Agricultural ministers from the G20 group of leading nations are due to meet in Paris on June 22-23rd to discuss an initiative that aims to reduce volatility in agricultural commodity markets.
The meeting comes after the United Nations Food and Agriculture Organisation released its twice yearly Food Outlook analysis, saying that rising demand will absorb most of the increased output in food production. It also outlined expectations for prices to remain at the high levels established earlier this year.
The G20 will discuss a new plan, which is being led by the French minister of agriculture Bruno Le Maire, called the Agriculture Market Information System (AMIS) and will bring together information on global supply and stocks from G20 nations, the UN Food and Agricultural Organisation and international agencies.
Information such as this has previously been unavailable as some nations have been very slow to release this data while others such as China have kept its stock levels secret.
Speaking to the Financial Times Le Maire said, "Markets cannot operate blindly, we need reliable information on stocks and production."
While Le Maire added that progress was likely to be slow, he believed that this initiative was a positive step in the right direction.
It is expected that the AMIS project will be in operation by the end of the year and will, to start with, cover wheat, corn, rice and soyabeans on a monthly basis.
The move follows predictions from charity Oxfam that the price of staple foods such as corn, also known as maize, which has already hit record peaks, will more than double in the next 20 years.
Source: http://www.procurementleaders.com
The meeting comes after the United Nations Food and Agriculture Organisation released its twice yearly Food Outlook analysis, saying that rising demand will absorb most of the increased output in food production. It also outlined expectations for prices to remain at the high levels established earlier this year.
The G20 will discuss a new plan, which is being led by the French minister of agriculture Bruno Le Maire, called the Agriculture Market Information System (AMIS) and will bring together information on global supply and stocks from G20 nations, the UN Food and Agricultural Organisation and international agencies.
Information such as this has previously been unavailable as some nations have been very slow to release this data while others such as China have kept its stock levels secret.
Speaking to the Financial Times Le Maire said, "Markets cannot operate blindly, we need reliable information on stocks and production."
While Le Maire added that progress was likely to be slow, he believed that this initiative was a positive step in the right direction.
It is expected that the AMIS project will be in operation by the end of the year and will, to start with, cover wheat, corn, rice and soyabeans on a monthly basis.
The move follows predictions from charity Oxfam that the price of staple foods such as corn, also known as maize, which has already hit record peaks, will more than double in the next 20 years.
Source: http://www.procurementleaders.com
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