World trade in food products

According to Food and Agriculture Organization of the United Nations (FAO)he global agri-food trade has more than doubled since 1995, reaching a value of $1.5 trillion in 2018 with increasing exports from emerging and developing countries, which account for more than a third of total world exports.

“Markets must be trusted as an integral part of the global food system. This is even more important in light of major disruptions, regardless of whether they come from the coronavirus disease (COVID-19), locust outbreaks or climate change,” says FAO Director-General QU Dongyu.

And according to the data from the report “State of the market of agricultural products in 2020 (SOCO 2020)“It is claimed that it is world trade and well-functioning markets are essential to the development process as they can foster inclusive economic growth and sustainable development and strengthen resilience to crises.

The importance of value chains

Rise Value chains global growth is the result of rising incomes, the reduction of trade barriers and technological progress, which has transformed markets and business processes, connecting farmers with merchants and consumers from all regions and countries.

Average and short-term, 10% increase in the participation of agriculture in global value chain can result in an increase in labor productivity of about 1.2%, according to the report.

“Global value chains can facilitate the integration of developing countries into global markets. By closely linking our food markets, they also provide a mechanism for disseminating best practices to promote sustainable development,” adds the FAO Director-General.

Technology as an ally of commerce

Las digital technologies They can help markets work better and can improve farmers’ access to them. Innovations, such as e-commerce food, can benefit both farmers and consumers. However, to ensure that the dividends of digital innovation are shared with the poorest, the current digital divide in agriculture needs to be reduced.

Adoption of more inclusive business models, such as contract agriculture and blockchains, can also help farmers better integrate into modern, more complex value chains.

For example, participating in contract farming can increase farm income by more than half, according to an analysis of leading studies on contract farming. However, the report highlights a general lack of information on the various effects of contract farming, beyond its effects on farmer welfare.

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