Transparency and efficiency in international agricultural markets and trade are priorities to achieving food security

While the decline since 2023 in international commodity prices as reflected by the FAO Food Price Index marks an improvement, uncertainty in the international markets persists and needs to be addressed through transparency and fairness , QU Dongyu, Director-General of the Food and Agriculture Organization of the United Nations (FAO), said today.

“Global agricultural markets remain vulnerable to shocks due to ongoing global challenges, including unstable economic conditions leading to sudden changes in trade policy, especially by the major exporting countries,” he cautioned.

The FAO Director-General made the remarks in a video message to the opening of the 76th Session of the Committee on Commodity Problems (CCP), FAO’s longest standing technical committee. He emphasized that hunger remains high. The recently released 2024 edition of The State of Food Security and Nutrition in the World (SOFI) report estimates that between 713 and 753 million people faced chronic hunger in 2023 – that is 1 out of every 11 people globally, and 1 out of 5 in Africa.

The Director-General highlighted the essential role CCP plays in providing guidance towards the improved functioning of markets and trade to ensure global food security. To that end, “transparency is critical for reducing uncertainty and ensuring market stability, and an inclusive, balanced and fair-trading system is necessary to end hunger and malnutrition,” Qu added.

FAO’s efforts to achieve transparency and efficiency in global agricultural markets

FAO supports Members by providing up-to-date, reliable and science-based data and information, monitoring policy developments, conducting impact assessments, promoting dialogue, and proposing policy recommendations, the Director-General noted. The G20 Agricultural Market Information System (AMIS) is a great example of success, where Members support has been crucial.

The Global Information and Early Warning System on Food and Agriculture (GIEWS), established after the food crisis of the early 1970s, is a pillar for market transparency. It is a leading source of information on food production and food security at national, regional and global levels.

In addition, the OECD-FAO Agricultural Outlook represents a key global reference for medium-term prospects for agricultural commodity markets. It provides projections for demand, supply, trade and prices over the next 10 years and serves as a tool for policy and non-policy scenario analyses.

CCP Agenda for the 76th Session

During its 76th Session from 11 to 13 September 2024, in addition to reviewing developments in agricultural and fertilizer markets and market outlooks, the Committee will discuss the relationship between trade and nutrition. In this regard, Qu highlighted the upcoming 2024 edition of The State of Agricultural Commodity Markets (SOCO), which explores this complex relationship and provides evidence on how trade affects dietary patterns and nutritional outcomes.

Qu assured that trade is properly reflected in the FAO Strategic Framework 2022-31, with a Programme Priority Area (PPA) dedicated to transparent markets and trade. It supports in ensuring the Four Betters: better production, better nutrition, a better environment and a better life – leaving no one behind.

The Committee will also receive an update on the World Trade Organization agricultural negotiations and regional trade agreements and discuss a number of other important items, including agricultural supply chains and the work programme in commodity markets and trade under the FAO Strategic Framework 2022-31.

Two side events are organized. The first side event will address main shipping disruptions experienced since 2022 and their impact on global agricultural supply chains, trade costs and the food security of net-food-importing countries. It will explore ongoing initiatives aimed at better understanding export trade logistics and developing solutions to current and potential future disruptions.

A second side event will focus on promoting women’s participation in international agrifood trade. It will discuss current gender-responsive policy practices and development initiatives and explore prospects and pathways to make agricultural trade more inclusive and socially sustainable.

The CCP is open to all FAO Members, plus observers. The CCP normally meets once every two years, or at the behest of its Members and the FAO Director-General.