Analysis of Agri-Food Trade Structures
To Promote Agri-Food Trade Networks
In the Islamic Countries
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Import growth in the African Group has been most rapid for cotton (26.8% per annum), palm
oil (14.0% per annum), and cocoa (13.5% per annum). For the Arab Group, import growth has
been most rapid in crustaceans (18.1% per annum), bread products (15.1% per annum), and
chocolate products (13.1% per annum). In the Asian Group, the three fastest growing import
categories were live animals (18.8%), coffee (13.9% per annum), and chocolate products
(12.6% per annum).
Taking these results together, there is clear evidence of trade dynamism at a disaggregated level
in all regional groups. From the point of the OIC as a trade network, however, it is also important
to look at the direction of trade. Figure 16 shows a breakdown of the African Group’s exports by
destination region, distinguishing between the three OIC regional groups, and an aggregate non-
OIC group. In 2005, the African Group’s exports in most product categories went
overwhelmingly to non-OIC countries, and to other African countries. It is expected to a see
strong intra-regional dimension to the trade network, but some products, like cocoa and
chocolate, fruits and nuts, and crude rubber are exceptions, with little intra-African trade. To the
extent that there is a pattern, it suggests that staple products are the most traded intra-
regionally, while inputs into food processing industries are typically traded more distantly,
given the relative lack of industrialization regionally. Although the basic pattern is the same in
2016, with exports dominated by intra-regional flows and flows to non-OIC countries, there is a
significant change in terms of the increasing importance of the Asian Group as a destination for
the African Group’s exports in sectors like cocoa and chocolate, palm oil, and cotton. This
dynamic is driven by the fact that these goods are inputs into the production of labor-intensive
manufactured goods, such as processed food products, and textiles and garments. Asian
members have been developing these industries strongly over recent years, with consequence
derived demand for inputs, which is partially supplied by other OIC countries. For coffee, the
Arab Group remains an important destination market
Figure 17 presents a similar analysis for the Arab Group. In 2005, trade within the Arab Group
was more strongly intra-regional than trade in the African Group, and trade with non-OIC
members was relatively more important. Among other OIC regional groups, only the Asian
Group was a significant export destination in 2005. The same general picture of strong intra-
regional trade links persists into 2016, but there is a noticeable rise in exports to non-OIC
members, typically at the expense, in relative terms, of exports to the Asian Group. One likely
driver is regional integration efforts between some Arab Group members and the European
Union (non-OIC). Policy changes, including trade agreements, have a significant impact on trade
flows, and could be a partial explanation of this change. This dynamic is the opposite of what
was seen for the African Group, where exports to the Asian Group increased in relative
importance over the last decade, largely in the absence of formal trade agreements.
Finally, Figure 18 contains an analysis of the trade network for the Asian Group. In 2005, exports
to non-OIC members were dominant in most sectors, although intra-regional exports were also
important in some cases as well. This dynamic in part reflects the extension of regional
integration agreements within Asia, but including a mix of OIC member countries and non-
members. Exports to the Arab Group are significant in relative terms in cocoa and chocolate,
palm oil, vegetables, rice, and live animals. Only in the case of rice are exports to the African
Group significant. 2016 was characterized by a relatively similar distribution of exports across
destination regions as in 2005.