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FAO urges open trade and cooperation to absorb agricultural shocks
The FAO’s SOCO 2026 report says global food and agriculture trade value has risen almost fivefold to about $2 trillion since 2000.
Nations should respond to more frequent shocks to global food and agriculture markets by reinforcing openness to trade, according to a new Food and Agriculture Organization of the United Nations report. The FAO said in its State of Agricultural Commodity Markets (SOCO) 2026 study that stronger international cooperation, diversified partners, and effective policies can help countries restore market balance after disruptions.
The report examines how food and agricultural markets can absorb a range of shocks, including disasters and extreme weather, socioeconomic crises and conflicts, as well as biological and technological events. It argues that all countries benefit when trade networks are well-functioning and integrated, while fragmentation and declining cooperation can increase uncertainty, with heightened consequences for the world’s poorest countries.
The FAO said global food and agricultural markets have shown resilience since 2000, with trade volumes adjusting and recovering relatively quickly after disruptions. It also found that food trade networks are more interconnected, as countries increasingly trade with a larger number of partners, giving markets alternative sourcing options when supply is disrupted.
At the same time, the report warns that cereal trade networks remain highly concentrated, with a small group of exporters accounting for large shares of global wheat, maize and rice exports. It said shocks hitting major cereal exporters can cascade through trade networks, reducing trade and raising prices beyond the initial disturbance location.
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