Global agricultural markets have been in a constant state of uproar over the past five years. Trade wars between major trading nations such as China, the United States, and Australia, supply chain disruptions due to the COVID-19 pandemic, Russia’s war in Ukraine, crisis in the Middle East, and export restrictions in many countries have diverted supplies, altered trading patterns, and increased price volatility, which often makes markets less efficient and more costly.
Despite these disruptions, international trade in grains and oilseed products—key staple commodities essential to global food security—showed significant resilience. Importers found alternative suppliers, buyers adjusted by changing the timing of purchases, and inventory management practices went from “just-in-time” stocks to “just-in-case” levels, even though storage of food commodities can be costly. Perhaps remarkably, price spikes and periods of high price volatility for these products have been relatively short-lived.
A January 13, 2025 IFPRI policy seminar, organized with the Agricultural Market Information System (AMIS), examined the impacts of recent trade disruptions in these agrifood commodities and explored how markets can build resilience to possible future disruptions. This post highlights some of the main takeaways from the event.