OECD-FAO Agricultural Outlook 2025-2034

Current Context: On July 15, 2025, the OECD and FAO released the OECD-FAO Agricultural Outlook 2025–2034, forecasting that 27% of global cereal production will be diverted to biofuel and industrial uses by 2034, up from 23% in the previous year.

• Only 40% will be consumed directly by humans, while 33% will go to animal feed.

Key Insights

• Biofuel Growth: Demand projected to grow at 0.9% annually, led by India, Brazil, and Indonesia.
• Cereal Production: Expected to rise by 1.1% per year, driven mainly by yield improvements (0.9%).
• Land Use: Harvested area growth will slow to 0.14% annually, reflecting sustainability efforts.
• Environmental Impact: Agricultural GHG emissions may rise 6%, though carbon intensity per unit is expected to decline.
• Nutrition Gap: Lower-middle-income countries will see a 24% rise in animal-source calorie intake, while low-income nations remain at just 143 kcal/day, far below FAO’s healthy diet benchmark of 300 kcal.

Question:

Q.1 According to the OECD-FAO Agricultural Outlook 2025–2034, what percentage of global cereal production is projected to be used for biofuel and industrial purposes by 2034?
a) 23%
b) 27%
c) 33%
d) 40%

Answer: b) The report forecasts that by 2034, 27% of global cereal production will be diverted to biofuel and industrial uses, up from 23% previously.