2 Agriculture Market Information System (AMIS) Abdolreza Abbassian, AMIS Secretary Economic and Social Development Food and Agricultural Organization.

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Presentation transcript:

2 Agriculture Market Information System (AMIS) Abdolreza Abbassian, AMIS Secretary Economic and Social Development Food and Agricultural Organization of the United Nations, FAO Agricultural Market Information Network in the Mediterranean Region Kick off meeting, January 2014 CIHEAM, Paris

Presentation Outline  What is AMIS?  Why was it established?  What are its main goals?  How did it come about?  How it works? 3

What is AMIS?  A G20 initiative to increase food market transparency and reduce the likelihood of food price volatility  Focus: production, utilization, stocks and trade  Crops: wheat, maize, rice and soybeans  Participants: G20 Members plus Spain and seven invited countries 4

Global coverage 5

AMIS participating countries are leading global market players for AMIS crops 6

 Lack of reliable and up-to-date information on supply, demand, stocks and export availability  Weaknesses at national level to produce consistent, accurate and timely agricultural market data and forecasts  Inadequate information on stocks, domestic prices, and linkages between international and domestic markets  Inappropriate and/or uncoordinated policy responses to market crisis 7 Why was it established?

Not only food prices rose sharply, 9

US$/MT, fob Floods in Pakistan Rains in Canada and USA Rains and Floods in Australia Political Tensions Oil price surge Declining Dollar Winter wheat – uncertain growing conditions in US & China USDA October 2010 maize output cuts USDA March 2011 planting/stocks forecasts USDA maize planted acreage estimates USDA maize yield projections Announcement by Russia of lifting the ban from July Droughts in Russia Macroeconomic Conditions EURO Crisis CIS Production Recovery Strong $ Russian Export Ban but they also became unusually volatile!

 improve agricultural market information, analyses and forecasts at both national and international levels  report on abnormal international market conditions including structural weaknesses, as appropriate  strengthen global early warning capacity  collect and analyse policy information, promote dialogue and international policy coordination  build data collection capacity in participating countries. 11 What are its main goals?

How did it come about? Key Events leading to the establishment of AMIS ( )  The Food Price Surge and Crisis of 2007/08 International prices peak in June up 80 percent in two years!  World Food Summit (November 2009) Renewed commitment to eradicate hunger  Extraordinary Meeting of FAO Intergovernmental Groups on Grains and Rice (September 2010) – In response to fears over a repeat of the 2007/08 crisis in 2010/11 following the severe drought and export restrictions by the Russian Federation 12  G20 Seoul Summit (November 2010) The Seoul Consensus identified nine key pillars in its Multi-Year Action Plans for Development, among them food security. In this regard, it invited relevant international organizations to develop, for 2011 Summit in France, proposals to better manage and mitigate risks of food price volatility without distorting market behavior. The consortium of several international organizations (FAO, IFAD, IFPRI, IMF, OECD, UNCTAD, WFP, the World Bank, WTO, and the UN HTLF) prepared a report on Price Volatility in Food and Agricultural Markets. The Report included a list of ten recommendations, of which one called for the establishment of an Agricultural Market Information System (AMIS) in order to enhance the quality, timeliness and reliability of food market outlook information.

……/  G20 Agriculture Ministers Meeting (June 2011) The Ministerial meeting adopted the Action Plan on Food Price Volatility and Agriculture. The Action Plan focused on five main pillars: i) improving agricultural production and productivity; ii) increasing market information and transparency; iii) strengthening international policy coordination; iv) reducing the effects of price volatility for the most vulnerable; and v) improving the functioning of agricultural commodity derivatives’ markets.  A Scoping Report for G20: Improving Food Market Transparency and policy Response for Food Security: AMIS (May 2011): This report by FAO, IFAD, IFPRI, OECD, UNCTAD, WFP, the World Bank, WTO, and the UN HLTF proposed to establish AMIS. The scoping report reviewed the existing global food market outlook information mechanisms, identified problems and gaps, and determined the scope, structure and operations of AMIS. 13

Under the French G20 Presidency, the G20 Cannes Summit (November 2011) Endorsed the Action Plan  Launch of AMIS and Global Agricultural Geo-monitoring Initiative to increase market information and transparency (September 2011): The "Agricultural Market Information System" (AMIS) in Rome on September 15-16, 2011, to improve information on markets. It will enhance the quality, reliability, accuracy, timeliness and comparability of food market outlook information. The "Global Agricultural Geo-monitoring Initiative" in Geneva on September 22-23, 2011, to coordinate satellite monitoring observation systems in different regions of the world in order to enhance crop production projections and weather forecasting data. 14 ……/

How does AMIS work? 15

Four main pillars of work 16

More information on AMIS website