World food stocks are generally in good shape.   Ottawa—Agrifood trade has fared better than most other economic sectors during the COVID-19 pandemic as initial moves to safeguard national food supplies shifted to restoring supply chains and helping farmers, says the World Trade Organization. In a special report, the WTO says the resilience of agrifood trade “reflects the essential nature of food and the resulting relative income-inelasticity of demand for it, as well as the fact that most agricultural trade (notably cereals and oilseeds) takes place in bulk marine shipments that have not been subject to major disruptions.” Overall merchandise trade fell sharply in the first half of 2020 compared to agrifood exports, which increased by 2.5 per cent during the first quarter of the year compared to 2019 followed by small increases in April and May, and then a small drop in May. While shipments of products destined for food service outlets and the tourism sector have dropped dramatically, the demand for staple foods and processed fruits and vegetables has remained strong “reflecting initial panic buying and increased home-based consumption,” the report said. Impacts have varied across regions with Asia seeing its agricultural exports decline in March followed by Europe and North America in April. By contrast, South America has benefitted from Asian demand for soybeans, sugar and meat. The first steps by most countries were to contain the virus's spread and ensure national food security. In many cases, agrifood trade was restricted, which changed trade patterns significantly as did food hoarding. “Initial measures focused on guaranteeing the immediate availability of food, have been followed by a second phase of policies seeking to mend broken supply chains and to help agricultural producers to cope with the 'new normal' situation, the report said. “While many governments have gradually relaxed lockdown measures, removed several export restrictions, and introduced domestic support measures to support the agricultural sector, the pandemic continues to spread in different parts of the world and is expected to continue to influence the demand for and supply of agricultural products.” Food prices were on a downward trend at the beginning of the year and the pandemic “exerted further downward pressure on prices, and therefore on producer revenues. Although June saw the first increase in world food prices in 2020, the overall cost of food is “expected to remain at low levels amid the economic downturn.” The result is that while world food stocks for the most widely consumed staples – rice, wheat and maize – “are at or near all-time highs and lower prices in principle make food more affordable, the COVID-19 pandemic's impact on jobs and incomes has increased the number of hungry people.” The World Food Program is estimating 270 million people could be acutely food-insecure by the end of the year, representing an 82 per cent increase from before the pandemic. “Producing and storing enough food is not sufficient if it does not reach those in need,” the report said. “It is therefore critical to keep trade flows open, and to ensure that food supply chains stay operational.” Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.