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.
Point of view

France and Brazil in partnership to regulate agricultural markets

momagri Editorial Board

Only a month after France and Germany adopted a joint position on reforming European Agriculture, it is now Brazil’s turn to unite with France regarding the issue of regulation of international agricultural markets.

During the meeting of the Committee on World Food Security (CFS) held at the FAO headquarters between October 11 and 16, Bruno Le Maire, French Minister of Agriculture, and Guilherme Cassel, Brazilian minister of Agrarian Development, made a joint contribution focusing on three key challenges: Agricultural price volatility, land tenure policy and climate change.

France and Brazil are thus advocating four key measures to fight the excessive volatility of agricultural commodities:

    - Improving the transparency of information regarding global cereal stocks to better coordinate national policies;
    - Encouraging the creation of national or regional food stocks;
    - Supporting the implementation of innovative financial mechanisms to protect farmers from price volatility, particularly through the creation of price guarantee mechanisms
    - Enhancing the regulation of agricultural commodity derivative markets.
So that these four measures can be implemented, France and Brazil are asking the CSF to mandate the High Level Panel of Experts (HLPE) to determine the causes of volatility and formulate proposals on effective tools for managing price-related risks.

The two countries also agreed on the issue of land purchases in developing countries. In the face of distorting practices, Bruno Le Maire and Guilherme Cassel advocate better land management monitoring at the international level.

The French and Brazilian joint position is worthwhile for two reasons.
First, because if shows that France is clearly positioning itself as a key player not only in the up-coming negotiations in the framework of the WTO and the G-20 Summit, but also in the European talks on the CAP––as shown in momagri’s October 25 article on the French/German joint position. 1.
Secondly, the joint position signals the emergence of a new consensus on the founding objectives for the future. In addition, it is worth pointing out that the proposed measures are in line with momagri’s work and recommendations, in particular those aiming to better grasp the causes of price volatility.

But the hard part remains to be done. So that these goals are not relegated in the ranks of wishful thinking, the agricultural powers must agree on the concrete details of international agricultural market regulation that transcend the existing mandates of international organizations––whether that of the WTO on trade, of the FAO on food security or the IMF on international financial stability. We therefore need a renewed and transversal governance system for agricultural issues to reach these objectives. This is what momagri calls for through the various studies and proposals presented since 2005.

1 Please see our October 11, 2010 article “France and Germany adopt a joint position for a strong CAP after 2013” in the “A look at the news” section.
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Paris, 16 June 2019