Brussels, 22/08/2012 (Agence Europe) - France and the United States are keeping a watchful eye on developments in the markets for cereals and soya, and say they are ready to convene the Rapid Response Forum should they see signs of degradation, according to a press release published on 13 August by the French Ministry of Agriculture.
The Rapid Response Forum, set in place by the G20 countries in 2011, aims to provide a coordinated response in the event of severe tension on agricultural markets, in order to prevent unilateral intervention that might only worsen the situation. It is linked to AMIS, the agricultural market information system, established within the Food and Agriculture Organisation (FAO) of the United Nations, in Rome.
Stéphane Le Foll, French Agriculture Minister, is keeping a close eye on current developments in the price of cereals. He has noted the United States Department of Agriculture (USDA) report published on Friday 10 August, which confirms that, since July, the outlook for harvests of maize and soya in the United States is deteriorating. “This situation, which is not new, has already been largely integrated by the markets, which partially explains the rise in prices noted over recent weeks”, Le Foll states.
France, which currently holds AMIS presidency, and its Rapid Response Forum, and the United States, which is to take up the presidency on 2 October this year, “remain attentive to any new factors that could warrant the convening of the Rapid Response Forum”, a press release states.
France and the United States are also working together to highlight the agricultural commitments taken during the G20. The current situation confirms the relevance of such commitments, especially the need not to take measures likely to amplify the imbalance between supply and demand.
The United States has suffered severe drought over recent months. This has affected a number of harvests, especially maize production, which seemed to be on the way to record highs in 2012 but which is now likely to hit its lowest level for six years. (LC/transl.jl)