FAO expects new record in food trade

 Global food trade has accelerated and is on the verge of setting a new record in both volume and value.

This is stated in a new report published by the Food and Agriculture Organization of the United Nations (FAO). According to the report, in the current calendar year, global food imports are expected to hit an all-time high of over $1,750 billion (€1,511 billion); this represents a 14 percent increase over 2020. Compared to the earlier forecast in June 2021, this would result in a 12 percent increase.

FAO attributes this to higher international food prices and a tripling of transport costs. Meanwhile, rapidly rising food and energy prices pose serious challenges for poorer countries and consumers who spend a significant portion of their income on these basic needs. In developing regions, FAO expects total food import bills to increase by 20 percent compared to 2020. Low-income, food-deficit countries will face even greater cost increases as a result of higher costs and higher import volumes.

Meanwhile, FAO described the outlook for global production of major cereals as robust, with record corn and rice harvests expected in 2021. However, the use of grains for human consumption and animal feed is expected to grow faster, the organization said. On the other hand, forecasts for the 2021/2022 season for oilseeds and derivatives indicate an improvement in the overall supply situation.

FAO forecasts that global SUGAR production will recover in 2021/2022 after a three-year decline, but will still lag global consumption. Global MEAT production is projected to increase in 2021, mainly due to rapid growth in CHINA, especially pork. And FAO also expects a global increase in MILK production.