Agriculture - The Future Investment to Ensure Global Food Grain Security

Rising global food prices

The top issues faced by the world are rising food prices, trades in renewable sources and global carbon emission. The global middle class will become three times bigger in the next 20 years and with the new changes in food habits the pressure on food production will also increase. One solution to improve food production is to make use of underproductive lands and restore it for food production.

Effect of climate change on food production

The researchers at International Food Policy Research Institute in Washington believe climate change has been effecting food productions in many nations and this is directly affecting the global economy where the effect of one event can be directly felt on all other nations. With the change in economy and food production, food supplies do not prove to be sufficient to meet the growing demands. Some of the largest global economies are concerned by food security which includes China and EU. The current threat of food inflation is causing serious concerns to both developing and developed nations, which caused restrained consumption of grains and higher prices of grain stocks.

Food riots in Arab world and Egypt

In the past year food prices created record highs and the prices are further escalating. The political issues of the Arab world, Middle East and North Africa is said to have started due to the Russia's poor wheat production. A series of droughts destroyed wheat crops in Russia and food prices rose as wheat exports from Russia was halted. Egypt is one such country where food riots took place due to rising food prices.

China's food security concern

In China the improved quality of life has raised the demand for better food and this has made food an important concern which is frequently discussed in political debates. China is facing severe shortage of food grains because the natural resources of the country have been shrinking due to increasing urbanization and rise in population. Heavy industrialization and deficiency in logistics has further created difficulties and the country specifically allocated certain regions to create grain production bases. The country plans to produce at least 540 million tonnes of grain in the coming 5 years, which is the major point of 12th Five Year Plan - National Economic and Social Developments - ( 2011 - 2015).

Agriculture - the future investment to ensure global food grain security

Cambodia: Rice exports rose by 150% in 2011

Milled rice exports of Cambodia rose by 150% in the year 2011, as recorded on year-on-year comparison and the reports from the Federation of Cambodian Rice Millers (FCRMA) showed it shipped 100,000 tonnes of grains to fulfil the demands of European Union and also to some of the Asian countries.

Investments in farmlands

Price rises in food and commodities encouraged farmers to grow more grains, and investors are finding farmland investments a great option as compared to stock and shares as it provides opportunities to earn through grain production and gives returns in the form of rises in price of farmland. Many established players switched to investments in agro-businesses because food price will increase in the coming years and farmland investments also helps to gain carbon credits.

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