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.
Pierre Pagesse
  Editorial  
 

The urgent need for a global food and agricultural policy.
We cannot build world prosperity on market chaos!



Pierre Pagesse


President of Momagri


The prices of primary agricultural commodities are soaring, raising fears of the return of food riots such as those that affected several countries in 2007. Speculation has returned, amplifying the effects of drought in several regions across the world. The director of the FAO, Jao Graziano da Silva of Brazil, has called for countries to prepare stocks for their food security. This is essential, because nobody can act effectively with empty granaries and dollars have never replaced wheat, corn or soya!

Commissioner Ciolos is right “global agriculture needs a proactive policy.” Momagri has repeatedly stated that only an international agricultural and food policy could ensure both food security and the supply of the world’s non-food sectors.

Momagri has scientifically demonstrated that price volatility is indeed a structural component of unregulated agricultural markets. Beyond their exposure to climatic and epizootic hazards, like the drought of 2012, agricultural markets are indeed affected not only by the irreversibility of decisions to go into production, but also by a certain rigidity in demand. In the absence of buffer stocks this creates risks that increase the likelihood of abrupt price reversals across the world. Remember, the announcement for planting in the United States last May started a trend of falling prices that fuelled fears of a collapse similar to that of 2008.

According to the FAO, meeting the challenges of global food security and those of green chemistry to cope with the scarcity of fossil resources and increasing the share of renewable carbon will require an increase in agricultural production of 70% by 2050. However, on a global scale, the instability of prices paid to producers, often below the cost of production, reduces the efficiency of agricultural activity and threatens its sustainability in the medium to long term. Deregulation has led to the financialization of agricultural markets, creating a vicious cycle: less investment in production, a downward trend in agricultural productivity (Europe is the first to suffer the consequences), slow economic development in the agri-food sector, social instability. It is urgent to break this cycle.

To reverse this trend, momagri have put forward a new approach to agricultural policy. By respecting the principles of market economy, it creates a virtuous circle, favourable to a global food balance, with a World Food Security Council at its head. Yes Mr Ciolos, “a new generation of agricultural policies per major regional group is necessary” and the momagri proposal is declinable by region.

Let’s take Europe as an example of one of these major regions: the CAP no longer plays the stabilizing role that helped to develop the agriculture and food industries of France and the European Union. The Commission’s current reform draft, which only partially includes regulation mechanisms for agricultural markets and combating price volatility, does not meet the challenges of the 21st century. The alternative project proposed by momagri (“Another CAP is possible1”) has been developed to improve the competitiveness and the functioning of European agricultural markets. This project is based on market prices that fluctuate freely around an equilibrium price within a tunnel that evens out extremes, encourages European production on a quantitative and qualitative basis, while limiting related budgets.

Naturally, this policy makes sense only if it is accompanied by a matching increase in investment for research and infrastructure to durably increase agricultural production throughout the world.


1 « Another CAP is possible »
http://www.momagri.org/UK/editorials/Another-CAP-is-possible-momagri-proposes-countercyclical-tools-to-stabilize-farmers-revenues-and-fight-against-the-destructive-effects-of-price-volatility_1124.html

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Paris, 10 December 2018