In The News
The agribusiness market made 1,062.88 US$ billion in exports (2012). In the last fifteen years the face of food and agricultural products has undergone drastic changes, with Global trade on a constant rise. Let’s explore the 5 key trends in the arena:
#1 United States at the Top
Statistics formulated by the United Nations Conference on Trade and Development (UNCTD) show that the USA has been on the top of the charts of major exporters and importers of food and agricultural products from 1995 to 2012. Yet a closer analysis reveals that while in 1995 it contributed to 11.7% of the world’s total exports, in 2012 its share had diminished to 9.2%. Turkey has the least exports and Sweden the least imports.
#2 Steady Rise in Export Of Agricultural Finished Products
The evaluation done by the COMTRADE data base has also revealed that in the world export market, share of agricultural final products has increased by 11% from the 1980’s to 2000s. This phenomenon is witnessed in both industrial and developing countries irrespective of major tariff escalations.
#3 Major Fall in the Imports of Germany and Japan
With regular international price movements and exchange rate fluctuations, global trading patterns undergo substantial changes on a daily basis. Importing food and agricultural products formed a major part of Germany and Japan’s global trade. While in 1995 Germany and Japan contributed to 10.2% and 12.2% of world’s total imports respectively, this situation changed considerably by 2012 with decrease in both their shares. Germany’s numbers came down to 6.2% and Japan’s to 5.9%.
#4 Vegetables and Fruit, Rule the Roost
When it comes to agricultural commodity exports, vegetables and fruits are the most exported, 21 % in 2012. Second in line are cash crops like coffee, tea, cocoa and spices with 16.8 % export in the same year. Followed by dairy products and feed stuff.
Thus it is primary food commodities like cereals and vegetables that are most exported and imported.
#5 3rd World Countries High on Cash Crop exports
With the demand in 3rd world countries surpassing the production, their imports of primary food products are high, while their major exports are cash crops. For example Brazil is the largest exporter of coffee, most of which is imported by the U.S which has the highest consumers of coffee.