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.
Focus on issues

Yet another agricultural crisis

Collectif Stratégies Alimentaires (CSA)

Unregulated liberalization increases price volatility due to the essentially endogenous nature of the risks. The current agricultural crisis within the European Union is one of the most convincing examples. The competitiveness and economic sustainability of farms, including those related to livestock, are now undermined by the Russian embargo, overproduction, falling oil prices and a drop in Chinese demand. However, these exogenous factors would not have such an impact if agricultural policies, particularly European, were adapted to the issues and realities of agriculture.

We recommend reading the below article by the Food Strategies Group
1 (Collectif Statégies Alimentaires - CSA), based in Belgium. Discussing the current crisis, the group blames the dismantling process of the CAP which currently forces farmers to suffer the brunt of market risks. Consequently, the group calls for the rehabilitation of regulation policies for agricultural markets, the only way to handle the extreme price movements that are most threatening to farmers.

It is in this perspective that Momagri in early 2015, published its White Paper “A new strategic course for the CAP”, which, fully aware of the reality of agricultural markets, notably recommends the redeployment of direct payments around a revenue countercyclical stabilizer device for farmers and at a cost compatible with the budget envelope of the multi-year outlook.

La rédaction de momagri

Yet again, farmers are suffering from very low prices that reduce their income or even un-dermine the viability of their operations. They are asking politicians to take action to regu-late agricultural markets. They are no longer satisfied with comments such as “supply ex-ceeds demand” or “a drop in Chinese consumption due to the slowdown ...” because the imperfect functioning of agricultural markets, and especially their extreme sensitivity to any imbalance, has been widely known for a very long time.

Throughout history most agricultural policies have taken the difficulties intrinsic to the agricultural sector into consideration and adopted the necessary tools to cope. The European agricultural policy implemented since the founding of the European Union was a very successful model which was dismantled under blows from the GATT (now the World Trade Organization). A guide price was defined as a remunerative price for farmers, and a set of instruments (intervention, restitution, variable levy, production quota) contained market prices at this target price. The only thing that remains of this control device is a meagre intervention price and storage aids, which is regrettable and totally ineffective. Since its inception 30 years ago, the CSA has been pleading not only to maintain the regulatory tools for agricultural markets, but also to expand into international markets to share the benefits with all farmers.

It is urgent to rehabilitate agricultural market regulation policies for the fair remuneration of farmers’ work and to give them the necessary opportunities for the transmission of their operations to the next generation.

We welcome the efforts made by Belgian agricultural organizations in negotiations with the other actors in the food chain, and especially the joint work between the various profession-al agricultural organizations. These are important advances that will inspire their peers in southern countries, because remember, unstable markets and low agricultural prices are conditions shared by all the world's farmers.

1 The entire article is available from

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Paris, 18 December 2018