The economies of industrial countries are expected to grow about 2.5 percent in 1997, and developing countries, about 6.2 percent. Increased production of all grain types in the United States and overseas will increase world grain stocks and exert downward pressure on prices. Even so, grain prices will remain volatile. Economists expect continued steady northwest hay production, level exports and firm demand from dairy, beef and horse sectors to keep hay prices strong through the 1996-97 feeding period. Northwest grass seed growers are looking forward to a good year in 1997.
Prices remain strong and production steady for most grass seed varieties.
Northwest apple prices are expected to fall slightly from last year's levels due to a near record apple crop in Washington. Pear prices are expected to increase significantly due to decreased pear production both nationally and in the region. High world production and inventories of hazelnuts have kept prices low. With an average world crop, and decreasing inventories in 1997, prices should stabilize. Strawberry production decreased due to scaled-back plantings.