Trade in Agricultural Raw Materials and Livestock
Food production needs to perpetually scale to satisfy growing demand and population growth as global per capita consumption of food is now increasing faster than population growth. Total agricultural commodity trade by value has increased by 5% annually over the 20 years to 2018 due to increasing trade by developing countries. The traditional bulk commodities market is growing slowly relative to intermediate and consumer products in the agrifood sector as major industry players increasingly assume ownership of all links in the value chain. Of some 35 of the most significant agricultural raw materials on the World Bank Commodity Price Data “pink sheet”, only ten have prices which are higher in nominal and real US dollar terms than they were in 2010.
Agricultural Development and Consolidation
Agricultural value chains are undergoing increasing integration and consolidation through acquisitions, mergers and joint ventures. There is also concentration in input, production, trading, processing, and retail, with these links increasingly concentrated in major industry players. There is significant development in agricultural technologies such as big data, drones or technologies to better use fertilisers and pesticides.
The Trade in Agricultural Raw Materials and Livestock report discusses the wholesale trade in agricultural raw materials and livestock, which represent essential building blocks for most human and animal food, and human beverages. It includes comprehensive information on the value chain of various commodities from wheat to seeds, cotton, fish, poultry, game and flowers. There are profiles of 33 companies including South African subsidiaries of multinationals such as Monsanto, and local companies such as Afgri, whose acquisition of the South African Bank of Athens will increase its financial services penetration in the small business and agrifood sectors and co-operative NWK, in which Grindrod subsidiary Grindrod Trading sold its share.