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Autonomous machines are a potential game changer in crop farming, boosting productivity, precision, and ease of operations, but bringing them successfully to the market implies a long road. Although some robots have the same functionality as tractors, we do not expect the conventional tractor to be replaced anytime soon. The global agricultural machinery industry is currently focusing on innovating specific stages of the crop production cycle and gradually developing autonomous capabilities across field operations. At present, the global agtech landscape is fragmented, with many startups and various autonomous machines tailored for specific field tasks, but acquisitions and partnerships offer the industry a way forward and a means to provide more integrated solutions that can be distributed effectively among farmers. However, safety regulations are a key precondition for wider commercialization of autonomous machines. While market fragmentation and an underdeveloped distribution network also pose limitations, the primary reason for the delayed uptake is regulatory uncertainty. Industry standards and legal frameworks are currently under development and expected to be in place in the next few years. Though regulations will vary across regions, the core issues to be addressed are applicable across the globe. To explore these issues, we examine the regulatory environment in the EU and what it means for the industry.
China issued new regulations to control the nation’s hog production capacity after an aggressive expansion of farms over the past two years led to an oversupply, a move that could reduce the size of the world’s largest pig herd. The retention of breeding sows will be dynamically adjusted according to changes in pork consumption and pig production efficiency, the ag ministry said. Regulatory measures will be triggered when the number of breeding sows rise or fall excessively to ensure a stable supply of pigs. China last week lowered the national target for normal retention of breeding sows to 39 million from 41 million. Trivium China said, “If the number of breeding sows falls by two million in line with the lower national target, that would reduce China's pig herd size by at least 22 million, which will reshape the demand of feed grains like soybeans, corn and wheat.” Background: China’s pig herds, which make up about half of the global total, were devastated by an outbreak of African swine fever from 2018 to 2021, leading to widespread culling, higher prices and a push for more production that in subsequent years resulted in volumes recovering to the point of overcapacity. China’s pig population was 434 million in 2023, up significantly from a low of 310 million in 2019.
World Farming Agriculture and Commodity news - Short update - 2nd week of July 2024
The benchmark for world food commodity prices was unchanged in June, as increases in international quotations for vegetable oils, sugar and dairy products offset a decrease in those for cereals, the Food and Agriculture Organization of the United Nations (FAO) reported Friday.
The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally-traded food commodities, averaged 120.6 points in June, the same as its revised figure for May. The index is now 2.1 percent lower than its year-earlier value and 24.8 percent below its March 2022 peak.
The FAO Cereal Price Index declined by 3.0 percent in June from May, with quotations for coarse grains, wheat and rice all down, driven in part by improved production prospects in major exporting countries.
The FAO Vegetable Oil Price Index, by contrast, rose 3.1 percent from May, buoyed by reviving global import demand for palm oil and firm demand from the biofuel sector in the Americas for soy and sunflower oils.
The FAO Sugar Price Index increased by 1.9 percent from May after three consecutive monthly declines, due in large part to concerns over the likely impact of adverse weather and monsoons on production in Brazil and India.
The FAO Dairy Price Index rose by 1.2 percent, with international quotations for butter reaching a 24-month high on the back of increased global demand for near-term deliveries amidst strong retail sales, seasonally falling milk deliveries in Western Europe and low inventories in Oceania.
The FAO Meat Price Index was virtually unchanged in June, as slight increases in the world prices of ovine, pig and bovine meats nearly offset a supply-led decline in international poultry meat prices.
Global cereal output seen hitting all time high in 2024
FAO also updated its forecast for global cereal production in 2024, now pegging it at 2 854 million tonnes, a new all-time high.
The Cereal Supply and Demand Brief, also issued by FAO today, attributed its raised projections to a better harvest outlook for maize in Argentina and Brazil as well as Türkiye and Ukraine, which will offset downgrades to the outlook for Indonesia, Pakistan and several Southern African countries. The wheat production forecast has also been raised based on better prospects in Asia, notably Pakistan, which should outpace an expected decline in the Russian Federation due to inclement weather in major wheat producing areas earlier in the season. Global rice production is projected to reach a record 535.1 million tonnes.
World cereal total utilization in 2024/25 is forecast to rise to 2 856 million tonnes, up 0.5 percent from the previous year, led by rice and coarse grains.
World cereal stocks are forecast to expand by 1.3 percent in 2025, leaving the global cereal stocks-to-use ration in 2024/25 nearly unchanged at 30.8 percent.
FAO’s forecast for international trade in total cereals remains unchanged at 481 million tonnes, representing a 3.0 percent decline from 2023/24.
Conflicts, droughts, drive food insecurity
Conflicts are generating severe levels of acute food insecurity especially in Yemen, where nearly 4.6 million people in government-controlled areas were estimated to be facing high levels of acute food insecurity, and the Gaza Strip and Sudan, where populations are also facing the risk of famine, according to the latest Crop Prospects and Food Situation report, also published today.
The triannual publication by FAO’s Global Information and Early Warning System (GIEWS) offers a granular review of hunger trends in the 45 countries it identified in need of external assistance for food.
It also offers a regional breakdown of cereal production and prospects. Cereal production in Low-Income Food Deficit Countries is expected to increase in 2024, but growth is uneven around the 44-nation group.
Of particular concern is the projected almost 20 percent annual drop in total cereal production in Southern Africa in 2024, due to widespread hot and dry conditions. Import requirements for the subregion are projected to be more than double the past five-year average, assuming normal consumption levels are maintained. Zambia, usually a net exporter of maize, is forecast to import nearly one million tonnes in 2024. Although global maize suppliers are expected to be ample, most is yellow maize, while global supply of the white maize that is a staple food in Southern Africa is tight, the report noted.
Commodities July 14
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