Protests in Europe and falling world market prices – what’s next for agriculture? [69th Edition of the PLANT-BASED Newsletter]

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The market for plant raw materials and agricultural products is currently going through a difficult period. Rising production costs, logisticaldisruptions and changing climatic conditions are affecting the availability and prices of key oils and seeds such as rapeseedoil, sunfloweroil, nigellaseeds and cashew nuts. Protests by European farmers, declines in exports from Asia and turmoil in global commodity markets are also visible inthe background. What are the main challenges for producers and what does this mean for consumers? Let’s take a closerlook at the current market situation.

Let’s see what else has happened recently in the plant products market!

Rape and sunflower oils

Rapeseed and sunflower oils, long recognised for their versatility and healthiness, are now facing challenges from rising production costs, logistical difficulties and adverse climatic conditions in key growing regions. These problems are leading to reduced availability and rising prices. Nevertheless, rapeseed oil, rich in omega-3 and omega-6 fatty acids, and sunflower oil, notable for its high vitamin E content, remain valuable products for supporting heart health and protecting body cells. In response to the current difficulties, producers are considering investing in modern technologies and sustainable production practices that can help ensure a stable supply and meet the growing demands of consumers seeking natural and organic solutions.

Cumin seeds

Known for their exceptional health properties, cumin seeds are gaining increasing recognition among consumers who prefer natural and organic products. Cumin is widely used as an addition to bread, salads or sauces, as well as a raw material for the production of oil with strong anti-inflammatory and antioxidant effects. The growing interest in cumin is not only due to its positive effects on the immune system, but also in supporting skin and digestive health. Although the production of nigella is more stable than that of oils, increasing demand and changes in consumer preferences can cause prices to rise. As a result, producers are seeking to develop new, more efficient production methods to respond to market demands.

Cashew nuts

Cashew nuts, rich in nutritional value and excellent as a healthy snack, are also feeling the effects of growing demand and logistical challenges. The growing interest in plant-based substitutes such as cashew cheese, creams and milk is translating into higher prices and reduced availability of the raw material. In addition, the difficult climatic conditions in the tropical countries where cashews are sourced are affecting the stability of supply. In response to these difficulties, production companies are investing in sustainable production methods, optimising water consumption and taking care of the working conditions on the plantations. However, cashew nuts remain an exceptional source of protein, healthy fats and minerals such as magnesium and zinc, which make them a valuable ingredient for both a daily diet and a healthy snack. Investing in ethical and transparent production processes can help further grow this market segment.

What else?

Europe

There have been protests in Brussels by farmers opposed to a free trade agreement with South American countries. According to the farmers, the agreement could harm European producers by leading to the market being flooded with cheaper agricultural products from abroad. The protesters fear that reduced competitiveness in the local market will affect their income and the future of regional farms.

Asia

Malaysia’s palm oil exports declined by 15% in the first two weeks of November, which analysts attribute to lower demand in the global market and increasing competition from other producers. This situation could negatively affect the country’s trade balance, while also posing a challenge to Malaysia’s palm oil sector, one of the key pillars of the national economy.

Global

Wednesday, 13 November 2024, saw declines in corn, soybean and wheat prices on global commodity markets. The downward trend is a result of growing concerns about the global economic situation and increased supply pressures resulting from high stockpiles. Experts indicate that price volatility could continue over the coming weeks.