Markets and Trade

13/02/2014

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. It has been maintained by FAO/GIEWS since 1980 and is updated on a continual basis. This statistical report, which is a subset of CCBS data, presents the current-year cereal supply and demand balances for all sub-Saharan African countries, highlighting cereal import and food aid requirements of each country. This report is complement ary to the FAO/GIEWS report Crop Prospects and Food Situation and is published four times a year, with the same schedule.

04/01/2014

There has been a recent proliferation of simulation modelling exercises attempting to quantify the potential economic gains from further liberalization of agricultural trade, and in doing so, seeking to inform the current Doha Round of multilateral trade negotiations. This paper seeks to contribute to a better appreciation of what the results of simulation models actually mean, and the extent to which they can be used to inform debates relating to trade policy reform

01/01/2014

This paper describes challenges, opportunities and determinants of foreign investment in developing country agriculture for sustainable development. Options and good practices for generation of mutual benefits and prevention and mitigation of risks are presented.

01/01/2014

With the 2014 season fairly advanced, firmer crop estimates have been issued, which have resulted overall in a slight increase of 250 000 tonnes in the global paddy production forecast. At country level, prospects for the 2014 season output have improved since the October release of this report, particularly for China, Indonesia, the Republic of Korea, Nigeria, and Viet Nam. The higher figures more than compensated for a downgrading in India, hit by the cyclonic storm Hudhud , and in the Democra tic People's Republic of Korea and Thailand, which both endured severe precipitation shortfalls. Disruptions to agricultural activities caused by the Ebola outbreak also worsened prospects for Guinea, Liberia and Sierra Leone. At 744.7 million tonnes (496.6 million tonnes, milled basis), the resulting 2014 global production forecast would be slightly (0.2 percent) lower than the 2013 level, reflecting a 0. 1 percent contraction of both plantings and yields to 162.9 million hectares and 4.57 tonn es per hectare , respectively brought about by unfavourable weather conditions

01/01/2014

There is growing evidence that investing in developing countries’ agricultural sector is among the most efficient ways to reduce poverty and hunger. Agricultural investments can generate a wide range of developmental benefits, but these benefits cannot be expected to arise automatically and some forms of large-scale investment carry risks for host countries. Although there has been much debate about the potential benefits and risks of international investment, there is a lack of systematic evide nce on the actual impacts on the host country and their determinants. This paper summarizes the results of FAO’s case studies on the impacts of foreign agricultural investment on host communities and countries. The studies suggest that the disadvantages of large-scale land acquisitions often outweigh the few benefits to the local community. In countries where local land rights are not clearly defined and governance is weak, large scale land acquisition raises particularly high risks for the loca l community. These include reduced access to natural resources and the loss of livelihoods, which are likely to generate local opposition to the investment. Even from the perspective of the investor, land acquisition is unlikely to be the most profitable business model due to the high potential for conflict and damage to reputation. Conversely, the studies suggest that investments that involve local farmers as equal business partners, giving them an active role and leaving them in control of the ir land, have the most positive and sustainable effects on local economies and social development. These inclusive business models need strong external support for supporting farmers and facilitating the investor-farmers relationship in order to succeed. They also require ‘patient capital’, as financial returns to investment are unlikely to materialize in the first years. Beside the business model, other important factors include the legal and institutional framework in the host country, the ter ms and conditions of the investment contract and the social and economic conditions in the investment area. Strengthening the governance and capacity of institutions in host developing countries is essential to enhancing the developmental impacts of foreign agricultural investment.

01/01/2014

This report is issued on an annual basis to Members and Observers of the Sub-Group on Bananas of the Intergovernmental Group on Bananas and Tropical Fruits. It is prepared by the Market and Policy Analyses of Raw Materials, Horticulture and Tropical (RAMHOT) Products Team, Trade and Market Division, FAO, Rome, and the tables contained bring together the information available to FAO, supplemented by data obtained from other sources in particular with regard to preliminary estimates.

01/01/2014

With the disintegration of the Soviet Union 15 new countries entered the world stage. The CIS countries are very different in size, economic structure and agricultural profile. The same is true even for the smaller group of seven CIS countries that are members of the World Trade Organization (WTO).

01/01/2014

Multinational trading companies, and in particular the three largest banana traders (Chiquita, Dole and del Monte), have historically played a major role in the international banana trade, exerting substantial market power in particular on the purchasing side. These vertically integrated multinational firms engage in production, purchase, transport, and marketing of bananas. They own fleet and ripening facilities, and have their own distribution networks in the importing countries, creating im portant economies of scale. The scope of their operations and their influence over the banana trade have, however, changed over time. The combined market share of the top three companies was at its highest in the 1980’s, when they controlled almost two thirds (65.3%) of global banana exports2, and the share has gradually declined since. In 2013, the market share of the top three companies was slightly over one third (36.6%) and the share of the top five companies was 44.4%, down from 70% in 2002. As a consequence, other companies now account for over half of all exports.

01/01/2014

The low level presence (LLP) and adventitious presence (AP) of Genetically Modified Organisms (GMO) in internationally traded food crops have been a major issue of discussion recently. Asynchronous Approvals (AA) and zero tolerance policy have been reported to have trade diversion effects by some of the exporters. Therefore, FAO conducted a survey to evaluate the issue and examine the impact of LLP on trade flow. The survey was sent to national government organizations through FAO Representation s (FAORs), Codex contact points, and individual contacts in early 2013. Almost half of the respondents (47 percent) indicated that they produce GM crops for research or commercial use. 78 percent of respondents indicated that they have a GMO regulation; however, 22 percent either don’t have or are planning to have regulations in the future. High level of regional guidelines is a critical issue in food safety regulations worldwide. 37 percent of the respondents indicated that they have a LLP thre shold at least for one group of product (feed). The remaining 63 percent do not have any threshold limit for LLP related imports. Only 33 percent of the respondents indicated that they have a technical capacity to detect GMOs in imports.

01/01/2014

The production and trade of tropical fruits generate income, improving the livelihoods and food security of producers, who are almost exclusively smallholders in developing countries. They also contribute positively to meeting daily nutritional requirements, underpinning the importance of these fruits from both a commercial and nutritional perspective. Regardless of whether they are “super” or not, value is added at each step of the value chain – from farm-gate, through intermediaries (wholesale and retail), to the consumer. Significant progress has been made to explore measures to ensure that smallholders gain fairly from value addition along the chain. However, inadequate post harvest and transport infrastructure, resource limitation, institutional support and compliance with market access requirements are some of the reasons that smallholder producers have not been fully integrated. Therefore, forming like-minded players into legal entities, such as cooperatives, would better facili tate their integration through achieving economies of scale and improving their bargaining position. In this report, supporting evidence to some of the arguments put forward will be drawn from successful projects on bananas, tropical fruits and tea which were implemented in the Dominican Republic, Mexico and Indonesia, respectively, and supervised by the RAMHOT Team of the Trade and Markets Division of the Food and Agriculture Organization of the United Nations (FAO).

05/12/2013

The Global food price monitor was issued by GIEWS from 2010 until the end of 2014, reporting on food price developments at world, regional and country level with focus on developing countries. From January 2015 this report was replaced by the Food Price Monitoring and Analysis (FPMA) Bulletin.

05/12/2013

Latest estimates confirm a large increase in 2013 world cereal output; early prospects for 2014 wheat crop are mostly favourable. The benchmark United States wheat export price declined in November on generally favourable 2014 crop prospects. Prices of maize and rice also eased somewhat and were at levels well below those of a year earlier. Cereal imports of LIFDCs for 2013/14 are estimated to increase by some 4 percent, mainly reflecting reduced harvests in Africa and increased demand in Egypt.

01/12/2013

This document examines the existing policy framework impacting production and trade of jute, abaca, coir, kenaf and sisal (JACKS1). Policy discussion in this document is heavily biased towards producing countries, most of which are Least Developed Countries (LDC), because of the importance of these fibres to the economy of these countries and the attempt by these countries to articulate effective policies to accelerate the development of the respective fibre sub-sectors in a coherent manner.

28/11/2013

In the DPRK, despite a small reduction in planted area, overall crop production in 2013/14 is estimated to increase by about 5 percent. 2. A total of 5.98 million tonnes of food output (including paddy, cereals, soybeans, and cereal equivalent of potatoes) from cooperative farms, plots on sloping land, and household gardens for 2013/14 is expected. This estimate includes the 2013 main season harvest that was concluded and the forecast for 2014 early season crops. When paddy is converte d to milled rice and soybeans to cereal equivalent, total food production is estimated at about 5.03 million tonnes. 3. Unusually early and heavy rains in July and early August compromised maize and soybean yields but had little effect on paddy. 4. Soybean production recorded a second consecutive year of decline, due to a 6 percent reduction in yield. Main-season potatoes performed well this year, which bodes well for the seed supply for the 2014 early crop. However, supply of seed s for minor winter and spring wheat as well as barley is a constraint due to declining production over consecutive recent years.

14/11/2013

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. It has been maintained by FAO/GIEWS since 1980 and is updated on a continual basis. This statistical report, which is a subset of CCBS data, presents the current-year cereal supply and demand balances for all sub-Saharan African countries, highlighting cereal import and food aid requirements of each country. This report is complement ary to the FAO/GIEWS report Crop Prospects and Food Situation and is published four times a year, with the same schedule.

04/11/2013

Food Outlook is published by the Trade and Market Division of FAO under Global Information and Early Warning System (GIEWS). It is a biannual publication focusing on developments affecting global food and feed markets. Each report provides comprehensive assessments and short term forecasts for production, utilization, trade, stocks and prices on a commodity by commodity basis and includes feature articles on topical issues. Food Outlook maintains a close synergy with another major GIEWS publication, Crop Prospects and Food Situation, especially with regard to the coverage of cereals. Food outlook is available in English. The summary section is also available in Arabic, Chinese, French, Spanish and Russian.