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Costly fertilizer and pesticides cause less grain plant
Jul. 14, 2009
European farmers are warning that low cereal prices will likely force farmers to plant less grain for next year - which could push up food prices in future.
Farmers' organization Copa-Cogeca on Monday forecast cereal output to fall 9 percent next year after growing 3 percent in 2009 to 309.4 million metric tons.
They said market prices do not currently cover the cost of farming cereals. Yields - the amount of food the land can produce - are also falling as the climate changes and farmers avoid costly fertilizer and pesticides.
The group's chairman Paul Temple said less planting this fall "could lead to a substantial further decline in production and much more price volatility."
Farmers increased the amount of land devoted to grain crops last year as food prices soared. Prices are now much lower as an economic downturn dampens demand.
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