July 18, 2011

Grain crops used faster that farmers can produce

Grain crops are being used faster then the farmers can grow them according to Chris Hurt, a Purdue University agricultural economist. He goes on to say that there have been two major demand surges in the last five years, this includes the use of grain in ethanol production. But also the greater demand on grain crops, since the increase in wages in China this has lead to buying more food.

"These greater levels of usage have placed a strain on the agricultural production system, resulting in low inventories that leave little room for any production shortfalls," Hurt says. "Producers certainly have responded to try to meet those demands, but what we've seen is that demand has really outpaced the ability of the world to supply." Read more ...

This blog is written by Martin Little, The Global Miller, published and supported by the GFMT Magazine and the International Milling Directory from Perendale Publishers
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