Agriculture should continue attracting further investment, particularly in developing countries where investment stocks in agriculture are relatively low. Long term prices for both crop and livestock products are set to rise as the demand for food increases driven by growing populations, higher incomes, and changing diets.
New actors in the sector, such as institutional investors, may be confronted with ethical dilemmas and find it difficult to uphold internationally agreed standards of responsible business conduct (RBC), notably in frontier markets with weak governance and insecure land rights.
To respond to this challenge, the OECD and the Food and Agriculture Organisation of the UN (FAO) have developed guidance to help enterprises observe RBC standards and undertake due diligence along agricultural supply chains. It will be finalised in 2015.
This guidance will:
To lead this work, a multi-stakeholder Advisory Group was established in October 2013. It comprises OECD and non-OECD countries, agri-food companies, institutional investors, civil society and international organisations. Access the Advisory Group's summary records: 1st meeting | 2nd meeting | 3rd meeting
A public consultation on the text of the draft guidance was held during January and February 2015.
LINKS AND DOCUMENTS
OECD Guidelines for Multinational Enterprises
FAO work on responsible investment
Policy Framework for Investment in Agriculture
OECD work on international investment
OECD work on agriculture
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