Rome – International trade in food and agriculture has grown rapidly in recent decades, significantly improving food diversity, availability, and affordability across the globe. A new report from the Food and Agriculture Organization of the United Nations (FAO), The State of Agricultural Commodity Markets (SOCO) 2024, highlights the transformative role of trade in shaping global diets and addressing nutrition needs.
While trade boosts access to a variety of foods, it also introduces challenges. In some cases, it accelerates shifts toward unhealthy dietary patterns, increasing the consumption of foods high in fats, sugar, and salt. This trend underscores the need for trade policies that align with national nutrition and public health goals.
Balancing Trade and Nutrition Objectives
FAO Director-General Qu Dongyu explains that multilateral trade rules and regional agreements have made global food trade freer, fairer, and more predictable. These frameworks have significantly enhanced the flow of agricultural products worldwide, promoting greater food security. However, the report, titled Trade and Nutrition: Policy Coherence for Healthy Diets, emphasizes that policymakers must ensure trade policies support healthy eating habits rather than undermining them.
As incomes rise—a hallmark of development—demand for ultra-processed foods grows at an even faster rate. This trend highlights the need for thoughtful policies that prioritize nutrition while fostering economic growth.
Trade’s Positive Impact on Food Security
Trade has doubled the variety of foods available in many countries, especially those with limited agricultural diversity, such as Kiribati and Norway. By catalyzing a more diverse food supply, trade supports better nutrition and health outcomes. Countries that rely on imports for essential nutrients benefit significantly, as global trade fills gaps in their domestic food production.
Additionally, trade-driven food diversity ensures a more equitable distribution of critical nutrients like vitamin C, calcium, and zinc. Lower food prices in countries open to trade make nutritious options more affordable for consumers. This advantage spans staples, fresh produce, and processed foods, reinforcing trade’s role as a cornerstone of food security.
Challenges: Rising Obesity and Dietary Shifts
Despite its benefits, food trade can contribute to undesirable health outcomes. The FAO report highlights how obesity has surged alongside the expansion of trade. From 2000 to 2022, global undernourishment declined from 12.7% to 9.2%, but adult obesity rose from 8.7% to 15.8%.
Moreover, trade has shifted dietary patterns. Staple foods remain the largest source of calories in traded products but now represent a smaller share compared to rising categories like fats, oils, seeds, nuts, and animal-based foods. These shifts reflect both positive trends in dietary diversification and concerns over increased consumption of calorie-dense, nutrient-poor foods.
A Call for Coherent Policies
FAO findings highlight the need for policies that balance the advantages of global trade with its potential to harm public health. By aligning trade and nutrition strategies, countries can harness the benefits of trade while mitigating its downsides. Policymakers must focus on creating a global food trade system that prioritizes both affordability and health, ensuring trade continues to support global nutrition goals without fuelling unhealthy trends.
Key Findings
The global food trade has transformed significantly, with notable trends and impacts on dietary patterns worldwide. By 2021, international trade in food delivered nearly 5,000 trillion kilocalories, more than double the amount traded in 2000. This surge increased the average daily food trade per person from 930 kilocalories to 1,640 kilocalories.
As incomes rise, so does demand for imported food. A 10% increase in income leads to an 11% increase in ultra-processed food imports and a 7% increase in imports of unprocessed or minimally processed foods. These shifts highlight how economic growth drives dietary changes.
Dietary Energy and Diversity Trends
Between 1961 and 2021, global dietary energy available per person rose by 35%, climbing from 2,200 to 2,980 calories per day. However, the composition of these calories has shifted. Staple foods, once making up 57.4% of global diets, now account for 48.4%, while the shares of animal-based foods, fats, and oils have grown significantly.
Trade has also boosted the availability of essential nutrients. Per capita trade in vitamin C and calcium nearly doubled between 2000 and 2021. By 2020, countries produced an average of 120 food items, but trade expanded this to 225 food items available per country, underscoring the critical role of international trade in enhancing dietary diversity.
The Rise of Ultra-Processed Foods
According to the FAO report, ultra-processed foods made up 7% of globally traded calories in 2021. In high-income countries, these foods represented 12% of total food imports, reflecting their growing influence. While their caloric contribution is relatively small, their monetary value far exceeds their share, showing the premium consumers place on these products.
Investment in food processing and supermarket proliferation has expanded access to processed foods. This shift, especially pronounced in low- and middle-income countries undergoing rapid urbanization, has outpaced similar changes in high-income nations.
Trade Governance and Its Impacts on Diets
Trade liberalization has clear benefits for food security, but its effects on diet quality remain mixed. FAO’s analysis using the Cost and Affordability of a Healthy Diet indicator reveals that higher import tariffs lead to higher food prices, regardless of food type. However, trade openness generally does not disproportionately affect high-calorie, low-nutrition foods.
Modern regional trade agreements (RTAs) play a pivotal role in shaping food trade. Beyond reducing tariffs, these agreements harmonize standards related to additives, pesticide residues, and labelling. Evidence suggests RTAs with extensive sanitary and phytosanitary provisions often increase imports of ultra-processed foods, which tend to be more sensitive to income changes.
Aligning Trade with Nutrition Goals
The report highlights case studies of efforts to integrate nutrition goals into trade policies. These examples showcase how policies can align with or challenge multilateral trade rules. By prioritizing harmonized regulations and nutrition-focused trade strategies, countries can better leverage trade for healthier diets while mitigating the risks of dietary shifts toward ultra-processed foods.
