The 2024 edition of The State of Agricultural Commodity Markets (SOCO) explores the intricate linkages between food trade, diets and nutrition. Trade can affect diets and nutrition through many channels and its effects can be heterogeneous as, by its very nature, trade is intertwined with economic growth, demographic shifts and societal interactions. The report provides comprehensive evidence of how trade affects supply and price, two essential elements of the food environment, which, in turn, can influence dietary patterns and contribute to nutritional outcomes.

Part 1, econometric modelling exercises were undertaken to assess the long-term relationship between gross domestic product (GDP) growth and nutrition transition, and whether dietary patterns converged between countries at different levels of development. A literature review on the role of Foreign Direct Investment (FDI), local food industries and nutrition was commissioned to support the writing of the chapter. 

Part 2, analytical work was commissioned to assess the evolution of international food trade in terms of nutrient flows and examine the potential relationship between trade openness and nutritional outcomes. 

Part 3, technical work was commissioned to calculate food diversity indicators and nutrient gaps, and econometric models were developed to identify the relationships among food diversity, nutrient gaps and the role of trade. Analytical work was also commissioned to quantify implicit nutrient prices and their association with trade. Analysis was undertaken to assess the relationship between trade openness and the cost and affordability of a healthy diet. 

Part 4, technical work was commissioned to apply an import demand gravity model to estimate the impact of regional trade agreements on food trade and assess whether trade agreement provisions affected different types of foods differently. 

Part 5, an external expert produced a critical review of trade policies and nutrition measures with an analysis of the policy space available to pursue nutritional goals. The manuscript was reviewed extensively by both internal and external experts who provided substantive comments and advice on the analysis of the report. The report was reviewed and discussed by the management team of the FAO Economic and Social Development stream in June 2024.

Fulltext: https://openknowledge.fao.org/.../955f0218-9304.../content).