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Global Cereal Production Industry

 

The global cereal crops market (part of the agricultural product industry) exceeded $417 billion in 2010, having recorded yearly growth of close to 8% for the four-year period ending 2010. Market growth is expected to decelerate to less than 5% yearly between 2010 and 2015 to exceed $530 billion, according to MarketLine.

 

In terms of production volume, the industry witnessed 3.5% yearly growth between 2006 and 2010, at which point it reached over 1,870 million tons.

 

The cereal crop industry encompasses three categories, namely: rice, wheat and coarse grains. Coarse grains include sorghum, oats, barley and other grains.

 

 

Key Market Segments

 

The cereal bar market exceeded $7010 million in 2009, having recorded yearly growth of 7% between 2004 and 2010, according to Datamonitor. The market is forecast to record yearly growth in exceed of 5% for the five-year period ending 2014 to reach almost $9.1 billion. The market is expected to grow almost 5% in terms of volume to exceed 661 million kg by 2014. Granola/muesli bars represent nearly 29% of the market.

 

 

Regional Market Share

 

The cereal crop market in the North American Free Trade Agreement (NAFTA) countries exceeded $67 billion in 2010, according to research from MarketLine. Mexico recorded the highest rate of growth, exceeding 15% yearly growth between 2006 and 2010. The US dominates the NAFTA cereal crop market, generating more than $51 billion in 2010. The US is forecast to remain the leading region reaching almost $53.6 billion in 2015.

 

The G8 countries cereal crop market was worth close to $100 billion in 2010, according to MarketLine, having recorded yearly growth in excess of 10% between 2006 and 2010. The G8 cereal crop market is forecast to exceed $125.3 billion in 2015, with yearly growth of almost 5% between 2010 and 2015. The US dominates the G8 market with more than 51% share in 2010, generating more than $51 billion in revenue in 2010. The US is expected to remain the leading nation in the market, exceeding $53.6 billion in 2014.

 

Brazil, Russian Federation, India and China (BRIC) had a combined cereal crops market worth more than $206,000 million in 2010, reports MarketLine. Russia recorded the highest growth, exceeding a yearly rate of 24% between 2006 and 2010. China leads the BRIC countries, generating more than $128.5 billion in 2010, and is expected to reach almost $138 billion in 2015.

 

The EU cereal crops generated more than $87 billion in 2010, after yearly growth in excess of 12% for the four preceding years, reports MarketLine. In terms of volume, the market grew 6% yearly between 2006 and 2010 to exceed 454 million tons. Market growth is forecast to slow to 8% yearly growth between 2010 and 2015, reaching almost $128 billion.

 

 

Market Outlook

 

According to research from the Food and Agriculture Organization of the United Nations (FAO), global cereal production reached a peak in 2011, ensuring that increased demand will be met in 2012 and allow global reserves to be replenished.

 

The price of grain experienced downward pressure in 2011, pointing to production recovery in a weaker economic climate. Agricultural production in West Africa was negatively impacted by factors such as pest infestations, dry spells and late onset of rain, particularly in areas of the Sahel such as Chad, Niger, Burkina Faso, Mauritania and Mali. This may mean higher prices and food insecurity in regional cereal markets. FAO research found that as many as 33 countries require external aid due to natural disaster, rising domestic food prices crop failures and conflict.

 

 

Leading Industry Associations

 

 

 

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