Low stocks to use ratios of recent years were one of the contributory factors to the grain price spike in 2007-08, says this paper on international stockholding arrangements with economic provisions for stabilising world agricultural commodity prices.
Recent years have witnessed a sharp increase in many commodity prices. This report examines the question of whether commodity price volatility has materially changed with the rapid run up in world prices in 2006-09, followed by an equally sharp decline in many commodity prices.
Agriculture continues to create jobs in rural areas of South Africa, albeit mainly in low-wage occupations, and future trade liberalisation would increase employment in the agricultural sector, according to this study.
Over the coming decade, higher food prices and volatility in commodity markets are here to stay. This raises concerns for economic stability and food security in some developing countries, with poor consumers most at risk of malnutrition, said OECD Secretary-General.
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Report to the G20, coordinated by the FAO and the OECD and undertaken in a collaborative manner by FAO, IFAD, IMF, OECD, UNCTAD,WFP, the World Bank, the WTO, IFPRI and the UN HLTF.
Trade in processed agricultural products, such as chocolates, steaks or wines, has increased between emerging economies, as have exports from emerging to high-income countries. However, trade in these products is still dominated by high-income countries.
South-South and Latin American regional trade agreements (RTAs) have progressed most in eliminating agricultural trade tariffs. However, the dairy, meat, sugar and cereal sectors are still often protected by exemptions such as tariff rate quotas (TRQs).
Surging food and commodity prices are undermining efforts to tackle global poverty and hunger and threaten economic growth, said OECD Secretary-General Angel Gurría.
In the event of a surge in the world price of wheat or rice, policies such as additional border measures, consumer subsidies or a release of public stocks would have high costs for taxpayers and negative consequences for international markets, finds this study of ten emerging economies.
Private financial sector investment in agriculture has increased, mainly because of current prospects for income generation, capital appreciation, and uncorrelated returns with equity markets and as a hedge against inflation. This paper surveys this investment activity and its impacts.