Source: UN News: Tuesday, June 23, 2026 00:02 AM
A new report from the Food and Agriculture Organization of the United Nations (FAO) warns that climatic conditions, fluctuations in energy and fertilizer markets due to geopolitical tensions and wars, and uncertainties related to trade policies could affect global food markets in the coming days. According to the report, the state of global food commodity markets is currently relatively favorable and grain production in 2026-27 is projected to remain at high levels, although slightly below record levels. Global production of wheat, coarse grains and rice in the coming year is projected to be slightly below record levels, but will still remain at high levels. Also, the supply situation is expected to remain strong due to adequate reserves available. Published twice a year, this report presents the latest estimates related to production, trade and stocks of major food products, which include cereals, oilseeds, sugar, meat, dairy products and fishery products.F.A.O. Maximo Torero, the IMF’s chief economist, said agri-food systems appear robust at the production level, but risks are rising and have the potential to rapidly impact global supply. He said building resilience requires keeping trade flows open, supply chains functioning smoothly, and strengthening local preparedness for climate-related shocks. © Unsplash/Simon Peel Food loss and food waste are also a major climate and environmental threat. A look at the data…According to FAO, global grain production is projected to decline by 2 percent to 2.98 billion tonnes in 2026, although this level will still remain high. At the same time, grain consumption is expected to continue to grow and the amount of grain used for human consumption is projected to increase by 1 percent. The report also said that in low-income countries with food shortages, per capita grain consumption could decline marginally by 0.4 percent. According to the report, global wheat and coarse grain production is projected to decline in the year 2026-27, while soybean production may reach record levels. At the same time, global meat production is expected to increase modestly, although beef production may decline. Additionally, global consumption of vegetable oils is expected to exceed production, which may increase market pressure, while fish and aquaculture production is also expected to increase, mainly due to the expansion of the aquaculture sector.
