At the 2021 United Nations Climate Change Conference (UKCOP26), the world’s top twelve agricultural trading and processing companies come together to discuss the issue of climate change with the prevalence of the supply chain for agriculture-based products, having a net-zero emission objective as their common and centralized mission. The advancement in the import and export practices and activities for agricultural commodities are focused on by the companies.
Many international organizations have started prioritizing the need to improve farming practices and supply chain management for the agricultural sector, starting with the key commodities belonging to the agriculture products category. The top companies – ADM, Amaggi, Bunge, Cargill, Golden Agri-Resources, JBS, Louis Dreyfus Company, Olam, Wilmar, Marfig, Viterra and COFCO International, talked collectively about the key agricultural commodities’ trade volumes which include more than half Brazilian soy exports and global palm oil import and export both.
Brazil Soy Exports and Demand
According to the United States Department of Agriculture (USDA) study, the USA is the largest producer of soy with a high growth market. However, the growth spikes for Brazil’s soybean meals market share will reach around 25% by the end of 2031. World soybean exports and imports are projected to increase 26.7% (36.2 million tonnes) according to these studies. Variant diet and protein-intake priority have rose the demand for the imports of crops such as soybeans and feed grains. Countries such as China uses soybean as their primary food source for feeding livestock and hog herd.
Read More: US Soybean Shipments To China Will Slump After The Delays
Evaluated from Brazil export data 2020, the highest exports are recorded in the month of May with an approximate export value of 23.02%, while the least exports are recorded in the month of January with an approximate share value of 0.59%. The following Brazil soybean exports, integrated from our platform, shows a steady increase up until June 2021, and have decreased throughout the next following months of the year 2020.
Palm Oil Trade and Trends
Vegetable oils are the highest form of agricultural commodities in the world, with palm oil being the highest commodity to be traded between countries. According to the aforementioned studies, the trade of palm oil is going to surpass the growth of the soybean oil trade, which has a growth projection of about 13% by the end of 2031.
India palm oil import is one of the highest recorded traded in the world for palm oil. Palm oil is likely to grow about 34% to 4.4 million tons in 2030-2031. Examine the India import data 2021 below that highlights the imports of palm oil in the South-Asian country from another South-Asian country and the top producer of palm oil in the world – Indonesia. India imports of palm oil from Indonesia are the highest in September 2021 with an import value of $1,413.15 million, while the least import value is in June 2021 so far.
Top Producers and Products
China and the USA are the world’s largest producers of agricultural commodities. While China is known for its high production of rice and wheat, the USA has high production of corn and soybeans.
As per our global trade database, we found the interpretation of findings that China exported the highest share of Rice in the month of March 2021 with an approximate value of 21.04%, while the USA exported the highest share of corn in the month of January 2021. The following table shows the export comparison between China and the USA top agricultural commodities in 2021.
There are many companies that are focusing on improving their ways of doing business for enhancing the techniques of their business conduct to eliminate the carbon footprint, while simultaneously meeting their target of 1.5 °C for the objective of climate change reformation. According to our trade data experts, the top commodities of the agriculture industry are suspected to go through changes in their farming practices and supply chain management, resulting in fluctuations in the trade flows. It implies certain accountability on all industry experts of their sector-specific requirements to examine import-export records carefully to strategize operations.
