Markets and Trade

09/11/2020

The Major Tropical Fruits Statistical compendium, issued once a year, contains information on global trade in mangoes, pineapples, avocados and papayas. Its sources include information provided by FAO member nations, traders, news bulletins and the opinions of commodity specialists and represents the most authoritative and up-to-date source of information on the world tropical fruit economy.

31/10/2020

The State of Agricultural Commodity Markets 2020 (SOCO 2020) aims to discuss policies and mechanisms that promote sustainable outcomes – economic, social and environmental – in agricultural and food markets, both global and domestic. The analysis is organized along the trends and challenges that lie at the heart of global discussions on trade and development.

31/10/2020

The In Brief version of the FAO flagship publication, The State of Agricultural Commodity Markets 2020, contains the key messages and main points from the publication and is aimed at the media, policy makers and a more general public.

13/10/2020

International grain prices registered strong increases in September on production concerns and diminishing inventories, while international rice prices fell across the board amid slowdown in export demand and sales as well as the approaching main harvests in the Northern Hemisphere. In East Africa, prices of coarse grains generally increased in September following seasonal patterns. In most countries, prices were around their year-earlier levels, except in the Sudan and South Sudan, where they reached new record highs in several markets, underpinned by currency weakness and flood-related trade disruptions. In West Africa, prices of coarse grains in Nigeria continued their marked upward surge of the past few months as a result of the macro-economic environment and disruption to the supply chains due to the restrictive measures implemented to contain the COVID-19 pandemic.

09/10/2020

Farmer participation in agricultural markets is of major importance for rural economic growth and poverty alleviation in developing countries. This paper discusses market failures and constraints in agriculture in low-income countries, focusing on how these failures and constraints affect small farmers, input sellers and output buyers.

09/10/2020

Trade liberalization has long been advocated as a means to foster growth and welfare. In developing countries, the expansion of global value chain (GVC) participation of agriculture and food sectors could support transformation from a subsistence-oriented and farm-centered system to a commercialized, productive and off-farm centered one.

09/10/2020

This Technical Report includes: • A policy note with: 1) a short review of the literature on the state-of-art methodologies for computing indicators for global value chain (GVC) participation, positioning and vertical specialization; and 2) a mapping and short analysis of agriculture and food GVCs by world region.

09/10/2020

This paper reviews competition issues in agro-food value chains, including forms of governance and organization, concentration and market power and private standards implications. The paper discusses different value chains in food and agriculture and analyses how services and technologies are embedded in the final value and assesses the share of the different value chain segments.

09/10/2020

Since the 1990s, technological advancements, growing incomes, increased trade, and urbanization have significantly impacted consumption patterns. Worldwide, there is growing evidence of some convergence of diets being facilitated by rapid changes in global food systems including the increasing market share held by supermarkets at all income levels. The formation of the World Trade Organization (WTO) and the emergence and rapid spread of the Internet have also played important roles in facilitating trade and increasing the variety of food available to consumers. Empirical evidence to examine these impacts has mostly been gathered at the household level and, at the global level, the focus has been on the effect of globalization on obesity and health. Using data from the periods 1994–1996 (WTO formation and emergence of the Internet) and 2015–2017 (rapid spread of the Internet), this paper analyses whether global diets are, in fact, converging. In the comparison of these two periods, the author finds that, as trade intensity increases for cereals, sugars, vegetable oils, and meat – which account for more than two-thirds of calories consumed – so does diversity of products consumed from within each group. The relationship between greater trade intensity and caloric consumption diversity is strongest for cereals, meat, and sugars. The author suggests that further research should undertake a disaggregated trade analysis in order to understand whether the increased food diversity is coming from imports of more diverse foods or other factors.

09/10/2020

This technical paper includes: A literature review of the impact of trade policies and domestic support measures (for example, subsidies) on global value chain (GVC) participation including the effects of tariffs and non-tariff measures, Regional Trade Agreements (RTAs) and Rules of Origin, as well as recent market developments and trade tensions on GVC linkages.

09/10/2020

Over the last decade, increasing international fragmentation of production has affected both trade and production: these activities have become increasingly organized around what is commonly referred to as global value chains (GVCs). Increased fragmentation has brought with it challenges of tracing and measuring international divisions of labor, value-added, and so forth. In fact, conventional measures of trade only measure the gross value of exchanges between partners.

05/10/2020

FAO is analysing and providing updates on the emerging COVID-19 pandemic’s effects on agricultural markets—effects that are still largely unknown. Most current assessments generally foresee a contraction in both supply of and demand for agricultural products, and point to possible disruptions in trade and logistics. On the supply side, widely different views remain on the duration of the shocks, the price dynamics, differential impacts between domestic and international markets, differences across countries and commodities, the likely paths of recovery, and the policy actions to remedy the various shock waves. On the demand side, there is near ubiquitous agreement that agricultural demand and trade would slow-down, with contractions stemming from a deceleration in overall economic activity (GDP growth) and rising rates of unemployment. While food and agricultural systems are exposed to both demand and supply side shocks (symmetric), these shocks are not expected to take place in parallel (asynchronous) since, inter alia, consumers can draw on savings, food stocks and safety nets.

21/09/2020

At the request of the Ministry of Agriculture (MoA) and in collaboration with the appropriate Government agencies, an FAO assessment Mission visited Lebanon between 2 and 13 February 2020 to conduct an examination of the impact of the economic and financial crisis on the domestic agricultural sector. The Mission put forward recommendations for appropriate actions to be taken by the Government and the international community to minimize the negative impacts of the crisis on the sector as well as agricultural livelihoods and to protect the most vulnerable in the immediate term.

19/09/2020

With the global population approaching 8 billion, the role of agricultural value chains (VCs) is increasingly important in ensuring sustainable and equitable food production. However, in developing countries, market failures can prevent small farmers from fully participating in domestic and global value chains, and issues related to climate change create further challenges.

19/09/2020

Digital technologies have a high potential to enable further development of the agricultural sector, significantly reshape food value chains (FVCs), and greatly contribute towards more productive, resilient and transparent food systems. This paper provides a non-technical overview of digital technologies that have a high potential to revolutionize the agriculture and food industry, and contribute towards inclusion of small farmers into FVCs.

17/09/2020

The FAO/GIEWS Country Cereal Balance System (CCBS) is a database of annual supply and utilization balances for main cereals, covering all countries of the world. Since 1980, the FAO/GIEWS Team maintains and updates it continually. This statistical report contains a subset of CCBS data and presents updated cereal supply and demand balances for all sub-Saharan African countries. It complements the information of the FAO/GIEWS Crop Prospects and Food Situation report and is published four time a year with the same schedule.

17/09/2020

FAO assesses that globally 45 countries, including 34 in Africa, are in need of external assistance for food. The effects of the COVID-19 pandemic, particularly through the loss of income and jobs related to containment measures, have severely aggravated global food security conditions, as well as increasing the number of people in need of assistance. Conflicts and weather shocks remained critical factors affecting the current high levels of severe food insecurity.

16/09/2020

The month of August saw a rise in all threeFAO price indices trailing the oilseed complex. The oilseeds index increased for a third consecutive month, rising by 0.6 points (or 0.6 percent) and marking the highest level since January 2020. The price indices for oilmeals and vegetable oils posted more significant gains of, respectively, 3.7 and 5.5 points (or 4.6 and 5.9 percent). While all three indices fared above their year-earlier levels, the vegetable oils index stood out with its 19 percent year-on-year gain.

13/09/2020

With trade recognized as a means of implementation under Agenda 2030, policy-makers will need to ensure that trade, and policies affecting trade and markets, are taken into consideration as part of their efforts to achieve SDG 2. The five targets that set out the level and ambition of SDG 2 (ending hunger; ending all forms of malnutrition; doubling the agricultural productivity and incomes of small-scale food producers; ensuring sustainable food production systems; and maintaining genetic diversity), as well as trade itself, often constitute distinct policy priorities for governments. Trade and related policy measures that may be designed to achieve one target can potentially have unintended negative consequences that undermine the achievement of other targets, both within the country where the measure is applied and in the trading partner countries. It is therefore important that policy-makers identify and recognize areas in which difficult tradeoffs may be needed between competing policy objectives, and identify possible ways in which these can be addressed. Furthermore, while the different targets set out under SDG 2 are mutually interdependent and inter-related, it is important to address the trade policy dimension of each component individually as part of a broader plan of action.