By the end of 2021, the global food import bill should extend beyond $1.75 trillion dollars, marking a 14 per cent increase from 2020, and 12 per cent higher than the previous forecast, ProAgro Group reports, citing report of UN Food and Agriculture Organisation.
According to FAO’s new Food Outlook, trade in foodstuffs had shown “remarkable resilience” to disruptions throughout the pandemic, but rapidly rising prices, posed significant challenges for poorer countries and consumers. The increase is driven by higher price levels of internationally traded food commodities and a threefold increase in freight costs.
Developing regions account for 40 per cent of the total and their food import bill is expected to rise by 20 per cent compared to the year before. In terms of products, developing regions are facing sharp increases in basic staples such as cereals, animal fats, vegetable oils and oilseeds.
World output prospects for major cereals remain robust, with record harvests expected for maize and rice. Cereals for consumption, and animal feed, should grow even faster, according to the report.
The forecast expects some improvements in the supply situation for oilseeds and derived products, but their end-season stocks could remain below average.
