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.
Terre-net
  Focus on issues  
 

The grain growers’ silent revolution



Jean-François Loiseau, chairman of the board of Axereal, platform given to Terre-net


Article published in Terre-net Média



Since 1992, the Common Agricultural Policy (CAP) has continued to modify the market’s common organization, increasingly opening the door to internationalization. Now, a step has been crossed and more than ever the marketing and risk management of volatility on grain is at the centre of attention. According to Jean-Francois Loiseau, chairman of the board of Axereal, first French grain cooperative, there is a silent revolution underway. Here he speaks in an article for Terre-net.

“Successive CAP reforms, reluctance and a lack of conviction by authorities, the saturation of certain European markets with the gradual liberalization of European grain markets, economic actors, mainly agricultural cooperatives, have positioned themselves for export. Today, one tonne out of two is traded internationally, giving access to more opportunities and a contribution of 7 to 8 billion euros in the French trade balance.

These new reforms confirm Europe’s will to integrate the worlds’ increasing and indisputable globalization. Faced with stagnating European markets, these decisions force farmers to expand towards new areas for growth: the Mediterranean, Asia or Africa. But for the grain sector, working on an international level is more complex. With the weakening of the market’s common organization and a significant drop in direct aid, producers have to concentrate on satisfying the end customer. This is a revolution for a sector that, surprising as it may seem, has not had this reasoning up until now.

On the world stage the competition is tough and farmers’ fears are justified. Consumer groups command specific technical characteristics suited to their use. This is the case for example of protein rates for soft wheat, which strongly impacts the quality of bread made by the baker. The Mediterranean Basin, the world's first importer, demands a rate of up to 12.5. If grain growers can meet this challenge, the government must let them identify key success factors and help them deploy technical innovation: nitrogen nutrition to improve protein content, plant biotechnology and molecular marking similar to that already used for genetic diseases in humans.


A RELATIONSHIP OF TRUST WITH THE CUSTOMER

The waning of the CAP makes competitiveness and production quality vital issues for farmers. Regulation must evolve in this direction: accompanying the product to the customer not penalizing production. France must revive its innovation in order to be able to emphasise its production on world markets.

The changes in world trade faced by grain growers go beyond the evolution of agricultural practices. Customer satisfaction also means developing a relationship of trust by guaranteeing not only quantity but also quality; an obvious objective for industry, but extremely complex to achieve in the world of living organisms. As we were reminded in 2014: Fifteen days of rain during harvest in Europe and Canada were enough to bring on the threat of a shortage”.


Terre-net
Page Header
Paris, 15 December 2018