The global agriculture market comprises trading of agriculture and related services involving plants, animal and bird raising for food, fabrics, fibres, bio-fuel, medicinal,and other products consumed to nurture and improve human life.
According to the World Bank, in 2018, the agriculture sector accounted for 4% of global gross domestic product (GDP) and is used as an effective tool to stop poverty,promote prosperity and provide food for a forecasted 9.7 billion people by 2050.
Recent statistics published by the U.S. Department of Agriculture (USDA) indicate that the United States remains the world’s second-largest agricultural exporter,following the European Union. India is the world’s largest manufacturer and consumer of milk and owns the world’s largest dairy cattle. The report further highlighted that global agricultural trade volume had gained momentum of more than 3.5% per annum over the last two decades, mainly owing to the income and productive capacity growth of Brazil, Russia, India, Indonesia, and China.
The world agricultural and food markets have passed through many transformations over the years, making domestic and international markets persistently align with each other. According to the Organisation for EconomicCo-operation and Development (OECD), since 2000, a massive global demand has continued to grow for agro-food products. Due to the rapid growth in many developing regions in Asia and South America. The market is predicted to reach $13133.95 billion in 2025 at a compound annual growth rate (CAGR) of 7%.
Still, there are challenges to overcome. As a result of the current pandemic, many countries have started or continued to force trade barriers that disrupt agricultural trade, restrict consumption and access to numerous agro-food markets. While some of these barriers are relevant and required, most need to be revised to eliminate avoidable or excessive tariffs or restraints.
Well-planned tariff and non-tariff structures can help establish a trust and support system to receive the maximum benefits of the agro-food sector. Government policies also have an essential role in enabling the environment, infrastructure, and research & development to develop the global agricultural trade. Countries at all phases of development have a main and shared responsibility in endorsing that the global agro-food markets are freed from distortions.
