Global trade of all grains, oilseeds grew more than 50%Staff writer ▼ | May 18, 2016
Global trade of all grains and oilseeds has grown by about 150 million tonnes in the last five years, thereby exceeding the growth of the previous five years by more than 50 percent according to Rabobank.
Crop trade In the last five years
Global imports are dominated, both in absolute and in growth terms, by Asia (43 percent of all imports), followed by the EU (12 percent), as well as North Africa, Sub-Saharan Africa, the Middle East, and South America and Central America, which each account for about 8 percent to 11 percent of imports, with Sub-Saharan Africa showing the strongest growth rates.
South American exports are growing faster than those of North America. Brazil has raised its exports by an impressive 41 million tonnes, or 73 percent, in the last five years.
Soybeans and corn were the two major exported commodities, driven by strong Asian demand and, respectively, showing a doubling, as well as a tripling, in trade. The Black Sea Region also continued its production and export growth. Ukraine, Russia and the eastern EU member states each increased their grain & oilseed (G&O) exports by about 50 percent.
The Americas-to-Asia trade is the key driving factor of G&O trade flows worldwide. Especially in China where in the last five years G&O imports have increased by almost 90 percent. Other destination areas like the Middle East, South-East Asia and Sub-Saharan Africa have also increased their role in the last five years.
Global G&O trade will continue to grow, as the demand regions with the highest growth rates (i.e. Asia, the Middle East and Africa) will rely even more on imported commodities.
Trade into China will be crucial, especially for soybeans as the demand for animal feeding is further growing, while feed grain import might face challenges in the future and the country might even turn into a net exporter as the government in China has to deal with record high domestic corn stocks.
South American exports will gain further importance and even so Brazil’s G&O exports are still 30% lower than those of the US, the gap will close further in the next years. Also, the liberalisation of the Argentine export system in late 2015 and a weak Argentine peso will support the countries G&O exports. ■