World Farming Agriculture Commodity news - Weekly Updated -
In 2020, plant-based sales reached a record high of $4.2bn globally. As the internet and the latest technologies advance, consumers have more options and access to information when it comes to their food. Newer generations are calling for more sustainable food practices as climate change becomes increasingly apparent. One could argue that meat substitutions are growing in Western markets because of it. COVID-19 also increased awareness surrounding the connection between public health and meat consumption and the plant-based market is now expected to reach a whopping $95bn by 2029. The rise in demand for alternative protein isn’t that surprising due to recent events and the many benefits that come along with it. Some attractive benefits of plant-based eating for consumers are environmental health, boosted immune systems, reduced inflammation, fiber, and overall better health among others.
Agribusiness companies are implementing new technologies to optimize the movement of products from the field to the consumer or to improve their internal supply chains. Multiple players aim to bridge or skip value chain steps by direct-to-consumer delivery, meal kits, food e-commerce, etc., to reduce supply chain inefficiencies and waste. Innovations around value chains also include startups enabling farmers to monitor the quality of crops and trace them along supply chains. That allows the businesses to prove their sustainability by making products traceable from seed to shelf. Banks, lenders, and carbon trading markets can also use data generated to offer financial solutions tied to specific assets.
The global wine surplus is not just a localized issue; it has far-reaching implications, affecting wine producers and grape growers worldwide. In regions like Riverland, Australia, and parts of Spain, farmers are increasingly replacing traditional vineyards with more profitable crops such as almonds and watermelons, signaling a significant shift in agricultural practices. The economic pressures and changing drinking patterns, including a pivot towards premium wines and alternative beverages, are reshaping the global wine landscape, forcing many to rethink their cultivation strategies. As the industry confronts this oversupply crisis, there's a growing conversation around sustainability and innovation in wine production. Governments and trade associations are stepping in with interventions to mitigate the impact, including subsidies and support for farmers transitioning to other crops. Moreover, there's an emerging trend of repurposing vineyards for sustainable endeavors, such as solar energy farms, reflecting a broader industry shift towards environmental consciousness and diversification.While the current situation presents significant challenges, it also offers an opportunity for the wine industry to reimagine its future. As farmers, producers, and governments navigate this crisis, the transformation of vineyards across the globe could herald a new era of sustainability and resilience in wine production, ultimately reshaping the industry for generations to come.
The United Nations Food and Agriculture Organization (FAO) has released a groundbreaking report, "The Unjust Climate", highlighting the disproportionate financial losses suffered by female-headed households in rural areas due to climate change. Specifically, the study finds that women in low- and middle-income countries face significantly higher income losses from heat stress and flooding compared to their male counterparts, exacerbating existing inequalities.
According to the FAO's comprehensive analysis, female-headed households lose an average of eight percent more income from heat stress and three percent more from flooding than male-headed households. This disparity is further illuminated when considering the potential impact of a one-degree Celsius average temperature increase, which would result in a 34% higher total income loss for women. The report underscores the critical need for addressing the wide gaps in agricultural productivity and wages between genders, which are only expected to widen if current trends continue.
On March 8, 2024, Tanzania's government provided a crucial update on the ongoing sugar shortage that has gripped the nation since October of the previous year. Prof Kenneth Bengesi, the Director General of the Sugar Board of Tanzania (SBT), announced the arrival of 32,000 tonnes of imported sugar, with an additional 4,700 tonnes awaiting distribution. This move comes as part of the efforts to mitigate a crisis that saw sugar prices skyrocket across the country. According to Prof Bengesi, the government's intervention, including the importation of 200,000 tonnes of sugar, has begun to show positive results. With 32,000 tonnes already distributed and more on the way, Tanzanians can expect some relief from the exorbitant prices that have plagued the market. Meanwhile, domestic sugar production is witnessing a gradual recovery, climbing to 60% of its capacity despite the adverse effects of excessive rainfall on the industry's infrastructure.
World Farming Agriculture Commodity news - Short update - 1st Week March 2024
Wheat is the second largest grain worldwide based on grain acreage and second largest based on total production volume. The global production volume of wheat came to almost 785 million metric tons in the marketing year of 2023/24. This was a decrease of about four million tons compared to the previous year. Wheat stocks are also forecast to increase to about 281.7 million metric tons worldwide by 2023/2024. The European Union is the second ranked wheat producing region. It was forecast that the region would yield more than 137.5 million metric tons of wheat by 2032, accounting for about one-fifth of the world wheat production. In 2023, around 49.6 million were planted and 37.3 million acres of wheat were harvested in the United States. Almost every U.S. state is involved in the nation’s wheat production, with North Dakota and the ‘Wheat State’ Kansas producing the largest volume. Many developing countries are highly dependent on the Ukraine and Russia's wheat imports. As of June 2022, Armenia and Mongolia fully relied on Russia for meslin and wheat imports. Laos reported the most significant dependence on meslin and wheat supplies from Ukraine, at over 98 percent of total imports of these commodities
The global production of vegetable oils has seen a steady increase since the beginning of the century, reaching a peak of 210.4 million metric tons in 2022/2023. The most common vegetable oil types include palm oil, soybean oil, canola oil, and sunflower oil. In the 2023/2024 crop year, soybeans were the leading type of oilseed in the world. That year, about 398 million metric tons of soybeans were produced worldwide.
With a population of over 1.4 billion, China has become the second-largest meat market in the world in terms of revenues, only second to the United States. Nevertheless, when it comes to the per capita consumption of meat, China lags well behind most of the developed countries. Despite China’s long history of livestock production and meat (such as pork, lamb, beef, and poultry) consumption, meat has not always been accessible and affordable for the common population. According to a Statista global consumer survey in 2022, only less than 80 percent of Chinese said they ate meat, the second-lowest among all 39 surveyed countries. However, as disposable income and nutritional knowledge increase, meat products are becoming an increasingly critical part of the Chinese diet.
Rapid changes in human demographics and eating habits have led to substantial increases in livestock production. Cattle meats such as beef and veal are some of the most widely consumed types of meat across the globe. The United States is the top producer of beef and veal, with more than 30 million cattle slaughtered annually. Pork is widely consumed and produced in China and Europe. As of April 2023, China was home to the largest number of pigs with over 450 million heads.
Farm equipment has probably had the most significant impact on how farmers raise crops and care for livestock. In addition to tractors, combines, and robotic milk machines, smart farming solutions could completely change operations in arable farming. The market size for drones in smart farms will increase to 8.6 billion U.S. dollars by 2028. The agricultural internet of things (IoT) in Europe is expected to grow from over one billion in 2021 to 2.06 billion U.S. dollars by 2025.
Market size and demand of fresh fruit and vegetables in Europe has brought an opportunity for large external suppliers especially in developing countries. Europe is responsible for half of all global fresh fruit and vegetable trade. Germany and the Netherlands are the leading importers in this market. In 2021, Germany imported 12.6 billion euros of fresh fruit and vegetables. The largest annual fruit harvest occurs in Asia. China alone produces over 250 million metric tons of fruit annually.
Farming is one of the oldest businesses and comprises the cultivation of crops and livestock for food or use as biofuel. Major crops include corn, soybean, hay, rice, and wheat. The livestock sector mainly concentrates on cattle and dairy farming, hog and pig farming, poultry and egg production, and sheep and goat farming. Common farming methods include conventional and organic farming. Conventional farming is the main farming method used during the 20th century and still dominates most farming today. Depending on national regulations, farmers are allowed to use chemical plant protectors and chemical fertilizers. Intensive mass livestock breeding is widely practiced. In contrast, the organic farming sector sets higher animal- and plant-friendly standards. Specific laws regulate organic crop production and livestock breeding. They dispense the use of chemical fertilizer and use natural fertilizers and pesticides instead.
Commodities March 10
