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Over the ten-year Outlook period, agricultural markets are projected to remain weak, with growth in China weakening and biofuel policies having less impact on markets than in the past. Future growth in crop production will be attained mostly by increasing yields, and growth in meat and dairy production from both higher animal stocks and improved yields. Agricultural trade is expected to grow more slowly, but remain less sensitive to weak economic conditions than other sectors.
These demand, supply and trade pressures are all evident in Southeast Asia, where this report identifies scope to improve agricultural productivity sustainably. Real prices are expected to remain flat or decline for most commodities.