A growing population and greater demand from biofuels and livestock are expected to keep world grains and oilseeds prices relatively high over the medium term, delegates at the ABARE Outlook conference in Canberra heard today.

ABARE Chief Economist Dr Terry Sheales told delegates that world wheat and coarse grains prices are forecast to decline in 2010-11 as a result of relatively high wheat stocks and higher coarse grains production.

“However, grains prices which have fallen significantly from their 2007-08 peaks, are expected to stabilise over the next one to two years as supply and demand move into better balance,” Dr Sheales said.

“Australian grain and oilseeds production is projected to increase to 43 million tonnes by 2014-15 reflecting a 4 per cent increase in planted area and assumed yields of around the longer-term trend average.”

Professor Mark Tester, of the Australian Centre for Plant Genomics at the University of Adelaide, who addressed delegates in the same session, outlined the importance of adopting genetically modified crops to satisfy the world’s burgeoning demand for food and as a tool to respond to the impacts of climate change.

“The current annual growth rate of world food supplies will need to increase significantly in order to meet the predicted 70 per cent increase in global food production required by 2050, yet not much more land can be brought into production,” Professor Tester said.

“New varieties can make a significant contribution to Australian farming and benefit world food production,” he added.

Tom Shenstone, Director General, Policy, Head of Research at Agriculture and Agri-Food Canada, provided an overview of Canada’s wheat marketing arrangements and grains industry.

He also discussed Canada’s experience in adopting genetically modified crops which began over a decade ago.

“Eighty to 90 per cent of Canadian canola is now genetically modified and there was not much resistance to its introduction by farmers because they saw it deliver increased returns,” Mr Shenstone said.