The Impact BRICS May Have on Global Food Safety
Amid growing supply chain disruptions, a changing competitive landscape, and the prospect of more climate change challenges on the horizon, manufacturers in every industry have been leaning on partnerships to maintain stability — including in the agriculture, food, and beverage sectors. At the 2023 China International Fair for Trade in Services (CIFTIS), experts discussed the importance of bolstering agricultural collaboration among BRICS (Brazil, Russia, India, China, South Africa) nations to address global food safety concerns. The existing BRICS infrastructure used to facilitate trade could expand to streamline and bolster supply chains for key agricultural products like wheat, rice, corn, and soybeans, as well as build new food safety systems specific to the needs of participating countries.
If this expansion of BRICS collaboration works effectively, we could see major improvements beyond agriculture and food safety in Brazil, Russia, India, China, and South Africa — it could affect the entire global food safety system. Let’s look at what that might mean for the food and beverage manufacturing industry as a whole.
What is BRICS?
“BRICS” is an acronym for the collaborative trade association consisting of five major economies: Brazil, Russia, India, China, and South Africa. Similar to the G7 partnership, BRICS nations work in partnership to address a range of economic and political challenges impacting their trade in the pursuit of maximizing each other’s potential. The BRICS alliance creates a formal framework to better facilitate trade, create investment opportunities, and harness their rapidly expanding economies to foster more and faster growth.
By working together, BRICS nations also seek to wield greater geopolitical influence, allowing them to have a more substantial voice in shaping global policies and governance. They are united by common interests, such as promoting multipolarity, opposing unilateralism, and advocating for a more equitable international order. Additionally, since each country faces similar development challenges, the alliance helps them exchange experiences and solutions to address issues more effectively.
How could BRICS impact global food safety?
In 2021, BRICS outlined their first Agriculture Action Plan to accelerate and sustain agricultural development among participating nations and improve food security and nutrition. It included efforts to enhance water use efficiency in agriculture, alleviate poverty and hunger globally, exchange policies on food security, and boost food supply capabilities within BRICS countries. It also emphasized sharing information and best practices among BRICS nations to enhance global food safety.
As BRICS focuses more on building a global food safety partnership, it can lead to a number of positive outcomes both for their economies and the rest of the world, like the following:
Greater Market Stability
One of the motivating factors of forming BRICS was a shared desire to overcome challenges posed by trade monopolies, protectionist policies, and price fluctuations inhibiting growth of the participating nations. Stronger collaboration between BRICS nations on agriculture and the food supply chain could help control the price of commodities and maintain growth, particularly if the alliance creates its own currency.
Improved Global Food Safety and Security
In addition to more control over price, the BRICS alliance helps member nations build more resilient agricultural supply chains. Since the framework streamlines trade and facilitates investment opportunities, it’s easy to accelerate agricultural development and enhance food security and nutrition.
The Agriculture Action Plan emphasizes improving water use efficiency in farming, supporting global poverty and hunger alleviation efforts, and enhancing food supply capacities within BRICS nations. Combined, these efforts can help strengthen food systems, increase resilience, and contribute to a more food-secure world.
More Equitable Food Distribution
At CIFTIS, experts presented data showing that uneven distribution of wheat was creating shortages in BRICS nations. According to their findings, production of wheat in all developing countries was approximately 371 million tons in 2021, or roughly 48.6% of the world's total. However, global demand for that wheat far outpaces supply by 127 million tons, forcing developing countries to rely on imports. That supply-demand gap is the fundamental reason developing countries face so many food security challenges, even though they produce more than enough for their regions.
BRICS can negotiate better trade terms for developing nations, and create a more sustainable supply and demand. Increased trade collaboration between participating nations also positions them to work in partnership with similar member organizations like G7 in the pursuit of global food safety standards that better align with the needs of developing nations.
BRICS and the Future of Global Food Safety
The BRICS alliance is evolving rapidly and can have a major impact on global food safety in both the near and long term. How will it impact international trade and global food safety policy? Stay up to date on the latest developments by signing up for AIB International’s newsletter.
