World food prices, which rose by 1.3% in July, returned to the previous trend in August, falling by 2.1% in monthly terms, according to a review by FAO (the Food and Agriculture Organization of the United Nations).
The index of world food prices in August amounted to 121.4 points, which is 2.1% lower than in July and 24% lower than the maximum level of March 2022. “Thus, the increase in the index observed in the previous month was leveled. The recorded decline is due to a drop in prices for dairy products, vegetable oils, meat and cereals amid a moderate increase in the sugar price index,” the document says.
The grain price index in August decreased by 0.7% compared to July and by 14.1% in annual terms. World wheat prices fell by 3.8%, largely due to increased supply from active seasonal crop supplies from several leading exporting countries in the Northern Hemisphere. Corn prices declined for the seventh consecutive month and reached their lowest level since September 2020.
Rice prices, on the other hand, increased by 9.8% compared to July and became the highest in the last 15 years. This is due to trade disruptions recorded after India imposed a ban on the export of Indian white rice in July.
The vegetable oil price index in August decreased by 3.1% compared to July after a short-term increase in July. This reflected a drop in global prices for palm, sunflower, soybean, and rapeseed oil. For example, global prices for sunflower oil fell by almost 8% due to weaker import demand amid high supply from major exporters.
The price index for dairy products fell by 4% last month. This is the eighth consecutive month of decline. Compared to August last year, it was 22.4%. In August, whole milk powder fell the most, due to significant supply, especially from Oceania, during the seasonal increase in production and under the influence of a decrease in imports by China.
Global skimmed milk powder prices reached their lowest level since mid-2020 due to sluggish import demand and weak market activity in Europe. Global prices for butter and cheese also fell due to similar factors.
The meat price index in August decreased by 3% compared to July and by 5.4% in annual terms. Lamb prices showed the largest decline, largely driven by a sharp rise in export supply, primarily from Australia, and weaker demand from China. The fall in pork prices was primarily due to low demand from major importing countries and strong export supply in Europe amid declining domestic sales. Poultry prices declined due to strong supply, especially from Brazil. Beef prices fell due to the high number of slaughter animals in a number of major producing countries and weak import demand.
In August, the sugar price index increased by 1.3% compared to July and by 34.1% in annual terms. This was mainly due to growing concerns about the El Niño weather phenomenon, which could lead to a decrease in expected global production.
The FAO Food Price Index is a weighted average indicator that tracks the dynamics of international prices for five major food commodity groups.
‘Vasudhaiva Kutumbakam’ – these two words capture a deep philosophy. It means ‘the world is one family’. This is an all-embracing outlook that encourages us to progress as one universal family, transcending borders, languages, and ideologies. During India’s G20 Presidency, this has translated into a call for human-centric progress. As One Earth, we are coming together to nurture our planet. As One Family, we support each other in the pursuit of growth. And we move together towards a shared future – One Future – which is an undeniable truth in these interconnected times.
The post-pandemic world order is very different from the world before it. There are three important changes, among others.
First, there is a growing realisation that a shift away from a GDP-centric view of the world to a human-centric view is needed.
Second, the world is recognizing the importance of resilience and reliability in global supply chains.
Third, there is a collective call for boosting multilateralism through the reform of global institutions.
Our G20 Presidency has played the role of a catalyst in these shifts.
In December 2022, when we took over the Presidency from Indonesia, I had written that a mindset shift must be catalysed by the G20. This was especially needed in the context of mainstreaming the marginalized aspirations of developing countries, the Global South and Africa.
The Voice of Global South Summit in January 2023, which witnessed participation from 125 countries, was one of the foremost initiatives under our Presidency. It was an important exercise to gather inputs and ideas from the Global South. Further, our Presidency has not only seen the largest-ever participation from African countries but has also pushed for the inclusion of the African Union as a permanent member of the G20.
An interconnected world means our challenges across domains are interlinked. This is the midway year of the 2030 Agenda and many are noting with great concern that the progress on SDGs is off-track. The G20 2023 Action Plan on Accelerating Progress on SDGs will spearhead the future direction of the G20 towards implementing SDGs.
In India, living in harmony with nature has been a norm since ancient times and we have been contributing our share towards climate action even in modern times.
Many countries of the Global South are at various stages of development and climate action must be a complementary pursuit. Ambitions for climate action must be matched with actions on climate finance and transfer of technology.
We believe there is a need to move away from a purely restrictive attitude of what should not be done, to a more constructive attitude focusing on what can be done to fight climate change.
The Chennai High-Level Principles for a Sustainable and Resilient Blue Economy focus on keeping our oceans healthy.
A global ecosystem for clean and green hydrogen will emerge from our presidency, along with a Green Hydrogen Innovation Centre.
In 2015, we launched the International Solar Alliance. Now, through the Global Biofuels Alliance, we will support the world to enable energy transitions in tune with the benefits of a circular economy.
Democratising climate action is the best way to impart momentum to the movement. Just as individuals make daily decisions based on their long-term health, they can make lifestyle decisions based on the impact on the planet’s long-term health. Just like Yoga became a global mass movement for wellness, we have also nudged the world with Lifestyles for Sustainable Environment (LiFE).
Due to the impact of climate change, ensuring food and nutritional security will be crucial. Millets, or Shree Anna, can help with this while also boosting climate-smart agriculture. In the International Year of Millets, we have taken millets to global palates. The Deccan High Level Principles on Food Security and Nutrition is also helpful in this direction.
Technology is transformative but it also needs to be made inclusive. In the past, the benefits of technological advancements have not benefited all sections of society equally. India, over the last few years, has shown how technology can be leveraged to narrow inequalities, rather than widen them.
For instance, the billions across the world that remain unbanked, or lack digital identities, can be financially included through digital public infrastructure (DPI). The solutions we have built using our DPI have now been recognised globally. Now, through the G20, we will help developing countries adapt, build, and scale DPI to unlock the power of inclusive growth.
That India is the fastest-growing large economy is no accident. Our simple, scalable and sustainable solutions have empowered the vulnerable and the marginalised to lead our development story. From space to sports, economy to entrepreneurship, Indian women have taken the lead in various sectors. They have shifted the narrative from the development of women to women-led development. Our G20 Presidency is working on bridging the gender digital divide, reducing labour force participation gaps and enabling a larger role for women in leadership and decision-making.
For India, the G20 Presidency is not merely a high-level diplomatic endeavour. As the Mother of Democracy and a model of diversity, we opened the doors of this experience to the world.
Today, accomplishing things at scale is a quality that is associated with India. The G20 Presidency is no exception. It has become a people-driven movement. Over 200 meetings will have been organised in 60 Indian cities across the length and breadth of our nation, hosting nearly 100,000 delegates from 125 countries by the end of our term. No Presidency has ever encompassed such a vast and diverse geographical expanse.
It is one thing to hear about India’s demography, democracy, diversity and development from someone else. It is totally different to experience them first-hand. I am sure our G20 delegates would vouch for this.
Our G20 Presidency strives to bridge divides, dismantle barriers, and sow seeds of collaboration that nourish a world where unity prevails over discord, where shared destiny eclipses isolation. As the G20 President, we had pledged to make the global table larger, ensuring that every voice is heard and every country contributes. I am positive that we have matched our pledge with actions and outcomes.
Narendra Modi
Prime Minister of India
The United States has approved a new $600 million package of arms and ammunition under the Ukraine Security Assistance Initiative (USAI), the US Department of Defense website reports.
“This package includes equipment to strengthen Ukraine’s air defense, artillery ammunition, and other capabilities,” the release says.
The new $600 million defense assistance package includes
– equipment to support and integrate Ukraine’s air defense systems;
– additional ammunition for the Highly Mobile Artillery Rocket Systems (HIMARS);
– 105-mm artillery rounds;
– electronic warfare and electronic countermeasures;
– destructive ammunition for clearing obstacles;
– equipment for demining;
– support and equipment for training, maintenance and sustainment.
“The United States will continue to work with its allies and partners to provide Ukraine with the capabilities to meet its immediate combat needs and long-term security assistance requirements,” the Pentagon emphasized.
Number of refugees from Ukraine in selected countries as of 01.08.2023
Source: Open4Business.com.ua and experts.news
Agrarians in all regions of Ukraine have harvested over 33.7 million tons of new crops, including 29.309 million tons of grains and 4.353 million tons of oilseeds, the press service of the Ministry of Agrarian Policy and Food reports.
According to the report, grain and leguminous crops were harvested on an area of 6697 thousand hectares with a yield of 43.9 c/ha.
To date, Ukraine has harvested barley on 1504 thousand hectares, from which 5.822 million tons (101% of the plan) were harvested; wheat from 4689 thousand hectares was harvested 22.149 million tons (101%); peas from 154.4 thousand hectares yielded 386.5 thousand tons (103%); millet from 33 thousand hectares – 79.4 thousand tons (40%); buckwheat from 45 thousand hectares – 63.3 thousand tons (31%).
In addition, other grains and pulses were harvested in the amount of 807.2 thou tons from 271 thou hectares.
Farmers are finishing harvesting rapeseed. It has been harvested from an area of 1395 thou hectares (98% of the planned area), with a total of 3999.5 thou tons harvested.
Ukraine has started harvesting oilseeds, including 107.4 thou tons of sunflower (49.4 thou tons a week earlier, which is 2% of the plan) from an area of 107.4 thou hectares, and 154.1 thou tons of soybeans (30.6 thou tons) from 60 thou hectares (3%).
The Ministry of Agrarian Policy is monitoring the relevant information in connection with the revision of the harvest forecast for all crops. Thus, the yield of wheat and peas remained at the level of the previous week – 47.2 c/ha and 25 c/ha, respectively, barley yield was 38.7 c/ha against 38.8 c/ha a week earlier, millet yield was 23.8 c/ha (20.4 c/ha), buckwheat yield was 14.2 c/ha (14 c/ha). At the same time, the yield of rapeseed was 28.7 c/ha, sunflower – 18.6 c/ha, soybeans – 25.7 c/ha).
Sugar beet was harvested from an area of 2.6 thou hectares (1%). With a yield of 449.6 c/ha, the company produced 116 thsd tonnes of sugar beet.
Corn harvesting started in Dnipropetrovs’k region. From 0.7 thou hectares, 2 thou tons were harvested at a yield of 30 cwt/ha.
Agrarians in 18 regions have finished harvesting rapeseed.
As reported, this season winter wheat plantings amounted to 4166 thou hectares (-834 thou hectares compared to the previous season), winter barley – 536 thou hectares (-255 thou hectares), and rapeseed – 1374 thou hectares (+110 thou hectares).
According to the adjusted forecast of the Ministry of Agrarian Policy, in 2023, farmers will be able to harvest the following volumes of grain: wheat – 20.9 mln tonnes, barley – 5.8 mln tonnes and corn – 28.1 mln tonnes. Gross production of oilseeds will reach 20.3 million tons, including 12 million tons of sunflower, 4 million tons of rapeseed, and 4.2 million tons of soybeans. The sugar beet harvest is forecast at 13.7 million tons.
MHP, Ukraine’s largest chicken producer, has signed a shareholder agreement to establish a joint venture with Desert Hills Veterinary Services Company Limited (DHV), a subsidiary of Tanmiah Food Company, a leading supplier of poultry and other meat products in the Middle East listed on the Saudi stock market.
“This partnership will allow DHV and MHP to join forces to invest over SAR 200 million (about $53 million at current exchange rates) in farms with a capacity of over 1 million parent flocks, which are expected to produce around 175 million hatching eggs per year, in a state-of-the-art hatchery and poultry feed mill,” MHP said in a statement to the London Stock Exchange on Friday.
Building on the foundation laid by the Memorandum of Understanding signed earlier this year, DHV will hold a 55% stake and MHP will hold a 45% stake in the joint venture.
According to the agroholding, this year MHP and DHV signed a memorandum of understanding to cement their partnership to join forces to develop farms with a capacity of more than 1 million birds, which will produce about 175 million hatching eggs annually. A modern poultry hatchery and feed mill will also be built in Saudi Arabia.
“The deepening of our alliance with Tanmia is a strategic turning point in MHP’s global reach. This partnership symbolizes our shared vision of integrating international expertise with local knowledge and ensuring that Saudi Arabia achieves its food security goals. Our collective strengths will catalyze transformational achievements in the poultry sector, driving innovation and setting new standards of excellence,” said John Rich, MHP Executive Chairman.
“Our collaboration with MHP means more than just a partnership; it reflects our commitment to strengthening Saudi Arabia’s food security system. By leveraging our local knowledge combined with global best practices, our portfolio of first-class products, services and solutions demonstrates our commitment (…) to the broader goals of Vision 2030,” said Zulfiqar Hamadani, CEO of Tanmiah Food Company (a subsidiary of DHV).
According to the report, the signing of the shareholders’ agreement is a crucial step in the establishment of the joint venture after obtaining the necessary approvals, including the permission of the General Authority for Competition of Saudi Arabia and other relevant jurisdictions.
The signing ceremony was attended by Sheikh Amr Al-Dabbagh, Chairman of the Board of Tanmiah Food Company (a subsidiary of DHV), as well as members of the Board and executive management of the company, representatives of the Saudi government, and Ambassador of Ukraine to Saudi Arabia Anatoliy Petrenko. MHP’s Board was represented by Executive Chairman John Rich and Managing Director Yevgeny Levterov.
Tanmiah Food Company is a leading supplier of poultry and other meat products in the Middle East, listed on the Saudi stock market. The company was founded in 1962. Its business model combines enterprises in agriculture, primary processing and marketing of products sold in Saudi Arabia, the UAE, Bahrain, Oman, Jordan and Kuwait. Tanmiah Food Company is the main franchisee of Popeyes Louisiana Kitchen.
As of June 30, 2023, Tanmiah operates 114 farms, as well as six hatcheries, two feed mills and four primary processing plants (slaughterhouses). It sells its products through a network of wholesalers, retailers and food outlets, as well as through its e-commerce platform.
MHP is the largest producer of chicken in Ukraine. It also produces grain, sunflower oil, and processed meat products. MHP supplies chilled chicken half-carcasses to the European market, which are processed, in particular, at its facilities in the Netherlands and Slovakia. In February 2019, the holding completed the acquisition of the Slovenian company Perutnina Ptuj.
In 2021, MHP earned $393 million in consolidated net profit against a net loss of $133 million in 2020, while its revenue increased by 25% to $2.37 billion. In the first nine months of 2022, the agricultural group reported a net loss of $269 million, compared to a profit of $377 million in January-September 2021, and its revenue increased by 14% to $1.88 billion.
In the first quarter of 2023, MHP’s revenue increased by 34.7% compared to the first quarter of 2022 to $745.60 million, and net profit amounted to $49.07 million compared to $108.25 million (at the same time, exchange rate gain amounted to $4.18 million compared to exchange rate loss of $95.32 million).
MHP’s founder, majority shareholder and chairman of the board is Ukrainian businessman Yuriy Kosyuk.
