World Grain - July 2020 - 28

FEATURE: ANALYSTS SEE V-SHAPED ECONOMIC RECOVERY IN 2021

On the supply side it's a situation
where stocks are comfortable
and prospects for production
continue to be positive globally.
Abdolreza Abbassian, senior economist for the FAO

28

AMPLE SUPPLY OF GRAIN
If consumption indeed rises to near
normal levels in the coming months,
Abbassian said the grain industry is
well-equipped to meet that demand.
"On the supply side it's a situation
where stocks are comfortable and
prospects for production continue to
be positive globally," he said. "That
doesn't mean we don't have several
areas of concern. There are weather
issues in northern and central Europe
and locust outbreaks in part of Africa
and Asia. But overall we don't expect
major problem in terms of supply."
$EEDVVLDQPDUYHOHGDWKRZH൶FLHQWly the grain transportation industry has
performed during the pandemic while
dealing with numerous roadblocks,
ERWKOLWHUDOO\DQG¿JXUDWLYHO\
"We have faced major problems in
terms of logistics and distribution of
products to consumers," he said. "But
one way or another, they have found a
solution. They may not be perfect, but
they are solutions nonetheless."
*UL൶WK VDLG WKH DELOLW\ RI WKH JUDLQ
industry to meet demand during the
current health crisis, unprecedented
in the age of globalized trade, is a testament to the importance of market
predictability.
He noted that since 2000, trade in
grains has nearly doubled, with soybeans increasing by 325%, corn by
150%, rapeseed by 135% and wheat by
76% during the past 20 years.
With a global population that is expected to increase by 20% to 9.7 billion
during the next 30 years, the average
US farmer, who today feeds 166 people, will be asked to feed 282 people,
*UL൶WKVDLG
"This underscores the need of continuing to get crops from where they're
produced to where they're consumed,"
*UL൶WK VDLG ³*OREDOL]DWLRQDQG WUDGH
have lifted the living standards in deYHORSLQJFRXQWULHVVLJQL¿FDQWO\´
His point is best illustrated by the
so-called "BRIC" countries - Brazil,
Russia, India and China - which in
the early 2000s had economies that
were in a similar stage of development
July 2020 / World Grain / www.World-Grain.com


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World Grain - July 2020

Table of Contents for the Digital Edition of World Grain - July 2020

World Grain - July 2020 - 1
World Grain - July 2020 - 1
World Grain - July 2020 - 2
World Grain - July 2020 - 3
World Grain - July 2020 - 4
World Grain - July 2020 - 5
World Grain - July 2020 - 6
World Grain - July 2020 - 7
World Grain - July 2020 - 8
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