This is the VOA Special English Agriculture Report.
The Food and Agriculture Organization says it expects anotherdecrease in world grain supplies. The F.A.O. says it expects thesupplies to be eighteen percent lower at the end of the season thantheir opening levels last year.
However, world grain production this year is expected to increaseby two percent. That would be three percent above the average of thelast five years.
But decreased production of some crops will affect prices. TheF.A.O. says it expects trade in grains this year to remain slowmainly because of rising prices.
The F.A.O. is part of the United Nations. The agency released aWorld Food Outlook this month. The report has information on wheat,rice and coarse grains. These include barley, corn and millet.
Wheat supplies have fallen in recent years. China, and recentlyIndia, have reduced their crops. This is partly because the world isusing less wheat. Wheat prices began to increase in July oftwo-thousand-three. The recent cuts mean prices will continue torise.
Much of the coarse grain crops in the world have not yet beenplanted. But the F.A.O. says it expects production to decrease byone percent from last year. Corn prices have increased over the lastfew months.
The world rice crop is expected to increase, but not enough tosatisfy demand. Already, prices for most kinds of rice haveincreased since March.
Uses of grain crops change with time. Today, farmers useone-third of all grains to feed animals. People eat less grain astheir economies develop and their earnings increase. Instead, theyeat more vegetable oils and animal products. This is the case inChina.
At the same time, industrial uses can increase demand for cerealgrains. This is the case with corn. This year, almost half of thecorn not used for food in the United States will go to make alcoholfor fuel.
Grain supplies are a good measure of how the world is producingand using food. Grains are a central part of the human diet. Theyprovide protein, fat and starch.
Coarse grains are a major food for about one-thousand-millionpeople in Africa and Central and South America. Wheat is the mainfood for about one-third of all people. But rice is the most popularcereal grain in the world. It is eaten by about seventy percent ofthe population.
This VOA Special English Agriculture Report was written by MarioRitter.