The World Trade Organization (WTO) ensures that the Agricultural exports have increased by 2,5% during the first half of the year compared to the same period in 2019, with a further increase in March and April. However, the crisis has put further pressure on the drop in food prices and, therefore, on the income of producers, the Agency points out.
The new informative note It also indicates that while global food stocks and production levels of the most consumed staple foods (rice, wheat and corn) are at historic levels, The impact of the pandemic on employment and income has increased the number of people suffering from hunger around the world.
However, the WTO also explains that “there is currently no reason why the current health crisis should become a food crisis.” Disruptions in food supply chains are a risk, but it is the trade policy decisions of governments that will determine how the situation evolves.
The measurements of Initial responses taken by governments They were intended to address members’ most pressing concerns: containing the virus to save lives and ensuring food security at home. In addition to lockdowns, these measures included policies that facilitated and restricted agricultural trade: new sanitary and phytosanitary (SPS) measures and tariff reductions, as well as export restrictions. There was also an increase in stockpiling and agricultural trade flows changed significantly, due in particular to a sudden shift in consumption patterns brought about by the measures implemented.
Initial measures focused on ensuring the immediate availability of food have been followed by a second phase of policies that seek to repair broken supply chains and help producers agricultural to cope with the “new normal” situation. While many governments have gradually relaxed lockdown measures, removed several export restrictions and introduced domestic support measures to support the agricultural sector, the pandemic continues to spread in different parts of the world and is expected to continue to influence the demand and supply of agricultural products.
During the crisis, Agricultural trade has been more resilient than overall tradeThis reflects the essential nature of food and the relative income inelasticity of demand, as well as the fact that most agricultural trade (mainly grains and oilseeds) takes place in bulk marine shipments that have not been subject to major disruption.
This picture obscures the fact that demand for certain agricultural products (e.g. non-food agricultural products such as raw hides, wool or flowers) fell sharply, while it increased for others (e.g. staple foods, processed fruits and vegetables), reflecting initial panic buying and increased home consumption.
In March, agricultural exports rose by 3,3%, while in April the increase was 0,6%. However, in the fourth month of the year, exports of some food products fell. In particular for higher-value products, such as fresh produce, dairy products and meat, which generally rely more on sales to restaurants, schools and the tourist sector than to households. In addition, high-value perishable products transported by air were hit harder by the sudden collapse in air passenger traffic, which reduced air cargo capacity and raised costs.
The impacts have varied by region. Asia saw its agricultural exports fall in March 2020, followed by Europe and North America in April. But some regions have seen exports rise compared to the same period in 2019, with the largest increases in South America, driven by Asian demand for the region's exports of products such as soybeans, sugar and meat.
In order to contribute to the availability and affordability of food, the Agency asserts that "Trade remains a key part of the solution to countries' food security problems, especially at a time when people's incomes are under pressure.«.
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