The United Nations 2030 Agenda for Sustainable Development covers 17 goals, the second of which is “zero hunger”, namely: End hunger, achieve food security and improved nutrition and promote sustainable agriculture. (Click here for details)

Under this major goal, there are eight targets, the eighth of which is “Adopt measures to ensure the proper functioning of food commodity markets and their derivatives and facilitate timely access to market information, including on food reserves, in order to help limit extreme food price volatility”.

● Current Situation

Photo source: FAO website

As a response to the generalized food crisis of the early 1970s, the Committee on World Food Security prompted the creation of the Global Information and Early Warning System on Food and Agriculture (GIEWS). Over the years, GIEWS has established itself as the world’s leading source of information and as a respected authority on global food production, consumption and trade. It continuously monitors the food security situation in every country of the world and alerts the world to emerging food shortages.

About the World

Extreme Changes in Food Price Pose Threats to Food Security and Livelihood

Agricultural commodity prices are an indicator of changes in supply and demand. Past price volatility events have put in evidence the value of timely market information and analysis in order to mitigate the negative effects on low-income groups of population whose expenditure on food represents a large proportion of their total expenses. FAO plays a key role in monitoring, analyzing and disseminating food price data along the food supply chain, from producer to consumer through both domestic as well as international markets.

Photo source: internet

Extreme changes in food prices pose threats to agricultural markets, food security and livelihoods, particularly for the most vulnerable. The ways that countries can use to control food price fluctuation include improving price information, making the market operate more effectively, and stabilizing the price through government intervention, such as combining import and export tax and providing targeted security gateway mechanism to reduce the negative impact of price fluctuation. In the long run, agricultural investment can also prevent price fluctuations.

Text source: FAO website 

About China

COVID-19 Pandemic Has Limited Impacts on Chinese Agricultural Market 

Although the COVID-19 pandemic spreads globally, the Chinese agricultural market is relatively stable. The current international market has little influence on Chinese market except for some items with high trade dependency.

Photo source: sina.com.cn

China's grain output has been stable at more than 650 million tons for five consecutive years. The total supply and demand of rations is in balance and fully self-sufficient. Since the outbreak of the COVID-19 pandemic, the Chinese agricultural market has remained stable. During the period of severe epidemic, the connection was blocked between the production and sales for some "vegetable basket" items and in some regions, and the prices of agricultural commodities rose periodically. However, the market prices have returned to normal with the transportation and logistics improved and more enterprises back to work.

Text source: cereal.com.cn

●  Cases

About the World

COVID-19 Pandemic Underpins Food Price Increases

Disruptions to food supply chains and stronger demand triggered by the COVID-19 pandemic continued to underpin food price increases in April in several countries.

Photo source: sohu.com

Export prices of wheat increased in April due to strong international demand amid export control measures in the Black Sea region. International prices of rice also increased following temporary export restrictions and logistical bottlenecks in some exporting countries. By contrast, prices of maize plummeted on account of large global supplies and weaker demand for biofuel and animal feed.

In Southern Africa, the start of the main season harvest led to an increase in market supplies and instigated seasonal price declines of maize grain in several countries in April. Prices, however, remained well above their year-earlier levels due to the effects of reduced harvests in the previous year.

In East Africa, the Sudan and South Sudan, the upward pressure on prices of staple foods from the difficult macro-economic conditions and tight domestic availabilities was further exacerbated by trade and marketing disruptions related to the COVID-19 pandemic.

Text source: FPMA Bulletin

About China

Shenzhen Ensures Smooth Operation of Grain Market

Photo source: ifeng.com

In order to control the local grain market, Shenzhen Municipal Government has taken various measures to ensure smooth market operation, such as actively organizing grain supplies in production areas. Shenzhen Grain Group has ensured the grain and oil supply and storage by high-tech means. It has led the way in China by packing bulk wheat by tons, which has improved the capacity of grain storage, transportation and emergency support so as to ensure the sufficient supply and the stable price in Shenzhen’s grain market. 

Photo source: sohu.com

In February 2019, Shenzhen Cereals Holding Co., Ltd., a state-owned enterprise of Shenzhen Municipality was restructured and listed at Shenzhen Stock Exchange. It became the first company in China with its overall grain business listed at the capital market. This restructuring has been conducive to using capital market to strengthen resource integration, deepen business reform, and create a first-class "good service provider for food supply chain" and "secure and high-quality food provider".

Text source:  Shenzhen Municipal State-owned Assets Supervision and Administration Commission

●  Background

Sustainable Development Goals (SDGs) Initiated by the United Nations

On January 1, 2016, the 17 Sustainable Development Goals (SDGs), including 169 targets, of the 2030 Agenda for Sustainable Development — adopted by world leaders in September 2015 at an historic UN Summit — officially came into force. Countries will mobilize efforts to end all forms of poverty, fight inequalities and tackle climate change, while ensuring that no one is left behind.