Production and consumption of farm products are expanding faster in developing countries than in developed economies. But a new joint report by the OECD and FAO says productivity growth in the world's poorest nations is not keeping pace with the food needs of their rising populations.

Because of this, the poorest developing countries will be increasingly dependent on world markets for their food security and so more vulnerable to price fluctuations in world markets, according to the report, OECD-FAO Agricultural Outlook 2006-2015. To improve domestic production capacity in these countries greater investment in education, training and infrastructure development is needed.

The report adds that Brazil, India and China are of increasing importance in shaping the future of world agricultural trade. In developing countries as a whole rising incomes and increasing urbanisation are causing changes to people’s diets. This leads to greater demand for and imports of meat and processed foods particularly, but also for the animal feed needed for their production.