Several droughts have been affecting the world these last years. There are multiple consequences on the crop farmers, on the livestock but also and more perilously on the global food security. All the nations are therefore affected and an increase of the cereal’s price is observed. The French government has released an action plan in order to face the current situation. This plan suggests two kinds of actions: firstly short-term actions to overcome the current situation and secondly more structural actions aiming at limiting the price’s volatility and diminish its effects in the future.
On an international scale, France will mobilize G20 and the FAO
- Mobilize the G20’s Rapid Respons Forum in order to ensure better coordination among the policies of the major actors in global agricultural markets.
France will mobilize the coordination’s instruments implemented by the G20 under the French Presidency. Thus, it will indorse the “Rapid Respons Forum”, concertation’s authority between the G20’s members and the majors producing countries and agricultural products’s consumers. The main objective will be to assess the agricultural market’s situation with the purpose of avoiding panicking purchases and uncontrolled speculative movements. Moreover, the engagement of not taking any measures that could highlight the market’s unbalances should be reaffirmed during this concertation.
- Promoting a break in biofuel’s development since they are in competition with food
Ethanol’s mandate must be studied since it can divert the initial outcome of an important amount of agricultural products. Considering the market’s tensions, France will call for a globally coordinated break in the current development of biofuel which compete with food supply.
- Ask for an assessment of all the G20 agricultural’s actions and relaunch the initiatives made for producing more and better storage capacity in order to respond emergency situations
France and FAO will, during the Food World Day taking place in Rome on October 16, make this assessment. It will aim at evaluating the situation on the projects in order to better share the agricultural production’s knowledge. This initiative, led jointly by the Ministry for Agriculture, Food Industry and Forest and the Ministry for Development will have to relaunch the discussions on sustainable agricultural production’s development. This applies to poor countries but also to the necessity of implementing agricultural policies for managing food crises notably with regional emergency food reserves.
On a European scale, France will defend the regulation’s reinforcement of the agricultural and financial markets
- Reinforce the financial market’s supervision
Volatility’s increase has leaded to an important development of the market futures of raw materials. These are useful tools to help producers insuring themselves but wrongful practices on these markets have to be watched out since they could increase the price volatility.
This necessitates reinforcing regulation of raw materials prices in financial markets.
- Promote a common European Union position on the biofuel’s development break when it compete with food supply
- Ask the European Commission to reinforce the regulation of price volatility through reform of Common Agricultural Policy (CAP)
France will ask the European Commission to start a debate within the European Council and the European Parliament on the tools to put in place at the european level in order to confront the important raw materials price’s volatility.