A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

Economic intelligence,
a strategic tool for agricultural markets

March 11, 2013

The increasing financialization of agricultural markets continues to fill the pages of European and international dailies, and to put pressure on policy makers. While speculation on food products has made headlines for the past few months, there is little mention of a fact: Using economic intelligence to fight agricultural price speculation.

Information has now become a fearsome economic weapon in an environment where globalization led to opening borders, strengthened price volatility, and increased opacity in the interpretative guides of financialized markets.

In that context, economic intelligence has recently intervened in agricultural markets. For private as well public interests, it has become an increasingly important tool to master information for better market transactions and to anticipate the actions to be carried out. As stated by Alain Juillet, President of the Club des Directeurs de Sécurité des Entreprises (CDSE), “In the current competitive environment, if one does not have good data, one is swept away by those who have it.”

Companies such as France’s Offre et Demande (ODA) are processing over 200,000 new items of information daily with advanced computing systems. The task at hand is to find the right balance between information generated by both authorities and markets and by crop numbers verified locally… Because number manipulations are frequently occurring for political, economic and trade reasons. To cite but one example, cases of pressure by local governors on farmers to beef up production numbers were recently recorded in Kazakhstan …

Other innovative solutions also help to master information data concerning weather forecasting and yields, as provided by the Global Risk Agricultural Intelligence (GRAIN) satellite service launched by the leading European space industry Astrium that can forecast crops in a given country.

Gaining operational ground represents a valuable competitive asset for all players in international agricultural markets. The major problem is not finding information but finding accurate and useful information that will assist in the implementation of influential, counter-influential, anticipation and positioning agricultural strategies. If it is correctly used, information will also limit the scope of error in agricultural markets, which will thus become increasingly more dependable.

Yet, there is no such thing as zero risk. If mastering information is to become the lifeblood of global trade, we must ensure that beyond the interests of governments, investors and multinational corporations, there is a total trust between the various players in agricultural markets and a practice of information sharing. Without them, mastering information flows could turn out to be a powerful weapon of destabilization, whose consequences could be devastating.

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Paris, 25 June 2019