Near-term bump for organics could mask long-term threats from COVID-19

Mercaris Special Report outlines near-, long-term risks for organic commodities; free webinar today open to press & public


SILVER SPRING, MD, April 15, 2020 (GLOBE NEWSWIRE) --

Escalated grocery store sales have created a short-term opportunity to boost organic markets. Although, with threats to consumer incomes, livestock processing and tumultuous imports, the year ahead is a gallery of serious organic market risks.

Mercaris, the nation’s leading market data service and online trading platform for organic, non-GMO and certified agricultural commodities, will issue today “Special Report: 2020 COVID-19” outlining the most significant risks to the organic commodities market. Ryan Koory, Director of Economics for Mercaris, will host a free webinar at 11 a.m. CT today to review results of this industry-wide research initiative. The report will be available for download after the webinar.

“The global spread of COVID-19 has generated a multitude of risks for organic commodity markets,” Koory said. “With the potential to impact trade, labor, consumer demand and the greater global economy, its ripple effects will likely be widespread and long lasting. Taking stock of these risks is crucial as we look to understand the market in the year to come and navigate this unprecedented event.”

Report Key Takeaways:

  • Near-term swing of consumer demand from restaurants to grocery stores creates opportunity to boost the organic market’s footprint
  • Livestock processing faces the greatest exposure to COVID-19 throughout 2019/20, including plant closures and labor shortages
  • U.S. organic commodity imports could be reshaped by port closure and global currency fluctuations through the 2020/21 marketing year.
  • The economic repercussions of COVID-19 threaten to create long-term challenges to U.S. organic market growth

The largest long-term risk factor to organic commodities appears to be the effect of COVID-19 on the economy in the U.S. and around the world. The pandemic itself and the global response are unprecedented in modern times, making predictions difficult.

“COVID-19 is a social, political and economic event without a modern parallel,” Koory said. “Monitoring risks, long-term sustainability planning and understanding just how much uncertainty remains are all crucial for navigating the year to come.”

Today’s report and webinar (Apr 15 at 11 a.m. CT/noon ET) are free and open to the public and press. To register for the webinar and access the report, visit this page.

About Mercaris

Since 2013, Mercaris has been helping its customers capitalize on growing demand for organic and non-GMO foods by providing market access and services tailored to the needs of the identity-preserved agriculture industry. Mercaris focuses its data and services on identity-preserved commodities, including organic and non-GMO corn, soybean, meal and organic wheat, and other small grains markets across all regions of the United States and Canada, and recently launched an organic dairy initiative. Mercaris also maintains an online Trading Platform, a pioneering tool that enables buyers and sellers to find new markets and more profitably trade organic and non-GMO commodities.

 

Media Contact: Matt Merritt | Pr-mercaris@paulsen.ag | (605) 370-9959


            

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