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Mercaris Report Explores Organic Commodities Markets in COVID-19 and Beyond

A newly released special report from market data and online organic and non-GMO trading platform Mercaris examines the state of organic commodities markets during COVID-19 and the looming long-term risks to the industry unleashed by the pandemic.

Ryan Koory, director of economics with Mercaris, noted during a recent webinar that no event has caused such rapid and widespread effects to markets, consumer activities, labor, and supply chains before. Leading to the question, what will the new normal look like, and what will it take to get there?

Despite poor yields, 2019 saw a 13 percent increase in organic corn farms, and an 11 percent increase in organic soybean farms, leading to a boost in supplies and a 2 percent decline in organic imports.

This summer may prove to be higher risk for grain elevators, mills, and crushers as trade may contract, and infrastructure movement, such as trucking, may be limited.

However, the greatest risk will come from the livestock industry due to plant closures and labor issues, which could have a significant ripple effect on organic corn and soy - which account for 50 percent and 80 percent of organic feed, respectively.

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