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

Lower global agricultural prices:
Yet another ordeal for farmers

January 18, 2016

Global agricultural prices have declined for the fourth consecutive year. In 2015, they were on average 19.1 percent below the previous year’s figure. The FAO Food Price Index, which measures the fluctuations of international prices for grain, vegetable oil, meat and sugar, reported an average of 161.4 for 2015, thus returning to its 2006-2007 level.

Reporting a one percent drop in December, dairy products posted the strongest decline with prices down by 28.5 percent during a year that was marked by the end of milk quotas in the European Union. Meat prices were down by 15.1 percent at the end of the year, with a sharp intensification in December (less 2.2 percent) due to “rising pork production in Europe and lower US demand for imported beef,” indicates the FAO.

The prospects for expanding supply on global markets generated by the elimination of export taxes in Argentina, an environment limited by maintaining the Russian embargo, the lower Chinese demand and the end of the milk quotas in Europe are among the factors outlined by the FAO to explain the oversupply situation against the wavering demand.

Yet, justifying price fluctuations by the sole supply/demand model is now dangerous. While exogenous factors remain determining factors, they will not be enough to explain the price hyper-volatility without accounting for market psychology and speculative practices. Today, no one can any longer properly state that a sharp and unanticipated reversal might not occur in agricultural financial markets.

It is clear that this new decline is a yet another hard blow for farmers, who are already feeling the full force of the unregulated liberalization of international trade, without any “safeguard” to protect them.

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Paris, 20 June 2019