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

Unpredictability of agricultural prices,
a heightened risk for farmers

February 4, 2013

The Sommet du Végétal 2013 was held in the Normandy city of Evreux on January 23 and 24, in presence of French Minister of Agriculture Stéphane Le Foll. Orama––the union of field crops gathering the AGPM (the French association of corn farmers), AGPB (wheat farmers) and FOP (oilseed and protein crop farmers)––organized the Summit.

Changing without compromising the competitiveness of field crops was the guideline of discussions––particularly those regarding the CAP––during the two-day debates. Among the various speakers, we noted Philippe Pinta, President of Orama, who called for a competitive French agriculture and is involved in the broad agricultural global issues, or Xavier Beulin, President of the FNSEA (the French federation of farmers’ unions), who reminded us “producing more is no longer a shameful disease.”

During the Summit, a round table was organized on the ability of grain producers to meet market needs. According to the various panelists, markets are unstable, sluggish and above all unpredictable. The unpredictability of agricultural prices is perceived as one of the factors that tarnished the competitiveness of agriculture since 2006/07, a trend whose first consequence is the widening performance gaps between farming operations.

Today, it is impossible to forecast the future in increasingly financialized, uncontrolled and volatile agricultural markets. This price unpredictability and the possibility of a sudden turnover from one day to the next, undermines agricultural development and threatens food security. Agricultural markets have become complex anticipation markets where players’ psychology is as important as hyper-volatility. Isn’t it a fact that, by its sole announcement of a possible grain embargo, Russia disturbed international markets, generating the soaring prices recorded after the 2010 summer?

Even if the implementation of safety nets or emergency reserves is useful, the levels considered are flawed due to a clearly inadequate short-term vision of agriculture. In fact, it would only bring cosmetic changes to an economic sector that, now more than ever, requires sustainable measures carried out by global and inclusive global agricultural policies that are based on forecasting models tailored to reality, and not the other way round.
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Paris, 16 June 2019