Leading agricultural ministers of the world’s G20 member countries will, led by France’s Bruno le Maire, be joining forces on 23 June to discuss measures to help lower food price volatility and improve the situation surrounding food and its security.

According to le Maire, agricultural markets across the globe require not only investment, but also transparency and co-ordination on an international level, as opposed to speculation. In his words, “We need investors not speculators,” his argument being that those who make excessive profits from agricultural markets in a few days are not helping achieve the stability needed within agriculture. He elaborated that it is not the higher prices that need to be fought so much as the excessive volatility.

In order to address the obstacles posed by food security and price instability, the G20′s French presidency has pulled together a five-pronged action plan.

Announcing the launch of the intended initiatives at the International Grain Council’s recent conference, le Maire faced opposition from grain traders. Trading director for Frontier, Jon Duffy, commented, “Controlling speculation won’t alter food security.” He was supported by Alan Tracy, president of the US Wheat Associates, who said, “The greatest risk for trade from government is not that they will do too little but that they will do too much.”

In a similar EU level drive, a financial regulation review is also debating market intervention through setting limits on the size of positions taken on commodity-related futures markets.

Posted by Hayley on the 14th June 2011