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Global Garlic Imports Surged But Record Chinese Exports Curb Price Growth

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Global Garlic Imports Surged But Record Chinese Exports Curb Price Growth

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IndexBox has just published a new report: ‘World – Garlic – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

Global garlic imports rose by 13% to 2.5M tonnes in 2020, boosted by the increased popularity of home cooking and a widespread reputation that the product helps to strengthen immunity. Indonesia remains the largest global importer, followed by Viet Nam and Malaysia. China dominates global garlic exports, supplying 89% of the total volume. Chinese manufacturers managed to ramp up exports which led to a drop in prices. 

Global Garlic Imports

In 2020, approx. 2.5M tonnes of garlic were imported worldwide; increasing by 13% compared with the previous year. The total import volume increased at an average annual rate of +5.5% from 2012 to 2020. In value terms, garlic imports totaled $3B (IndexBox estimates) in 2020.

In 2020, Indonesia (624K tonnes), distantly followed by Viet Nam (254K tonnes), Malaysia (118K tonnes) and Brazil (118K tonnes) represented the major importers of garlic, together making up 44% of total imports. The following importers – Bangladesh (103K tonnes), the U.S. (102K tonnes), Pakistan (101K tonnes), the Philippines (87K tonnes), the United Arab Emirates (70K tonnes), Russia (59K tonnes), Saudi Arabia (53K tonnes), the Netherlands (46K tonnes) and the UK (41K tonnes) – together made up 26% of total imports.

In value terms, Indonesia ($460M), Viet Nam ($305M) and the U.S. ($235M) appeared to be the countries with the highest levels of imports in 2020, with a combined 33% share of global imports. Brazil, Malaysia, Pakistan, the UK, the Netherlands, Russia, the Philippines, Bangladesh, the United Arab Emirates and Saudi Arabia lagged somewhat behind, together comprising a further 27%.

Pakistan saw the highest growth rate of the value of imports, in terms of the main importing countries over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

China dominates the global exports, supplying 89% of the total volume. Chinese garlic supplies hit record highs of near $2B which provides a solid base for the global surge in demand. The Indonesian market for imported garlic is almost entirely met by supplies from China.

The average garlic import price stood at $1,185 per tonne in 2020, falling by -7.1% against the previous year. From 2012 to 2020, the most notable rate of growth in terms of prices was attained by the U.S., while the other global leaders experienced more modest paces of growth.

Source: IndexBox Platform

global buckwheat
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Russian Export Ban Could Lead to a Shortage on the Global Buckwheat Market

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IndexBox has just published a new report: ‘World – Buckwheat – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

In the immediate term, the global buckwheat market may face a shortage due to an export ban introduced in Russia. The country, being the largest producer and exporter of buckwheat, restricted exporting unprocessed buckwheat, coarsely ground buckwheat groats, and crushed buckwheat grain from June 5, 2021, to August 31. Russia took this step to preserve the volumes of the buckwheat grain for its domestic consumption and prevent a spike in prices inside the country. China, Latvia and Ukraine featured the most prominent increases in imports from Russia in 2021. 

Global Buckwheat Imports

In 2020, overseas purchases of buckwheat decreased by -4.4% to 174K tonnes, falling for the second year in a row after two years of growth. In general, total imports indicated notable growth from 2012 to 2020: its volume increased at an average annual rate of +4.5% over the last eight years. In value terms, buckwheat imports skyrocketed to $112M in 2020.

In 2020, Ukraine (32K tonnes) and Japan (32K tonnes) represented the largest importers of buckwheat in the world, together recording approx. 37% of total imports.

In value terms, Japan ($23M), Ukraine ($15M) and Italy ($8.4M) were the countries with the highest levels of imports in 2020, together accounting for 41% of global imports.

In 2020, the average buckwheat import price amounted to $640 per tonne, growing by 23% against the previous year. There were significant differences in the average prices amongst the major importing countries. In 2020, the country with the highest price was the U.S. ($929 per tonne), while Lithuania ($309 per tonne) was amongst the lowest.

Buckwheat Exports from Russia

In 2020, shipments abroad of buckwheat decreased by -8.1% to 59K tonnes, falling for the second consecutive year after two years of growth. In value terms, buckwheat exports surged to $29M in 2020.

Ukraine (16K tonnes), Latvia (12K tonnes) and China (6.8K tonnes) were the main destinations of buckwheat exports from Russia, together comprising 58% of total exports.

In value terms, Latvia ($6.9M), Ukraine ($6.3M) and Japan ($3.7M) appeared to be the largest markets for buckwheat exported from Russia worldwide, with a combined 59% share of total exports.

The average buckwheat export price stood at $489 per tonne in 2020, picking up by 67% against the previous year.

Source: IndexBox Platform

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Despite Record Exports from Ecuador, Banana Prices Continue to Rise on Robust Demand

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IndexBox has just published a new report: ‘World – Bananas – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The demand for bananas remained robust amidst the pandemic. Despite record exports from Ecuador, which remains the world’s largest banana supplier, prices in the largest import markets are rising due to strong demand and local COVID-related imbalances in supply chains. Driven by the growing population, the global banana market could reach 143M tonnes by 2030. The increasing epidemic of the TR4 fungus could reduce the growth potential and accelerate the rise in prices.

Key Trends and Insights

Bananas confidently retain their position as the most sought-after fruit in the world. Consumption in 2020 reached 124M tonnes, which is 6% more than the previous year. The increase in demand for bananas in the context of a growing world population will stimulate a market expansion of up to 143M tonnes by 2030.

During the pandemic, demand for bananas remained high in most countries. According to Eurostat, imports to EU countries rose by 5.6% y-o-y in 2020. Banana imports to the U.S. remained at the same level of the previous year (4.7M tonnes), while imports to China fell by 10% to 1.7M tonnes. Despite this, product consumption in China increased by 2.4% amid an increase in domestic production by 3.4% and a decrease in exports by 38.7%.

Strong demand amid supply chain disruptions during a period of tight constraints led to price increases in 2020 that varied from country to country. Bananas have gone up in price most significantly in Russia. In the first quarter of 2021, prices increased by one and a half times more compared to the previous year due to a combination of factors of stable demand within the country, a weakening of the ruble and a local shortage of supplies from Ecuador. The average annual banana price in the EU rose from $0.88 per kg in 2019 to $0.90 per kg in 2020, and in the U.S. it went from $1.14 per kg in 2019 to $1.22 per kg in 2020.

Ecuador remains the world’s largest banana supplier, accounting for 18.4% of the global export market. Despite labor shortages during a period of tight constraints and disruption to supply chains, the country increased banana exports by 7% y-o-y in 2020, driven by increased U.S. shipments and increased production from expanding acreage.

The threat to the global banana market comes not only from the COVID-19 pandemic, but also from the growing epidemic of the TR4 fungus that affects banana plantations. This blight has been known for a long time, but recently, it has been rapidly spreading to new regions. This creates the risk of a banana shortage in the world market and acceleration of rising prices. The market for organic bananas may be particularly affected, as crop protection chemicals are not permitted in their cultivation. In order to solve the problem, new genetically modified varieties and new means of their protection are being developed, which will lead to a restructuring of the value chains in the banana industry.

Global Banana Production

For the fourth year in a row, the global market recorded growth in production of bananas, which increased by 2% to 120M tonnes in 2020. The total output volume increased at an average annual rate of +1.2% from 2012 to 2020. In value terms, banana production rose remarkably to $78.3B in 2020 estimated in export prices.

India (31M tonnes) remains the largest banana producing country worldwide, accounting for 26% of total volume. Moreover, banana production in India exceeded the figures recorded by the second-largest producer, China (12M tonnes), threefold. Indonesia (7.5M tonnes) ranked third in terms of total production with a 6.2% share.

From 2012 to 2020, the average annual rate of growth in terms of volume in India totaled +2.0%. The remaining producing countries recorded the following average annual rates of production growth: China (+0.5% per year) and Indonesia (+2.4% per year).

Global Banana Imports

In 2020, the volume of bananas imported worldwide rose sharply to 23M tonnes, with an increase of 7.1% against 2019. The total import volume increased at an average annual rate of +4.5% over the period from 2012 to 2020. In value terms, banana imports amounted to $15.3B in 2020.

In 2020, the U.S. (4.7M tonnes), distantly followed by China (1.7M tonnes), Russia (1.6M tonnes), Germany (1.3M tonnes) and Japan (1.1M tonnes) were the key importers of bananas, together committing 45% of total imports. The following importers – the Netherlands (1,008K tonnes), the UK (978K tonnes), Italy (782K tonnes), France (700K tonnes), Belgium (676K tonnes), Canada (591K tonnes), Poland (559K tonnes) and Argentina (439K tonnes) – together made up 25% of total imports.

In value terms, the U.S. ($2.5B) constitutes the largest market for imported bananas worldwide, comprising 17% of global imports. The second position in the ranking was occupied by Russia ($1.2B), with a 7.5% share of global imports.

Source: IndexBox Platform

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China Dominates the Global Chestnut Market While European Countries Increase Imports Gradually

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IndexBox has just published a new report: ‘World – Chestnut – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

China remains an unrivaled leader in global chestnut consumption with a share of 81% of the total market. Chestnuts are widely used there in cooking, roasted with sugar, or for processing. The vast majority of chestnuts in China are produced domestically. Italy acts as the major importer of chestnuts worldwide, while Turkey, Portugal and France feature the highest pace of import growth. 

Consumption by Country

China (1.9M tonnes) remains the largest chestnut-consuming country worldwide, accounting for 81% of total volume. The majority of chestnuts in the country are sourced domestically – China also features as a top global chestnut producer. The volume of consumption in China exceeded the figures recorded by the second-largest consumer, Bolivia (89K tonnes), more than tenfold. The third position in this ranking was occupied by Turkey (61K tonnes), with a 2.7% share.

In China, chestnut consumption expanded at an average annual rate of +1.2% over the period from 2012-2020. In the other countries, the average annual rates were as follows: Bolivia (+5.2% per year) and Turkey (+1.9% per year).

In value terms, China ($4B) led the market, alone. The second position in the ranking was occupied by Bolivia ($259M). It was followed by Turkey.

Imports by Country

In 2020, the volume of chestnuts imported worldwide dropped to 93K tonnes, with a decrease of -13.9% against the previous year. In value terms, chestnut imports contracted to $250M (IndexBox estimates) in 2020.

Italy was the largest importing country with an import of about 24K tonnes, which resulted at 26% of total imports. France (7.7K tonnes) occupied an 8.3% share (based on tonnes) of total imports, which put it in second place, followed by Switzerland (5.9%) and Thailand (5.1%). Taiwan (Chinese) (3.8K tonnes), China (3.5K tonnes), Germany (3.5K tonnes), Turkey (3.2K tonnes), Spain (3K tonnes), the U.S. (2.8K tonnes), South Korea (2.6K tonnes), Austria (2.4K tonnes) and Portugal (2.2K tonnes) held a minor share of total imports.

Imports into Italy increased at an average annual rate of +4.1% from 2012 to 2020. At the same time, Turkey (+44.8%), Portugal (+7.8%), France (+6.4%), Germany (+4.5%), South Korea (+3.3%), Spain (+2.6%) and Taiwan (Chinese) (+1.3%) displayed positive paces of growth.

In value terms, Italy ($64M) constitutes the largest market for imported chestnuts worldwide, comprising 26% of global imports. The second position in the ranking was occupied by Germany ($18M), with a 7.1% share of global imports. It was followed by Switzerland, with a 6.3% share.

Source: IndexBox Platform

ginger market
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India Clashes with China in the Global Ginger Export Market

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IndexBox has just published a new report: ‘World – Ginger – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

In the wake of the pandemic, the ginger market has accelerated its growth as demand for foods with a reputation for immunity system health has soared to unprecedented heights. India, which almost tripled its export of ginger in 2020, may become a serious competitor to the main global supplier – China. The majority of the developed countries have increased the volume of imports, which, in the context of Covid restrictions and a shortage of container traffic, has led to an increase in prices for the product.

Key Trends and Insights

The pandemic contributed to the growth of the global ginger market of 2020 by 7.6% y-o-y to 4.5M tonnes. The increased focus on foods with a reputation for benefits to the immune system during the Covid-19 epidemic, as well as the rise in the popularity of Asian foodstuffs and condiments in Western countries, have been the main drivers for the increased demand for ginger.

China, with a volume of supplies of 578K tonnes, traditionally remains the world’s largest exporter of ginger, but in 2020 the country met swiftly growing competition from India, which tripled its exports to 102K tonnes. India is a leader in the production of ginger with a 45% share of the world output, which gives it every chance to seriously press China and other countries in the export market.

Ginger imports to Europe are growing rapidly amid the pandemic. In 2020, 197K tonnes were imported to the region, which is 13% more than the previous year. The leading European importer is the Netherlands, which accounts for 40% of total imports to the former European Union, with the volume of 79K tonnes, followed by the UK (15% or 29K tonnes) and Germany (14% or 28K tonnes). China remains the largest supplier to European countries, but due to the high EU requirements for quality, suppliers of organic ginger from Peru and Brazil are gaining an increasing share of this market.

The lack of containers and the high cost of shipping ginger in the global market remain key challenges at the moment. The rise in logistics costs led to an increase in the average world import price from $1.2 per kg in 2019 to $1.5 per kg in 2020. Additionally, the structure of the international supply of the product has changed – the volume of exported fresh ginger has slightly decreased, while the amount of dried and frozen ginger has grown.

Increased demand for ginger from a growing population should act as the main driver for the market, which is expected to reach 6.6M tonnes by 2030. Soft drinks and syrups containing ginger have become increasingly popular, which should further stimulate market growth.

Global Ginger Consumption

The global ginger market surged to $7.3B in 2020, with an increase of 19% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). Over the period under review, the total consumption indicated a buoyant increase from 2012 to 2020: its value increased at an average annual rate of +7.3% over the last eight years.

India (1.9M tonnes) remains the largest ginger-consuming country worldwide, accounting for 43% of total volume. Moreover, ginger consumption in India exceeded the figures recorded by the second-largest consumer, Nigeria (762K tonnes), threefold. The third position in this ranking was occupied by Nepal (307K tonnes), with a 6.9% share.

In India, ginger consumption expanded at an average annual rate of +11.9% over the period from 2012-2020. The remaining consuming countries recorded the following average annual rates of consumption growth: Nigeria (+9.4% per year) and Nepal (+2.9% per year).

In value terms, India ($3.4B) led the market, alone. The second position in the ranking was occupied by Nigeria ($1.4B). It was followed by Indonesia.

Global Ginger Exports

In 2020, global ginger exports rose notably to 918K tonnes, with an increase of 11% against the year before. In general, total exports indicated resilient growth from 2012 to 2020: its volume increased at an average annual rate of +7.1% over the last eight-year period. In value terms, ginger exports skyrocketed to $1.3B (IndexBox estimates) in 2020.

China was the largest exporter of ginger in the world, with the volume of exports amounting to 578K tonnes, which was near 63% of total exports in 2020. It was distantly followed by India (102K tonnes), the Netherlands (62K tonnes) and Thailand (48K tonnes), together making up a 23% share of total exports. Brazil (32K tonnes), Peru (26K tonnes) and Nigeria (18K tonnes) followed a long way behind the leaders.

In value terms, China ($719M) remains the largest ginger supplier worldwide, comprising 56% of global exports. The second position in the ranking was occupied by the Netherlands ($156M), with a 12% share of global exports. It was followed by India, with a 7.5% share.

Source: IndexBox Platform

sweet potato
Archives, EU Trade, Global Trade Daily

The European Sweet Potato Market Features Record Import Growth

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IndexBox has just published a new report: ‘World – Sweet Potato – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

Sweet potato imports in the Netherlands, Germany and Spain are gaining momentum. From 2018 to 2020, imports to Germany increased by 20% and reached 47.4K tonnes. Over the same period, supplies to Spain tripled from 3.8K to 15.3K tonnes, while imports to the Netherlands rose by 44% and peaked at 174K tonnes. In 2020, the Netherlands overcame the UK and emerged as the top sweet potato importer. 

Global Sweet Potato Imports

In 2020, approx. 755K tonnes of sweet potato were imported worldwide; picking up by 6.9% on 2019 figures. Over the period under review, imports saw a buoyant expansion. The pace of growth was the most pronounced in 2016 with an increase of 28% y-o-y (IndexBox estimates). Global imports peaked in 2020 and are expected to retain growth in the immediate term.

In value terms, sweet potato imports expanded significantly to $687M in 2020. In general, imports posted a prominent increase. The pace of growth was the most pronounced in 2014 with an increase of 26% year-to-year. Over the period under review, global imports hit record highs in 2020 and are expected to retain growth in the near future.

Sweet Potato Imports by Country

The Netherlands (174K tonnes) and the UK (159K tonnes) were the major importers of sweet potato in 2020, recording near 23% and 21% of total imports, respectively. Canada (76K tonnes) took a 10% share (based on tonnes) of total imports, which put it in second place, followed by France (7.1%), Germany (6.3%) and Belgium (5.7%). The following importers – Spain (15K tonnes), the U.S. (15K tonnes), Italy (15K tonnes), Malaysia (15K tonnes), Japan (13K tonnes) and Lao People’s Democratic Republic (12K tonnes) – each reached an 11% share of total imports.

In value terms, the largest sweet potato importing markets worldwide were the Netherlands ($152M), the UK ($119M) and Canada ($65M), together comprising 49% of global imports. These countries were followed by Germany, France, Belgium, Japan, the U.S., Spain, Lao People’s Democratic Republic, Malaysia and Italy, which together accounted for a further 32%.

In 2020, the average sweet potato import price amounted to $909 per tonne, almost unchanged from the previous year. Over the period from 2012 to 2020, it increased at an average annual rate of +1.4%. There were significant differences in the average prices amongst the major importing countries. In 2020, the country with the highest price was Germany ($1,337 per tonne), while Italy ($582 per tonne) was amongst the lowest.

Source: IndexBox Platform

almonds
Archives, Global Trade Daily, Imports/Exports

U.S. Almond Exports Hit Record $1.1B in Tandem with Rising Output

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IndexBox has just published a new report: ‘U.S. – Almonds – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

U.S. almond exports hit a record high of approx. $1.1B in 2020, which was equal to 296K tonnes. An increase in harvested area, especially in California, led to a higher almond output that enabled to propel exports. India became the main importer of American almonds, accounting for 74% of the total export volume.

U.S. Almond Exports

In 2020, U.S. shipments abroad of almonds increased by 38% to 296K tonnes (IndexBox estimates), rising for the second consecutive year after two years of decline. In value terms, almond exports totaled $1.1B in 2020.

India (218K tonnes) was the main destination for almond exports from the U.S., accounting for a 74% share of total exports. Moreover, almond exports to India exceeded the volume sent to the second major destination, China (32K tonnes), sevenfold. The third position in this ranking was occupied by Hong Kong SAR (12K tonnes), with a 4% share.

From 2007 to 2020, the average annual growth rate in terms of volume to India totaled +15.1%. Exports to the other major destinations recorded the following average annual rates of exports growth: China (+33.1% per year) and Hong Kong SAR (+3.0% per year).

In value terms, India ($808M) remains the key foreign market for almond exports from the U.S., comprising 74% of total exports. The second position in the ranking was occupied by China ($110M), with a 10% share of total exports. It was followed by Hong Kong SAR, with a 3.7% share.

The average almond export price stood at $3,676 per tonne in 2020, down by -24.3% against the previous year. Average prices varied noticeably for the major foreign markets. In 2020, the highest prices were recorded for prices to India ($3,708 per tonne) and the United Arab Emirates ($3,602 per tonne), while the average price for exports to Turkey ($3,248 per tonne) and Hong Kong SAR ($3,387 per tonne) was amongst the lowest.

Source: IndexBox Platform

dry peas
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Strong Demand for Livestock Feed Propels the Chinese Dry Peas Market

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IndexBox has just published a new report: ‘China – Peas (Dry) – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The Chinese dry peas market is becoming an attractive export destination for overseas suppliers. In 2020, China increased the volume of imports of dry peas by 45%, as the country is actively recovering its livestock reserves after an outbreak of swine fever and is in dire need of crops for animal feed. Against the background of rising grain prices, peas are becoming a more affordable alternative component in animal feed.

Key Trends and Insights

China remains the largest consumer of dry peas in the world with a 35.9% (IndexBox estimates) share of the global market. In 2020, the country’s consumption of dry peas jumped up by 20% due to increased use in animal feed. China continues to actively restore its livestock population after the swine fever epidemic, with the need for feed increasing significantly. Dry peas have become an excellent alternative replacement with the scarcity of corn and other more expensive grains such as soybeans and barley.

China is the second-largest pea-producing country. In 2020, the harvest in the domestic market exceeded the indicators of the previous year by 2.5% and reached 3M tonnes. Despite this, the country’s production cannot fully meet the growing domestic demand, and China remains the world’s leading importer of dry peas. In 2020, the country increased the volume of imports by 45% to 2.9M tonnes. About 94% of imported dry peas are sourced from Canada, and almost all of the remainder comes from the U.S. (4.3%).

In 2021-2022, Ukraine and Russia could challenge those leading suppliers in the Chinese import market, as pea yields are growing rapidly in these countries, and as work is underway on phytosanitary agreements to access the Chinese market.

The growing demand for food products in the context of an increasing population will remain a primary market driver. The demand for feed and fodder in China will further stimulate the market, but as the pig population recovers, the increase in demand in this segment will slow. Taking this into account, the market is expected to grow at an average annual rate of +2.8% and reach 7.7M tonnes by 2030.

Market Size

In 2020, approx. 5.9M tonnes of dry peas were consumed in China, picking up by 20% compared with the previous year’s figure. In general, consumption recorded a resilient expansion.  Over the period under review, consumption attained the maximum volume in 2020 and is expected to retain growth in the near future.

For the third consecutive year, the Chinese dry peas market recorded growth in sales value, which increased by 20% to $10.3B in 2020. In general, consumption posted a strong increase.

China’s Dry Peas Imports  by Country

In 2020, the volume of dry peas imported into China soared to 2.9M tonnes, rising by 45% compared with 2019 figures. In value terms, dry peas imports skyrocketed to $821Min 2020.

In 2020, Canada (2.7M tonnes) was the main supplier of dry peas to China, with a 94% share of total imports. Moreover, dry peas imports from Canada exceeded the figures recorded by the second-largest supplier, the U.S. (125K tonnes), more than tenfold.

The average import price stood at $282 per tonne in 2020, declining by -2.9% against the previous year. Average prices varied noticeably amongst the major supplying countries. In 2020, the country with the highest price was France ($345 per tonne), while the price for Canada ($278 per tonne) was amongst the lowest.

Source: IndexBox Platform

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Archives, Global Trade Daily, Special Reports

Striving for Sustainability in Global Food Systems

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As the global community gears up for the 2021 UN Food Systems Summit, it is significant that preparations are also underway by Global Reporting Initiative to deliver a new sector reporting standard for agriculture, aquaculture, and fishing. The Summit aims to leverage the power of food systems to deliver progress on the Sustainable Development Goals (SDGs). Yet, unlocking the contribution of companies in the food production sectors will be impossible without clarity on their sustainable development impacts.

As part of GRI’s Sector Program, which aims to deliver 40 Sector Standards over the coming years, the exposure draft version of the Sector Standard for Agriculture, Aquaculture, and Fishing is currently out for public comment. The Sector Program has a remit to provide the global best practice for transparency within sectors, helping organizations meet stakeholder expectations for comprehensive and comparable sustainability reporting.

We are prioritizing agriculture, aquaculture and fishing because these sectors provide for basic and essential societal needs: food, most obviously, but also raw materials, such as fibers and fuels. They also have shared and overlapping materiality, which steered our rationale for bringing them under one umbrella.

The Standard will add to the reporting landscape for the sectors, bridging the gap on sector topics where stakeholder expectations are evolving and scrutiny is increasing. It will deliver disclosures that consider biodiversity and natural resources, measures to mitigate climate change, as well as how to adapt farming and fishing practices in ways that minimize their negative impacts.

This focus closely dovetails with the objectives of the Food Systems Summit, for which the pre-summit activity starts in July. The UN articulates the aims as ensuring access to safe and nutritious food for all; shifting to sustainable consumption patterns; boosting nature-positive production; advancing equitable livelihoods; and building resilience to vulnerabilities, shocks, and stress.

Research and rationale

The draft Standard’s content is the culmination of more than 12 months of rigorous research by our Sector Team, drawing on authoritative sources and a multi-stakeholder process. A 19-member expert working group was instrumental in developing the exposure draft. Reflecting diverse backgrounds, it includes representatives from five continents and constituencies, with a unique combination of sectoral skills and organizational experience, including crop and animal production, aquaculture, and fishing.

The proposed Sector Standard will help companies increase recognition and understanding on their shared sustainability challenges. It includes relevant reporting topics that are covered by GRI’s (sector-agnostic) topic-Specific Standards – for example, climate adaptation, biodiversity, waste, food safety, and occupational health – as well as introducing seven new topics.

By including topics not covered by existing GRI Standards, we have expanded the breadth of reporting guidance for agriculture, aquaculture, and fishing organizations to identify their most significant impacts – thereby supporting decision-useful data that can be a catalyst for the adoption of more sustainable practices.

The seven new topics

The newly introduced topics in the draft Standard are:

1. Food security recognizes the sectors’ central role in food production, guiding organizations to describe commitments to ensure their operations contribute to the stability of food supply and access to food, including how they work with other organizations.

2. Land and resource rights calls on companies to report how they respect individuals’ and communities’ land rights (including those of indigenous people). It also asks about their operations and suppliers whose access or rights to natural resources cannot be assured.

3. Living income addresses whether companies provide enough for workers and producers supplying to them to afford a decent standard of living. The topic also deals with reporting on the proportion of employees paid above living wage.

4. Natural ecosystem conversion covers policies, commitments and monitoring tools to reduce or eliminate activities that change natural ecosystems to another use or profoundly change an ecosystem’s structure or function.

5. Soil health guides reporting on soil management plans and fertilizer application.

6. Pesticides use focuses on how organizations manage and use chemical or biological substances for controlling pests or regulating plant growth.

7. Animal health and welfare addresses the approach to animal health planning and use of welfare certification schemes or audits, as well as disclosing the use of any medicinal or hormone treatments.

Grounded in the SDGs

With positive and negative impacts that link to the SDGs, all of the topics covered in this Sector Standard, and the way it is structured, will make it easier for businesses to understand their contribution to the achievement of the SDGs – and how they can contribute towards solutions.

Perhaps more than any other sector, agriculture, aquaculture, and fishing organizations have wide-ranging impacts that touch on all of the 17 SDGs. In particular, this new Standard makes multiple linkages between topics and goals on ending poverty (Goal 1); ending hunger (Goal 2); ensuring the availability and sustainable management of water and sanitation (Goal 6); promoting decent work for all (Goal 8); reducing inequalities (Goal 10); ensuring sustainable consumption and production (Goal 12); taking climate action (Goal 13); protecting life below water (Goal 14) and life on land (Goal 15); ensuring peace and justice (Goal 16); and building partnerships (Goal 17).

We need your input

The global public comment period to gather feedback on the exposure draft for Agriculture, Aquaculture, and Fishing Sector Standard closes on 30 July. We encourage you to channel your considerations on this draft’s feasibility, completeness, and relevancy by completing an online questionnaire. The more input from all interested groups and stakeholders, the more we can do to ensure the delivery of a Standard that is fit-for-purpose.

Our hope for the final Standard, which we intend to launch in 2022, is to empower organizations to achieve meaningful and consistent sustainability reporting that supports sustainable food systems and encourages responsible fishing and farming practices. We all know that companies within these sectors are essential for providing the food and resources that human wellbeing depends on. Let’s ensure that they can do so in a way that contributes to lasting and sustainable solutions.

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ABOUT THE AUTHOR

Margarita Lysenkova joined GRI Standards Division in 2019 and has been instrumental in the development of the new Sector Program, contributing to the GRI Oil and Gas Sector Standard and leading the pilot project for the Sector Standard for Agriculture, Aquaculture, and Fishing.

With a professional background in corporate, UN and non-for-profit sectors across four countries, Margarita’s expertise spans international labour standards and sustainability. Previous roles include working for the International Labour Organization in Geneva, and in financial reporting with a Belgian multinational. Margarita holds degrees in economics (Saint Petersburg University of Economics & Finance) and business management (ESC Rennes School of Business).

ABOUT GRI

Global Reporting Initiative is the independent, international organization that helps businesses and other organizations take responsibility for their impacts, by providing the global common language to report those impacts – the GRI Standards.

wheat
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Wheat Harvest Is Expected to Increase Globally, But Prices Continue to Rally on Inflationary Expectations

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IndexBox has just published a new report: ‘World – Wheat – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

This year, harvests in the EU, the U.S., the UK, Argentina, Morocco and Ukraine are expected to increase, leading to a growth in wheat production. Even though global stockpiles of grains will remain high, there are boosted expectations for inflation due to forecasts of record demand and increased prices for other cereal grains. The rising global population and bioethanol production are key factors leading to this growth in demand for wheat. Another driving factor is the emerging trend in the EU to use more wheat in animal feed rather than barley.

Key Trends and Insights

In 2021, global wheat production is expected to rise by 13M to 932M tonnes (IndexBox estimates). Overall, crop production is expected to increase due to positive weather conditions in the EU, the U.S., the UK, Pakistan, Brazil, Egypt, China, India and Argentina. This record level of production will help keep global grain stockpiles high. In Russia, Kazakhstan, Australia and Canada, a small drop in crop production is expected. In Canada, this is a result of decreasing acres designated for wheat production and instead allocating the space for canola and barley.

In May 2021, global export prices for corn sharply increased, and wheat followed in suit. This was largely due to fears of poor weather conditions in the Northern Hemisphere. Another impact comes from the inflationary expectations that reflect the expected demand growth. In Canada, the price grew by $48 per tonne, in the US by $56 per tonne and in the EU by $43 per tonne. In Australia, the price also grew by $35 per tonne due to strong exports, while in Argentina, it grew by $27 per tonne. Russian prices grew by $34 per tonne but remained at a competitive level. World Bank expects the average wheat price (Wheat, US, HRW) to surge by 9% in 2021 to $230 per tonne and then to continue growing gradually.

Global demand for wheat in 2021 should reach a record level primarily due to increased demand in South Asia for food products containing wheat. Consumer food preferences in both India and China have shifted toward wheat products and thus driven up demand.

In the next few years, the use of wheat in animal feed is expected to expand, especially in the EU, where a high yield will enable this growth. A similar trend is expected in the U.S. and the UK, driven by growing wheat production. However, in East Asia, the use of wheat in animal feed is predicted to decrease against the rising use of corn.

In the next decade, bioethanol production should additionally cause the market for wheat to grow. Another key factor will be the increased demand for antiseptics arising from the COVID-19 pandemic. This surge in the antiseptic industry is expected to continue driving bioethanol production for at least the next few years.

Wheat Consumption by Country

The global wheat market stood at $295B in 2020, increasing by 3% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price).

China (280M tonnes) constituted the country with the largest volume of wheat consumption, accounting for 31% of total volume. Moreover, wheat consumption in China exceeded the figures recorded by the second-largest consumer, India (105M tonnes), threefold. The third position in this ranking was occupied by Russia (66M tonnes), with a 7.2% share.

From 2012 to 2020, the average annual growth rate of volume in China stood at +1.6%. In the other countries, the average annual rates were as follows: India (+1.4% per year) and Russia (+14.6% per year).

In value terms, China ($123.6B) led the market alone. The second position in the ranking was occupied by India ($27.7B). It was followed by Russia.

The countries with the highest levels of wheat per capita consumption in 2020 were Russia (455 kg per person), France (331 kg per person) and the UK (266 kg per person).

Wheat Imports by Country

In 2020, supplies from abroad of wheat decreased by -8.1% to 167M tonnes, falling for the second consecutive year after three years of growth. In value terms, wheat imports contracted slightly to $39.9B in 2020.

In 2020, Egypt (9.6M tonnes), China (8.2M tonnes), Italy (8M tonnes), Indonesia (7.2M tonnes), Algeria (7M tonnes), Brazil (6.6M tonnes), the Philippines (5.7M tonnes), Japan (5.4M tonnes), Morocco (4.9M tonnes), Nigeria (4.7M tonnes), the Netherlands (4.4M tonnes) and Spain (4.1M tonnes) represented the main importer of wheat in the world, generating 45% of total import. Mexico (4M tonnes) occupied a minor share of total imports.

From 2012 to 2020, the biggest increases were in China, while purchases for the other global leaders experienced more modest paces of growth.

In value terms, the largest wheat importing markets worldwide were Egypt ($2.7B), China ($2.3B) and Italy ($2B), with a combined 18% share of global imports.

China saw the highest rates of growth with regard to the value of imports in terms of the main importing countries over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Source: IndexBox AI Platform