Latest news with #FoodOutlook
Zawya
2 days ago
- Business
- Zawya
FAO forecasts record highs for global food crops amid market uncertainty
The Food and Agriculture Organization of the United Nations (FAO) has released its latest Food Outlook report, forecasting a generally positive outlook for global food commodity markets. According to the FAO, production is expected to increase across all major commodities, with the exception of sugar. The report highlights anticipated record-high global output of rice, maize, sorghum, and oilseeds. However, the FAO also cautioned that global food production remains vulnerable to adverse weather, ongoing geopolitical tensions, trade policy shifts, and wider economic uncertainty. 'While agricultural production trends appear solid, drivers that could negatively impact global food security are increasing,' said FAO Chief Economist Maximo Torero. The late biannual publication provides market assessments and updated forecasts for the production, trade, utilisation and stocks of major food commodities, including wheat, coarse grains, rice, oilcrops, sugar, meat, dairy products, and fisheries. It also estimates the global food import bill and includes special thematic chapters addressing the impact of avian influenza, changing trade patterns since 2022, potential incentives for fish fraud in global agrifood systems, and the implications of decarbonising the maritime sector for food imports. Key findings from FAO's latest Food Outlook report: • Global wheat production is forecast to increase modestly in the coming year, while per capita food consumption declines. Output gains are anticipated to be largely driven by a 13% increase in the European Union owing to a weather-driven upturn in yields, as well as a potential record harvest in India driven by increased planting areas. • Coarse grain production is expected to increase by 3.4% to a record level, buoyed by solid prospects in Brazil, the European Union and especially the United States of America, which is forecast to boost maize output by 6.0% mostly due to an expansion in sowings. More favourable weather ought to lift maize production in Southern Africa as well. • FAO also released its first forecast for world rice production, anticipating a 0.9% annual increase to reach a new record high of 551.5 million tonnes, due mostly to anticipated production increases in Asia. International rice trade is forecast to expand by 1.4% in 2025 to reach a record high of 60.5 million tonnes, fuelled by strong demand from Africa and rising exports from India and South America. Global per capita food consumption of rice, the most important grain for human diets, is expected to increase globally, with a particularly robust 2% increase in low-income food-deficient countries. FAO also released its first forecast for world rice production, anticipating a 0.9% annual increase to reach a new record high of 551.5 million tonnes, due mostly to anticipated production increases in Asia. International rice trade is forecast to expand by 1.4% in 2025 to reach a record high of 60.5 million tonnes, fuelled by strong demand from Africa and rising exports from India and South America. Global per capita food consumption of rice, the most important grain for human diets, is expected to increase globally, with a particularly robust 2% increase in low-income food-deficient countries. The Food Outlook also presents FAO's updated figure for the global food import bill (FIB) in 2024, which is estimated to have risen by 3.6% from the previous year to nearly $2.1t. This increase was primarily driven by a 29.3% surge in import costs for coffee, tea, cocoa and spices, an 8.1% increase in the import bill for fruits and vegetables, and a 5.6% rise in that for meat products. By contrast, the import bill for other food commodity groups declined, including a 4.6 %decrease for cereals. In 2025, trade tensions and policy uncertainty will likely affect the global food import bill by influencing import volumes and prices, especially for sensitive products like tropical beverages and animal goods. The impact will vary by country and commodity, depending on factors like import dependency and availability of alternatives. Adverse weather events and supply chain disruptions may further drive up import costs. Avian influenza The Food Outlook includes a special feature examining how highly pathogenic avian influenza (HPAI) is impacting the poultry sector around the world. Despite recurrent outbreaks over the past four years, poultry meat export patterns have remained resilient. In 2025, Brazil, the world's third-largest poultry meat producer, accounting for nearly 30% of global exports, reported its first commercial poultry farm case of HPAI. Global hen egg production reached 91 million tonnes – or approximately 1.7 trillion eggs – in 2023, with China contributing 38%, followed by India and the United States at about 8% and 7%, respectively. Although only 2.2 million tonnes are typically traded, that volume nearly doubled in 2024. As a result, egg price volatility remains an issue. The impact of HPAI on food production is mainly felt in the egg-laying sector, as broiler chickens have a shorter production cycle and are typically raised in closed housing systems. HPAI has 'escalated into one of the most significant biological threats to the global poultry sector,' affecting more than 173 million chickens in the United States of America alone since 2022 and triggering outbreak management and farmer indemnity costs exceeding $1.4 billion as of late 2024. HPAI variants spread by migratory wild birds have long been a problem, but outbreaks since 2020 show a more persistent and widespread pattern with greater economic impacts. The impact of HPAI on food production is mainly felt in the egg-laying sector, as broiler chickens have a shorter production cycle and are typically raised in closed housing systems. Other special chapters The Food Outlook contains a set of other special chapters on key topical issues. One chapter analyses global fertiliser trade flows since 2022, highlighting the Russian Federation's growing share in the global export market across most major fertiliser product categories. Another feature examines the shifts in global grain trade, noting that both the Russian Federation and Ukraine, which together account for nearly a quarter of global wheat, maize and barley exports, have shown resilience and adaptability. A separate chapter explores the main drivers of international fertiliser prices, reporting that the cost of a basket of nitrogen, phosphorus and potassium fertilisers averaged $437 per tonne in May 2025, down from the historical peak of $815 per tonne in April 2022. Another chapter assesses the economic incentives behind 'fish fraud,' a risk heightened by the large volumes of aquatic foods globally traded, the complexity of supply chains, and the fact that many products lose distinguishing features once filleted or processed. Economic incentives can lead to practices as species substitution, falsification of the declared catch area, and presenting farmed fish as wild caught. The last special chapter in the report discusses the potential implications of decarbonising the international maritime sector for net food-importing developing countries. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Yahoo
3 days ago
- Business
- Yahoo
Output of key food commodities 'on course for new records'
The global production of core agricultural commodities, including rice, maize, sorghum and oilseeds, are expected to reach 'record levels', according to research from the FAO. The UN agency's latest assessments indicate a relatively optimistic outlook for global food commodity markets, with production anticipated to increase across all commodities, except sugar. Global wheat production is forecast to increase 'modestly' in the coming year while per capita food consumption declines, according to the biannual publication. Output gains are anticipated to be driven by a 13% increase in the EU 'owing to a weather-driven upturn in yields, as well as a potential all-time record harvest in India driven by increased planting areas', the FAO said. Coarse grain production is expected to increase by 3.4% to a 'record level', buoyed by 'solid prospects' in Brazil, the EU and especially the US, which is forecast to boost maize output by 6% mostly due to an expansion in sowings. More favourable weather ought to 'lift' maize production in southern Africa as well, the report said. FAO also released its first forecast for world rice production, anticipating a 0.9% annual increase to reach a new 'record high' of 551.5 million tonnes, due mostly to 'anticipated production increases in Asia'. The UN agency's report said global food production remains 'vulnerable' to adverse weather conditions, as well as ongoing geopolitical tensions, trade policy uncertainties, and economic conditions. 'While agricultural production trends appear solid, drivers that could negatively impact global food security are increasing,' FAO chief economist Maximo Torero said. International rice trade is forecast to expand by 1.4% in 2025 to reach a high of 60.5 million tonnes, fuelled by 'strong demand from Africa and rising exports from India and South America'. Global per capita food consumption of rice is expected to increase globally, with a particularly 2% increase in 'Low-Income Food Deficit Countries'. The Food Outlook also presented FAO's updated figure for the global food import bill (FIB) in 2024, which is estimated to have risen by 3.6% from the previous year to nearly $2.1trn. This increase was primarily driven by a 29.3% surge in import costs for coffee, tea, cocoa and spices, an 8.1% increase in the import bill for fruits and vegetables, as well as a 5.6% rise for meat products. By contrast, the import bill for other food commodity groups declined, including a 4.6% decrease for cereals. In 2025, trade tensions and policy uncertainty will likely affect the global food import bill by influencing import volumes and prices, especially for sensitive products like tropical beverages and animal goods, according to the report. The impact will vary by country and commodity, depending on factors like import dependency and availability of alternatives. Adverse weather events and supply chain disruptions may further drive up import costs. The FAO Food Outlook includes a special feature examining how high pathogenicity avian influenza (HPAI) is impacting the poultry sector around the world. Last month, Brazil – the world's third-largest poultry meat producer accounting for nearly 30% of global exports – reported its first case of HPAI on a commercial poultry farm. Global hen egg production reached 91 million tonnes – or approximately 1.7 trillion eggs – in 2023, with China contributing 38%, followed by India and the US at about 8% and 7%, respectively. Although only 2.2 million tonnes are typically traded, that volume nearly doubled in 2024. As a result, egg price volatility 'remains an issue'. HPAI has 'escalated into one of the most significant biological threats to the global poultry sector', the FAO said, affecting over 173 million chickens in the US since 2022, with costs exceeding $1.4bn by late 2024. The egg-laying sector is particularly impacted due to its longer production cycle, unlike broiler chickens raised in closed systems. "Output of key food commodities 'on course for new records' – FAO" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
