Food markets still uncertain because of Covid's fault

ROME - Still uncertainty from Covid-19 in global food markets but the sector will show greater resilience to the crisis than others. This is the picture that emerges from the new FAO Food Outlook report with the first forecasts in the 2020-2021 period for the most marketed commodities, cereals, oils, meat, dairy products, fish and sugar. Although food is sufficient globally, reports the FAO, the significant drop in economic growth due to the pandemic has translated into greater difficulty for people living in countries already affected by hunger. As for the various sectors, the indications on supply and demand for cereals bode well, with a production that will exceed the record of 2019 by 2.6% and which will subsequently settle with + 2.2%. Meat will decrease by 1.7% also due to the effect of drought as well as from coronavirus; since January 2020, the FAO reports prices which have decreased by 8.6%. The pandemic will continue to severely affect the fish markets, especially fresh products and the best-selling species in the restaurant business, such as shrimp and salmon. In 2019-2020 sugar production is expected to decrease for the second consecutive year and for the first time in 3 years, to fall below the estimated level for global consumption; on the other hand, trade supported by low prices and the replenishment of stocks in some importing countries is growing.

Despite market disturbances, world milk production is proving resilient, with potential growth of 0.8% in 2020. However, exports are expected to decline by 4% following the drop in demand for imports. Finally, on the oilseeds front, FAO forecasts indicate a contraction between supply and demand triggered by the marked drop in production.