The G20 Action Plan Agricultural Market Information System (AMIS)
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1 The G20 Action Plan Agricultural Market Information System (AMIS) Carmel Cahill OECD Trade and Agriculture OECD Food Chain Network, September 2011
2 G20 Mandate from the Seoul Summit (Food security pillar development stream) ACTION 2 Mitigate risk in price volatility and enhance protection for the most vulnerable Request that FAO, IFAD, IMF, OECD, UNCTAD, the World Bank and the WTO work with key stakeholders to develop options for G20 consideration on how to better mitigate and manage the risks associated with the price volatility of food and other agricultural commodities without distorting market behaviour, ultimately to protect the most vulnerable (March 2011 for a preliminary report, June 2011 for the final report). OECD Trade & Agriculture 2
3 Process/Milestones Coordination by OECD and FAO Inter Agency report submitted May 2011 Main input for the deliberations of G20 Agriculture Ministers June 2011 Adoption of Action Plan for submission to G20 Summit in November 2011 OECD Trade & Agriculture 3
4 Inter-agency report proposes action on several fronts To reduce volatility at global level To mitigate the negative impacts of volatility To reduce vulnerability and increase resilience To improve international coordination Agricultural Market Information System (AMIS) addresses the first and last dimensions OECD Trade & Agriculture 4
5 What led to AMIS? Agreement that lack of reliable and up-to-date information on supply, demand, stocks and export availability contributed to recent volatility Weakness in in-country capacity to produce consistent, accurate and timely agricultural market data and forecasts Poor stock data identified as a particular problem Poor domestic price data and poor understanding of how international and domestic markets are linked Inappropriate and uncoordinated policy responses resulting from incomplete understanding of events and incomplete information OECD Trade & Agriculture 5
6 AMIS mission statement Collaborative information and policy initiative involving countries, international organisations and the private sector, initially concentrating on main food crops. Building on and complementing existing information and market monitoring systems, not a new construct The purpose is to improve data reliability at national and international level, to improve timeliness and frequency, overcome weaknesses and gaps, and to enhance policy dialogue and coordination in times of crisis Contribute to increased transparency, and thus reducing uncertainty OECD Trade & Agriculture 6
7 Participation/membership AMIS Secretariat housed at FAO, staff contributions from OECD, World Bank, France, and monetary from other IOs G20 member countries will form the Global Food Market Information Group, other key market players will be invited to participate Private sector initially through umbrella organisations, modalities still to be decided Coverage initially of major food crops, to be expanded gradually OECD Trade & Agriculture 7
8 Operational aspects AMIS Secretariat will build on existing capacity at FAO reinforced by other IO s. OECD and the World Bank will participate with staff and expertise Global Food Market Information Group will meet at least once a year. Agriculture and food market experts from both participating governments and the private sector. Rapid Response Forum will meet on a needs basis but at least once a year. Will be made up of senior capital-based officials, with access to policy/decision makers. OECD Trade & Agriculture 8
9 Milestones Secretariat is being set up Inception meeting September 15-16, in Rome, to define terms of reference, rules and procedures and begin discussion of technical and methodological issues Website and logo in development Progress report to G20 Summit in Cannes, November 2011 OECD Trade & Agriculture 9
10 Identified knowledge gaps Information on stocks inadequate In-country capacity to collect and assess information relevant to the market and price outlook Relationship between agricultural commodity and energy prices Relationship between international and domestic prices and the pertinence of global food price indices Better understanding of the effects of financialization Well defined indicators of impending crisis and degree of severity OECD Trade & Agriculture 10
11 Deliverables Transitional Food Outlook in November in advance of the G20 Summit Progress report on implementation to the G20 summit Monthly and bi-annual reports and bulletins (first full fledged global market situation and outlook to be published June 2012) Development of methods/indicators/triggers Capacity building Alerts to the Rapid Response Forum OECD Trade & Agriculture 11
12 OECD Trade and Agriculture Contact OECD Trade & Agriculture 12
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