Markets and Trade

11/04/2016

Prospects for continuing large global supplies kept international prices of wheat and maize under downward pressure in March. Export prices of rice in Asia generally firmed, but they were still down in March compared to the same period last year. In East Africa, coarse grain prices rose further in March, sustaining the already high levels, particularly in South Sudan. In Southern Africa, despite some declines in South Africa, prices remained well above their year-earlier values, reflecting tight supplies and poor 2016 production prospects. In West Africa, in Nigeria, sharp price increases continued mainly due to the depreciation of the national currency. In South America, currency weakness in several countries maintained upward pressure on cereal prices, which remained at relatively high levels, particularly in Argentina and Brazil. In Colombia, the depreciation of the national currency coupled with this year’s unfavourable production outlook pushed prices of rice to record highs in March.

05/04/2016

The Mission estimated the 2015 net cereal production in the traditional sector at about 921 000 tonnes, about 9 percent below the 2014 very good output, but still about 16 percent above the last five-year average production. Despite some dry spells between May and August, seasonal rains in 2015 have been generally abundant and prolonged until December. Major reductions in output have been reported in Western Bahr el Ghazal and Eastern Equatoria states due to unfavourable rainfall as well as in W estern Equatoria State due to the disruption of cropping activities following worsening security conditions. The overall cereal deficit in January-December 2016 marketing year is estimated at about 380 000 tonnes, over 130 000 tonnes higher than the deficit estimated for 2015. About 12 percent of the population was estimated to be severely food insecure at end of 2015, a record level during the harvest period. Food security worsened not only in conflict affected areas of Greater Upper Nile Regi on, but also in other states as a consequence of the economic downturn and skyrocketing prices which limited access to food for most households. In 2016, WFP plans to assist 3 million people providing about 315 000 tonnes of food. Although a large component addresses the needs of people directly affected by conflict in the Greater Upper Nile Region, WFP assistance will also focus on school feeding, nutrition interventions and food for assets programs. The Mission stressed that the achievement o f a stable and lasting peace is paramount in order to progress in terms of agricultural development and improving food security. In order to strengthen local production and reduce the food gap in 2017, FAO’s emergency response will assist over 3 million people with agricultural inputs (often through a system of seed fairs and vouchers) to support planting activities, as well as vegetable and fishing kits, and livestock vaccination/treatment. Moreover, FAO is implementing several resilience build ing programs in the Greater Equatoria and Bahr El Ghazal regions.

16/03/2016

An FAO/WFP Crop and Food Security Assessment Mission (CFSAM) visited Myanmar from 24 November to 10 December 2015 at the invitation of the Myanmar’s Ministry of Agriculture and Irrigation (MoAI) to forecast the 2015 cereal production (2015 main monsoon and ongoing 2015 secondary summer season) and to evaluate the prospective food security and nutrition situation. The invitation was prompted by the extensive severe flooding caused by heavy rains and the passage of Cyclone Komen at the end of July 2015, which resulted in considerable damage to agricultural land, livestock, fishery/aquaculture and infrastructure. The Mission aimed specifically to assess the impact of the floods on the 2015 main-crop harvest, to ascertain whether there would be a food shortage in the 2015/16 marketing year (October/September) and, if so, to quantify it, and to identify the country’s nutritional and agricultural support needs until the next main harvest. The Mission included three international FAO staff, t hree international WFP staff and a number of national staff from both agencies. The Mission was accompanied for one week by an observer from the European Commission’s Joint Research Centre (EC/JRC).

10/03/2016

FAO’s first forecast for global wheat production in 2016 points to a small decrease, with lower outputs expected in Europe and the United States of America. COUNTRIES IN NEED OF EXTERNAL ASSISTANCE: FAO estimates that, globally, 34 countries, including 27 in Africa, are in need of external assistance for food.

10/03/2016

This report is based on information available as of February 2016.

10/03/2016

International wheat prices declined in February as a result of reduced trade activity, while maize quotations were firmer on stronger demand. International prices of rice followed mixed trends depending on the origin. Overall, cereal quotations remained lower than in the corresponding period last year. In Southern Africa, maize prices continued to increase in February, although at a slower rate, and were at record highs. Prices increased also in several East African countries, reaching levels well above those of a year earlier, mainly supported by reduced domestic availabilities. In West Africa, coarse grain prices rose steeply in Nigeria in January. In South America, cereal prices in February increased sharply in several countries of the subregion. Most notably, prices were at record highs or well above those of a year earlier in Argentina, Brazil and Colombia mainly due to the depreciation of the national currencies.

01/03/2016

À la demande du Gouvernement de la République centrafricaine, une mission conjointe FAO/PAM a visité le pays du 26 Octobre au 28 Novembre 2015 pour estimer le niveau des récoltes et évaluer la situation alimentaire générale. En plus du personnel de la FAO et du PAM, les équipes de terrain comprenaient des représentants du Ministère du Développement Rural, du Ministère du plan et de la coopération internationale à travers l’Institut Centrafricain des Statistiques et d’Etudes Economiques et Social es (ICASEES), et de douze (12 ONG) dont quatre (4) ONG internationales (PU-AMI, Solidarités International, COOPI, TGH) et huit (8) nationales (Calebasse, ONFR-FC, GEPAD, GAPAFOT, ARND, Echelle, Kwa Ti Yaka, LIFA).

10/02/2016

Abundant supplies and strong export competition kept international grain prices low, with quotations of wheat and maize in January averaging well below their year-earlier levels. International rice prices followed mixed trends depending on the origin. In Southern Africa, maize prices increased sharply in Malawi and South Africa, and also strengthened in Zambia, reaching record highs in all three countries in January. This mostly reflects expectations of a steep reduction of the 2016 maize harvests due to drought conditions on top of the already tight domestic market supplies. Weaker currencies in the subregion exacerbated the price increases. In South America, cereal prices remained under upward pressure in January and at high levels in several countries, mainly due to the depreciation of the national currencies. In Argentina and Brazil, domestic prices of yellow maize were at record highs, well above their values in January last year.

05/01/2016

At the request of the Ecuadorian Government, FAO undertook a technical assistance to generate an integrated assessment climate impacts on the banana value chain in support of the Ecuador initiatives towards sustainable and climate-adapted strategies. Both biophysical and socio-economic analyses were carried out using a team of FAO and international experts. Evidence was generated on: (i) banana suitability under climate change in Ecuador and other banana producing countries; (ii) climate impacts on yields and potential diseases incidence for bananas in Ecuador; (iii) carbon footprint and greenhouse gas emissions from production to consumption, including transportation and waste disposal. Policy analysis focused on the Government measures aimed at ensuring a fairer distribution of returns between laborers, plantations owners and exporters. The studies were carried between September 2012 and December 2013 and the key findings were presented at a national multi-stakeholder workshop held i n January 2014 in Guayaquil, Ecuador.

01/01/2016

FAO and the OECD have jointly developed this practical guidance to help enterprises observe existing standards of responsible business conduct along agricultural supply chains. The guidance is a summary of existing voluntary standards and principles, including the Principles for Responsible Investment in Agriculture and Food Systems (CFS RAI) endorsed by the CFS in 2014. It does not aim to create any new standards, nor does it seek to substitute existing ones.

01/01/2016

Given the significance of agriculture to rural livelihoods, agricultural trade has the potential to significantly impact rural employment and incomes. Agriculture is the largest employer of the world’s poor, most of whom live in rural areas. As developing economies grow, and undergo structural transformation, employment tends to shift away from agriculture into other sectors, such as industry or services. Along the path of structural transformation, agricultural trade can speed up shifts in econ omic activity from agriculture to other sectors, resulting in asymmetries between sectors in terms of output growth and incomes, thereby posing both risks and opportunities for decent rural employment in developing countries.

01/01/2016

FAO and the OECD have jointly developed this practical guidance to help enterprises observe existing standards of responsible business conduct along agricultural supply chains. The guidance is a summary of existing voluntary standards and principles, including the Principles for Responsible Investment in Agriculture and Food Systems (CFS RAI) endorsed by the CFS in 2014. It does not aim to create any new standards, nor does it seek to substitute existing ones. Rather, the guidance aims to help c ompanies implement existing standards by providing recommendations on the steps that they should undertake to identify and address risks of adverse impacts that stem from their activities. This is part of a broader effort of FAO to promote good practices for agricultural investment.

01/01/2016

This paper summarizes the good practices by nine selected OECD countries that seek to promote responsible foreign investment in developing country agriculture, primarily by investors in their territory or jurisdiction. The study provides examples of the increasing trend of home countries in establishing binding legal norms and other mechanisms as safeguards that are relevant for agricultural investment. It finds that States apply some specific provisions to hold private corporate actors investin g in agriculture abroad accountable, for example in regard to bribery of foreign public officials. Investment home countries are also increasingly using safeguards relevant for agricultural investment for companies that are controlled by the State or seek its support. Furthermore, Public-Private Partnerships are increasingly used in development assistance projects as a means to promote responsible agricultural investment. In these cases, the safeguards usually imply the use of negotiated and app roved instruments such as the Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security (VGGT). The Principles for Responsible Investment in Agriculture and Food Systems (CFS-RAI), endorsed in 2014 by the Committee on World Food Security (CFS), will possibly become a major guidance instrument, given recent declarations by the G7 and G20.

01/01/2016

This is the 2015 edition of the annual compilation of statistics related to the international production, trade, and processing into juice of citrus fruits with grower and wholesale prices. The fruits covered are oranges, tangerines, lemons, limes and grapefruit. The statistics are disaggregated by fruit, by year, by region and by country from 1981/2 to 2013/14.

01/01/2016

This paper analyses foreign direct investment (FDI) flows in food, beverages and tobacco, including primary agriculture and retail, from 2003 to 2014. It provides information on global, regional and - where possible - national trends in FDI flows in food, beverages and tobacco. When data are available, this study also provides more detailed insights into particular qualitative traits of FDI flows, such as whether FDI seems to be market- or resource-seeking, or in how far changes in sub-sector-sp ecific investment could be linked to changes in consumer demand. Thus it contributes to the ongoing global debate on the relevance and characteristics of FDI in developing country agriculture.

17/12/2015

Climate forecasts point to a very likely continuation of drier-than-normal conditions in early 2016 increasing the likelihood of serious impacts on production across many areas of the subregion.

10/12/2015

International prices of wheat and maize generally declined in November and were lower than a year earlier. Overall, ample global supplies and weak export demand weighed on quotations. The FAO Rice Price Index remained on a decreasing trend, influenced by declines in Japonica and Aromatic rice prices. In Southern Africa, maize prices rose further in November and doubled their year-earlier levels in some markets, reflecting tight market supplies due to a sharp subregional production decline in 2015. Dry conditions affecting the start of the 2016 crop season and a general depreciation of domestic currencies in the subregion added to upward pressure on prices. In East Africa, significant cereal price increases were observed in most countries of the subregion in November. Prices reached exceptionally high levels in South Sudan, due to the current economic downturn, as well as in Uganda and the United Republic of Tanzania, as a result of sustained regional demand and reduced harvests this year. In the Caribbean, below-average harvests due to prolonged dry weather associated with the El Niño phenomenon underpinned prices in November. In Haiti, prices of domestically-produced maize and beans were well above those of a year earlier, while in the Dominican Republic prices of beans were some 40 percent higher than at the same time last year.