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Abstract

World sugar prices are at present falling and will affect domestic producers' profits detrimentally. Domestic consumers may not benefit from lower world prices because they have to buy A-pool sugar. Projections of sugar consumption over the long term suggest that aggregate consumption will increase roughly with population growth. Changes in domestic and international sugar policies could have a major impact on production and consumption trends. Timber prices are now declining after five years of shortages and rising prices. Domestic demand for timber is expected to increase by 2,7 per cent per year over the next 20 years. Average annual planting rates ranging from 20 000 ha to 35 000 ha have been recommended by forestry officials. Farmers (and companies) decide on a particular enterprise mix according to the expected relative profitability of enterprises and perceptions of risk.

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