Archive for July, 2011

FARMERS SPEAK UP, G20 June 2011, Paris
July 16, 2011


Causes and consequences of price instability in agricultural commodities
Moderated by Christian Schubert, Economic Correspondent for Frankfurter Allgemeine Zeitung (FAZ)
Production choices made by farmers take into account price developments in agricultural commodities. In recent years, the agricultural sector has witnessed heightened price and market instability and a series of food crisis. What are the reasons for this instability and what are the actual consequences on farmers and agricultural production across the world?
§ Presentation by Ann Berg, Expert consultant for FAO on agricultural futures and cash markets
§ Round table of agricultural leaders from the various continents

Agusdin pulungan :
Causes and consequences of price instability in agricultural commodities, an Intervention
Agriculture is complex to become stable, because it does not take place in an economic vacuum. It should be done in harmony with the natural environment, facilitated by proper social context, availability of knowledge and skills, financial resources, the marketing and trade system.
For smallholder’s farmers, agriculture needs to be seen as a struggle to ensure the family to food. In the other hands, agriculture is essential for harmonic socioeconomic development, providing income and become resources to the most vulnerable households. Moreover, have to be implemented in sustainable manner.
From this complexity environment, the markets of agriculture commodities become fragile or instable in its pricing development.
With regard to the opportunity and its risk, I see there are some approaches that might be useful to manage or to minimize the risk.Capacities that must be considered in the Risk management facing the opportunity of market demand as well as price instability:
1. Organizing the farmers by commodities that they produced (farmers group by commodities): FOs and parterns could actively create cooperatives or partnerships and mobilize local resources to help achieve agricultural market/trade development.
2. Using communication instruments:
Cell phone could play an important role in providing market data, even transaction capabilitie. By text messages (cheaper than voice calls,). Farmers could plan in respond to commodities surpluses and shortages. Farmers could compare and negotiate prices ant the arrange for transaction
3. Applying crop insurance ;
In years of drought, flood, hail or insect plague, its reserve to compensate the farmer for his crop losses. Thus, the farmer is insured against financial disaster, the nation is insured against hunger, and both are insured against the price dips and soars of alternating surplus and scarcity.
(Agusdin pulungan, Paris, 16 June 2011)

“Highlights from the 2020 conference – Feb 10-12, 2011“Leveraging Agriculture for Improving Nutrition and Health”
July 16, 2011

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