Trade policy choices play key role in resilience of global food markets, FAO flagship report finds

(UrduPoint / Pakistan Point News / WAM - 10th Jul, 2026) ROME, 9th July, 2026 (WAM) – Shocks to the world’s increasingly interconnected food and agricultural markets are growing in frequency and intensity, and evidence suggests there are effective policy measures that can mitigate and shorten their impact, according to a new flagship report released today by the Food and Agriculture Organisation of the United Nations (FAO).

With the value of food and agricultural trade up fivefold since 2000 to about $2 trillion, and with more and more countries integrated into trade networks, bolstering their resilience in the face of disruptive shocks is a global concern. Crafting supportive policy frameworks, which require international cooperation, has demonstrably positive effects in curbing the price and hunger consequences of shocks, according to research presented in the new edition of The State of Agricultural Commodity Markets (SOCO) 2026.

SOCO 2026 examines how global food and agricultural markets can absorb disruptions and restore market equilibrium in the wake of shocks ranging from disasters or extreme weather episodes, socioeconomic crises and conflicts, to biological and technological events.

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Trade, by enabling food to arrive quickly where it may suddenly be needed, is critical, and the report analyzes how trade network characteristics, intensity and policy environment can bolster its ability to address hunger and restore market stability.

“All countries can benefit from stronger international cooperation, well-functioning and integrated trade networks, and greater trust in the multilateral trading system,” FAO Director-General QU Dongyu wrote in his foreword to the report. “Conversely, all countries stand to lose from fragmentation, uncertainty and declining cooperation,” he added, highlighting how that is especially the case for the world’s poorest.

As global food markets come under increasing pressure from geopolitical tensions, conflicts and weather extremes, international cooperation and policy coordination can contribute to a swift adjustment in trade and limit the incidence of food price spikes, strengthening resilience, the report notes.