05

/20

06

20

06

/20

07

20

07

/20

08

20

08

/20

09

20

09

/20

10

20

10

/20

11

20

11

/20

12

M t

on

ne

s

Maize, feed use East Asia

South Asia

Southeast Asia

Europe

Former Soviet Union

Middle East

North America

South & Central America & Caribbean Africa

Oceania

WORLD

0

20

40

60

80

100

120

140

19

90

/19

91

19

91

/19

92

19

92

/19

93

19

93

/19

94

19

94

/19

95

19

95

/19

96

19

96

/19

97

19

97

/19

98

19

98

/19

99

19

99

/20

00

20

00

/20

01

20

01

/20

02

20

02

/20

03

20

03

/20

04

20

04

/20

05

20

05

/20

06

20

06

/20

07

20

07

/20

08

20

08

/20

09

20

09

/20

10

20

10

/20

11

20

11

/20

12

M t

on

ne

s

Wheat, feed use East Asia

South Asia

Southeast Asia

Europe

Former Soviet Union

Middle East

North America

South & Central America & Caribbean Africa

Oceania

WORLD

Page 33: Food Prices March 2012 update Annual Review April 2011 to ... · Wheat exports from Russia are predicted to exceed 20M tonnes in 2011/12; a sharp contrast from the less than 4M tonnes

Page 33 of 33

Figure A4.3 Other cereals used for feed, 1990/91 to 2011/12

Source: From USDA FAS data

Feed use of other cereals — such as sorghum, barley, oats, etc. — has been declining over the

long-term. After 2007/08 it picked up in some regions, including South & Central America & the

Caribbean; Africa (where it was already rising since about 2000); and South Asia.

0

50

100

150

200

250

19

90

/19

91

19

91

/19

92

19

92

/19

93

19

93

/19

94

19

94

/19

95

19

95

/19

96

19

96

/19

97

19

97

/19

98

19

98

/19

99

19

99

/20

00

20

00

/20

01

20

01

/20

02

20

02

/20

03

20

03

/20

04

20

04

/20

05

20

05

/20

06

20

06

/20

07

20

07

/20

08

20

08

/20

09

20

09

/20

10

20

10

/20

11

20

11

/20

12

M t

on

ne

s Other cereals, feed use

East Asia

South Asia

Southeast Asia

Europe

Former Soviet Union

Middle East

North America

South & Central America & Caribbean Africa

Oceania

WORLD