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5 crops likely to be affected by global economic slowdown

The global economy is posed to slow his year before rebounding next year according to the International Monetary Fund IMF. The IMF announced (on Monday 30th Jan 2023) global growth is expected to slow from 3.4% in 2022 to 2.9 % in 2023.

The downward side according to IMF is attributed to Russia’s war in Ukraine and the global fight against inflation. The upward side is attributed to the reopening of china’s economy. China and India are expected to account for 50% of the global growth.

The expected slowdown will defiantly agricultural commodities prices due to demand, supply and consumption. Though China is a great market, its alone is not enough for the wide market production.

The persistent drought, extreme heat waves and flush flooding experienced by various countries globally will affect the general production supply of various agricultural commodities. Delayed rainfall in 2022 led to a decline in yield as well as an increased cost of production. In 2023 the rain might remain unreliable which may delay the maturity of most crops. Fruit and abortion may be high on fruit crops.

Honestly, if all factors remain constant as they are and with global prices low; there is highly likely most farmers will make losses in 2023. The crops likely to be affected are macadamia and avocados. Tea and coffee prices are expected to rise due to low production by farmers with a constant increase in global prices.

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Avocados and macadamia farmers should ensure they produce quality products that will be competitive globally. Tea and coffee farmers should also intensify their activities to ensure they get good quantity and quality produce.

However, a change in micro and macro-economic factors on tea and coffee marketing may have a positive or negative impact on both production and marketing. Read Also: Factors to consider before venturing into farming

The reason why the four crops are likely to be affected by the slowdown is the fact that they purely depend on the export market. Horticultural produce that depends on exports mart might be affected too.

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