WORLD FOOD MARKETS INTO THE 21ST-CENTURY - COMMODITY RISK MANAGEMENT POLICIES

Recent concerns about future global food production seem poorly based. The rapid phase of growth in food consumption is over for most of the world's population because of increased incomes and, besides, populat ion growth rates continue to slow. Thus, the rate of growth of food pr oduction needed in the future is much lower than it has been for the p ast 40 years. Production and price instability will continue, perhaps with lessened intensity because of reduced government intervention. Wi th private agricultural interests now facing greater exposure to price and production risks, especially in developing countries, there needs to be greater emphasis on financial market instruments for managing t hese risks.