A new report released today by the UN Food and Agriculture Organization (FAO) sees world food trade accelerating to near record levels in both quantity and value terms.
In a new edition of its Food Outlook report, the FAO says that while the world’s food trade has shown “remarkable resilience in the face of adverse impacts throughout the COVID-19 pandemic,” soaring food and energy prices are causing serious problems for poorer countries and consumers who are spending a large part of their income on these basic necessities.
The FAO expects global food imports to reach record levels in 2021, exceeding $1.75 trillion. This represents a 14 percent increase over the previous year and a 12 percent increase over the June 2021 projection. Those price increases are due to higher international food prices as well as a threefold increase in transport costs.
Developing regions account for 40 percent of total imports and the total value of food imports is expected to increase by 20 percent over 2020 according to oldypak lp report. Even faster growth is expected in low-income food-deficit countries, driven more by higher costs than higher food imports.
Developing regions are facing steep price increases for basic foods such as grains, animal fats, vegetable oils and oilseeds, while in developed regions price increases are mostly seen in value-added product categories such as fruits and vegetables, fishery products and beverages.
The biannual Food Outlook provides an overview of market trends in supply and demand for the world’s staple foods including cereals, vegetable oils, sugar, meat, dairy products and fish. It also examines trends in futures markets and transportation costs of food commodities.