G20 Agriculture Deputies Meeting, May 12, 2011 FOOD RESERVES Ivan Polanco Director of Public Policies, ANEC - National Associations of Marketing Companies of Producers of the Fields

G20 Agriculture Deputies Meeting, May 12, 2011  Necessity to reconsider the role of: States at national level (A Strong State, with new forms and not the previous role of the State developed in the eighties). United Nations system at the global level.  We denounce the ideological assumption that inventory management is more expensive for the countries that price hedging mechanisms and use of financial markets to offset the volatility of prices of agricultural products. ->it is crucial to strengthen the State’s ability to control and to regulate the markets towards the objectives: of food security for the country, of the right to a decent life for the farmers and consumers necessity of State intervention to maintain reserves of food

G20 Agriculture Deputies Meeting, May 12, 2011 Public Reserves of Food - national level Should allow to keep records and inventories of basic and strategic products for the basic diet Inventories should cover at least some months or percentage of consumption. It is not up to stocks to provide free food for the poor, but to give real skills to countries or groups of countries to regulate markets, influencing the demand or supply and hence prices in market. Some countries very deficient in food production will remain so, is therefore the need for commitment by exporting countries to ensure food exports at a guaranteed price in case of strong increases in world prices.

G20 Agriculture Deputies Meeting, May 12, 2011 Community and Local Reserves of Food Basic and strategic products should remain in the local and regional markets. This will allow the re-composition of the local and regional markets. The surpluses remaining in the regions will improve the supply throughout all the year, mainly in the months of maximum shortage. Certainly some countries very deficient in food production will remain so -> need for commitment by exporting countries to ensure food exports at a guaranteed price in case of strong increases in world prices.

G20 Agriculture Deputies Meeting, May 12, 2011 Bodies and laws at national & global level -> National Council of Food Security (national level) -> Coordination Body on Stocks under Committee on Food Security. With functions of administrates-coordinated the Stocks and regulated the agricultural prices.  Mexico has had good experiences in food reserves, despite this we are not re to reinstall the old models -> did not allow market regulations and were not able to guarantee right to food.  Due to this we have been impelling the following in the past years: inclusion of the Right to food in the Mexican Constitution Plan for Food and Nutrition Sovereignty and security, (which is in discussion in the Senate in Mexico)

G20 Agriculture Deputies Meeting, May 12, 2011 Thank you for your attention Ivan Polanco Director of Public Policies, ANEC - National Associations of Marketing Companies of Producers of the Fields