United Nations Radio

A new report released today says that because food is a basic necessity, the agriculture sector is showing more resilience to the global economic crisis than other industries.

baker amidst bags of bread

But the report also points out that the risks could increase if the economic downturn deepens.

The Agricultural Outlook 2009-2018 has been compiled by the Organization for Economic Cooperation and Development and the Food and Agriculture Organization.

The study says falls in agricultural prices and in the production and consumption of farm goods are likely to be moderate as long the economic recovery begins within two to three years.

It adds that as the downturn lowers food prices, pressure is eased on recession-hit consumers who have less money to spend.

The report notes that food prices have come down from the record peaks of early 2008 but they remain high in many poor countries.

The report warns that in coming years there may be extreme price volatility similar to the hike in 2008, particularly as commodity prices have become increasingly linked to oil and energy costs.

Added to this, environmental experts warn of more erratic weather conditions.

Dianne Penn, United Nations Radio.

(duration: 1'17")