G20 Agriculture Ministers: Coronavirus Measures Should Not Disrupt Food Supply

A woman wearing a protective mask picks vegetables at a market during the nationwide quarantine in response to the spread of coronavirus in Caracas, Venezuela March 31, 2020. (Reuters)
A woman wearing a protective mask picks vegetables at a market during the nationwide quarantine in response to the spread of coronavirus in Caracas, Venezuela March 31, 2020. (Reuters)
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G20 Agriculture Ministers: Coronavirus Measures Should Not Disrupt Food Supply

A woman wearing a protective mask picks vegetables at a market during the nationwide quarantine in response to the spread of coronavirus in Caracas, Venezuela March 31, 2020. (Reuters)
A woman wearing a protective mask picks vegetables at a market during the nationwide quarantine in response to the spread of coronavirus in Caracas, Venezuela March 31, 2020. (Reuters)

Agriculture and food ministers from the Group of 20 countries agreed at a virtual meeting on Tuesday that emergency measures to stop the spread of the new coronavirus must not upend global food supply chains.

Their extraordinary meeting came as coronavirus lockdowns across the world slow global food supply chains, leaving some farmers unable to get their produce to consumers and major producing countries restricting exports.

"We agree that emergency measures in the context of the COVID-19 pandemic must be targeted, proportionate, transparent, and temporary, and that they do not create unnecessary barriers to trade or disruption to global food supply chains, and are consistent with World Trade Organization (WTO) rules," a final statement emailed by the group said.

Saudi Arabia's minister for environment, water and agriculture, Abdulrahman al-Fadhli, said his country would work with other states and organizations to make sure food supply chains remained resilient as the battle against COVID-19 continues, the ministry said.

"The coronavirus crisis is a wake-up call for the whole world - joint action and solidarity are what is needed at this time," UAE minister of state for food security Mariam bint Mohammed Almheiri said at the meeting, adding that global food supply chains were facing "serious disruptions."

The ministers also cautioned against food waste, saying it could "exacerbate food insecurity and nutrition risks and economic loss."

Lockdowns have hit some farmers hard as demand from restaurants and other buyers vanished, and trashing crops has in some cases became more economically viable than paying for labor and transport to sell it.

A senior World Bank official, Mari Pangestu, also warned at Tuesday's meeting against import barriers and export restrictions, urging global cooperation to avert food crises.

The G20 ministers said they would guard against any measures leading to excessive food price volatility in global markets or that threaten food supply.

Staple grain supplies are plentiful globally but some producing countries have indicated they would limit their sales abroad to prioritize domestic supply.

The limitations come as major food importers strive to beef up their own reserves by upping purchases from abroad.

Russia, the world's largest wheat exporter, said last week it would suspend grain exports to July 1 once an export quota it had set of 7 million tons was exhausted, an event now likely to happen in mid-May.

If Russia's quota is depleted by that date it could upend purchases made by Egypt last week to up its stocks.

Egypt, the world's largest buyer of the grain, booked 180,000 tons of Russian wheat in two purchasing tenders in its quest to up its reserves.



Oil Prices Fall as Demand Concerns Overshadow Libyan Export Halt

FILE - The drilling rig of the Kingfisher oil field, operated by China National Offshore Oil Corporation (CNOOC), is seen on the shores of Lake Albert in the Kikuube district of western Uganda Tuesday, Jan. 24, 2023. (AP Photo/Hajarah Nalwadda, File)
FILE - The drilling rig of the Kingfisher oil field, operated by China National Offshore Oil Corporation (CNOOC), is seen on the shores of Lake Albert in the Kikuube district of western Uganda Tuesday, Jan. 24, 2023. (AP Photo/Hajarah Nalwadda, File)
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Oil Prices Fall as Demand Concerns Overshadow Libyan Export Halt

FILE - The drilling rig of the Kingfisher oil field, operated by China National Offshore Oil Corporation (CNOOC), is seen on the shores of Lake Albert in the Kikuube district of western Uganda Tuesday, Jan. 24, 2023. (AP Photo/Hajarah Nalwadda, File)
FILE - The drilling rig of the Kingfisher oil field, operated by China National Offshore Oil Corporation (CNOOC), is seen on the shores of Lake Albert in the Kikuube district of western Uganda Tuesday, Jan. 24, 2023. (AP Photo/Hajarah Nalwadda, File)

Brent oil prices fell on Tuesday as sluggish economic growth in China, the world's biggest crude importer, increased worries about demand that overshadowed the impact of the halt of production and exports from Libya.
Brent crude futures were down 17 cents, or 0.2%, to $77.35 a barrel by 0620 GMT, Reuters reported.
West Texas Intermediate crude futures, which did not settle on Monday because of the US Labor Day holiday, were up 50 cents, or 0.7%, at $74.05 a barrel.
"Oil remains under pressure given lingering Chinese demand concerns. Weaker-than-expected PMI data over the weekend would have done little to ease these worries," said Warren Patterson of ING, adding that demand jitters are offsetting the Libyan supply disruptions.
China's purchasing managers' index (PMI) hit a six-month low in August. On Monday, the country reported new export orders in July fell for first time in eight months, and new home prices grew in August at their weakest pace this year.
In Libya, oil exports at major ports were halted on Monday and production curtailed across the country, six engineers told Reuters, continuing a standoff between rival political factions over control of the central bank and oil revenue.
The country's National Oil Corp (NOC) declared force majeure on its El Feel oil field from Sept. 2. Total production had plunged to little more than 591,000 barrels per day (bpd) as of Aug. 28 from nearly 959,000 bpd on Aug. 26, NOC said. Production was at about 1.28 million bpd on July 20, the company said.
Still, some supply is set to return to the market as eight members of the Organization of the Petroleum Exporting Countries (OPEC) and affiliates, known as OPEC+, are scheduled to boost output by 180,000 bpd in October. The plan is likely to go ahead regardless of demand worries, according to industry sources.
OPEC planners may decide that the expected upcoming cuts in US interest rates and the Libyan outage provides space for the addition of more oil, RBC Capital analyst Helima Croft said in a note.
"In our view, a prolonged Libyan outage could support Brent prices" around $85 a barrel, even with additional supply coming onto the market in the fourth quarter, she said.