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.
A look at the news

In line for the presidency of AMIS, Australia advocates
free markets…

March 11, 2013

In an article published in the March 6 issue of The Wall Street Journal, we read that Australia, which will replace the United States as president of the Agricultural Market Information System (AMIS)1 in October 2013, feels its term will be the opportunity to call for a new approach for the agricultural policies of G20 nations. Through its Agriculture Minister, Joe Ludwig, Australia advocates leaving markets freely fix agricultural price volatility, and opposes the idea put forth by France––as AMIS Chair since its June 2011 creation to October 2012––regarding the implementation of regulation stockpiles.

The Australian Government thus rejects any form of intervention on markets. “There is no evidence to show that these type of regulations or physical restrictions actually improve market operations,” said Minister Ludwig. While Australia disallows government intervention, it nevertheless advocates new tools within the AMIS framework, especially the implementation of risk management tools for farmers.

An exporter of farm commodities, Australia is one of the leaders of the Cairn Group2, an interest group of exporting countries that, although widely supporting their own agricultural activities, advocates liberal positions and significant reductions in agricultural subsidies because of their “supposedly” distorting impact on international trade. Consequently, Australia’s recent statement holds no surprises, but could still become worrisome after next October.

The G20 Agricultural Meeting held the prospect of becoming an incubator for new proposals on global agricultural governance, a factor for transparence and new regulation practices in global agricultural markets. Yet, with AMIS under the presidency of the United States and of Australia, there is a genuine risk of dismantling the measures taken by France and others to ensure not only agricultural productivity but global food security as well.

Today’s global agricultural markets require rules and frameworks, just as a democracy could not do without laws, or otherwise face the worst failings, at a time when agricultural price volatility is bound to persist.

Above all and contrary to the Australian belief, leaving markets to their own devices would be highly detrimental, since they do not self-regulate. Agricultural markets are malfunctioning by nature and marked by strong imbalances. As such, they must be regulated and supervised by a renovated global governance system to efficiently fight food volatility and insecurity.

1 The Agricultural Market Information System (AMIS) was set up in 2011 in the framework of the Action Plan on agricultural price volatility and agriculture that was adopted in June 2011 by the G20 Agriculture Minister Meeting held in Paris.
2 The Cairns Group is composed of 19 farm exporters: Argentina, Australia, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Pakistan, Paraguay, Peru, the Philippines, South Africa, Thailand and Uruguay.
Page Header
Paris, 24 June 2019