The absence of a major drop in production within the European Union means there is little risk of a supply shortage here. But the global situation has put pressure on prices, including in Europe, which is likely to have an impact on livestock producers through higher feed costs.
Agricultural Investment News
What we must seek to avoid is excessive volatility, for example as the result of policy decisions such as export bans which send signals to the market that can trigger emotional responses.
The decisions taken by the G20 last year to increase market transparency have helped. The Agricultural Market Information System has given us all a clearer picture of the evolution of grain production and stocks, and shows that there is no overall lack of supply.
It is clear beyond a doubt that the world must produce more food and do so more efficiently. By 2050 world demand for food will have grown by 70 percent.
Naturally the efforts required are different from region to region. The EU has a role to play, above all by maintaining its current production potential. But the food security challenge calls for decisive action everywhere.
We must create the conditions for investment in developing countries, where serious structural problems still often persist. Hunger cannot be solved by food aid alone.
In order to raise production without irreparably destroying natural resources, and in the face of the serious challenge of climate change, world agriculture requires investment, sound public policies and predictability.
Agriculture must once again become a political priority, and not only in well-meaning declarations, or in times of crisis. Public authorities must have the capacity to act effectively in the areas of food security, sustainability and rural development.
FINANCIAL PLAYERS
Of course, in Europe as elsewhere, farmers must respond to market signals, which in turn must alert to real needs and demand.
At the same time, farmers must not let traders dictate their behaviour.
These financial players do not give priority to the long term, the risk of ecosystem depletion or the need to maintain a regional balance in production capacity. Far from it.
Nonetheless, these are issues that are key to food security. It is for public authorities to draw attention to them.
The European Union has expertise it can share. But it also benefits the EU if other regions develop their own agricultural policies so that they are compatible with each other.
Food security can be improved by building infrastructure, especially in transport and storage; by helping farmers organise themselves better; by focusing more strongly on research, innovation and the sharing of agricultural knowledge; and through efficient safety nets so that the increasingly frequent and severe crises do not push more and more farmers to abandon their occupation.
The European Union has embarked on a dialogue with the African Union on all these topics. Each year, the EU allocates 800 million euros ($1.03 billion) to support agriculture and food security in the poorest counties.
Similarly, we aim to reinforce the agricultural dimension of the European Neighbourhood Policy with our southern and eastern neighbours. Rural programmes including specific initiatives for small farms are currently being developed.
However, these political and financial efforts must not be undermined by speculation. In addition to politics, regulation is also necessary. The EU has taken steps to regulate financial markets in Europe. Likewise, a dialogue has been started within the G20, and the first results on market transparency are already visible.
This is just the start, however, and we must not stop here. It is time to have an international organisation to bring all the countries of the world together and bind them to a truly global and consistent strategy for food security. The reform of the FAO (U.N. Food and Agriculture Organization) has now been launched. It must come up with results and demonstrate its effectiveness - as a matter of urgency.
Ambitions vary depending on the region and country. The European Commission will continue to steadfastly defend a much more ambitious and well-coordinated approach to world agricultural development.
When it comes to a subject as strategic as food, the different global actors must be willing to listen to each other, engage in dialogue and negotiate for the benefit of all. ($1 = 0.7748 euros) (Please contact Charlie Dunmore with questions or comments; Editing by Alison Birrane)
Source: www.porknetwork.com
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