Asia: Eastern Asia

The COVID-19 pandemic has revealed both the vulnerability and the resilience of food supply chains. Supply chains from farm to retail have been disrupted, primarily by government-imposed lockdowns and other restrictions affecting labor supply, input provisioning, logistics, wholesale, retailing, and food service. Supply chains have also shown a good deal of resilience and innovative capacity to adapt to the major supply and demand shocks they encountered.

After many years of rapid growth, serious trade tensions have emerged between the United States and China. Since open trade is key to avoiding significant economic and environmental costs and help ensuring food security and nutrition, the ongoing trade conflicts have the potential for disastrous outcomes, as China and the US are key players in global agricultural trade.

China's food security is being challenged by a mix of factors, including rising demand, rapid urbanization, scarce natural resources and agricultural labor, and greater risk of food safety and environmental problems. To address food security concerns, China had resolved to meet the bulk of its grain demand domestically. But this policy is now being revisited, suggesting a considerable increase in the already rising food imports. The No 1 Central Document released on Sunday reiterated the importance of improving the food security system while ensuring food safety.

With breaking news about new cases of highly pathogenic avian influenza (HPAI) coming out of China, questions arise again about how this disease is transmitted and what can be done to prevent future outbreaks. While the Chinese government has heightened disease detection efforts and increased prevention, control, and communications efforts in response to the recently reported cases, a strong global response is also necessary to control the spread of this disease.

The Agricultural Market Information System (AMIS) has released the latest edition of its monthly Market Monitor. This month's report sees stabilized world markets as forecasts for 2012-2013 crop outlooks become more finalized. Despite this stabilization, however, attention should be paid to ongoing weather concerns, particularly drought affecting US winter wheat.

Wheat production in 2012 fell below the record seen in 2011, and ending stocks are expected to decline significantly. Wheat use, on the other hand, is expected to drop based on lower feed use in China and the EU.