In the contents of this new newsletter:
Towards an OPEC of Cocoa?
This new issue leaves an important place to the question of the control of the supply. This subject is indeed at the heart of initiatives undertaken by cocoa-producing countries to remedy the drop in prices they have suffered since 2015. Controlling supply seems indeed the only way to rebalance sectors where the downstream is very concentrated. Lessons for agricultural Europe?
An amazing parallel between steel and milk
Mastery of the offer, again. As Steve Suppan points out, behind Donald Trump’s steel wrestling, there is talk of reducing overcapacity in production and thus the distribution between countries of this reduction. Because, in any heavy industry, price adjustment is too slow not to be accompanied by other measures. Hence the timely rapprochement it makes with the milk crisis that now affects the United States, hitherto spared: rather than attacking Canadian quotas, should Americans rather copy the regulation to the Canadian?
Supply control at the heart of the success of products under geographical indication
Mastery of the offer, always. A recent FAO report provides an analysis of the success factors of 9 protected geographical indications spread over 5 continents. It appears that improving the organization of producers to enable them to influence the formation of the price, either by controlling supply or by collective bargaining, is one of the main factors of success for products under indications. geographical.
In China, cereal prices that make you dream … and that should make you think
The price of Chinese wheat is more than twice the European price thanks to a policy of guaranteed minimum prices. Is China an exception? No, on the contrary, it is Europe which is the only major producer, to have neither the export vocation of the Russian, Ukrainian or Argentinean Great Plains, nor the means of protecting its producers with counter-cyclical aid like the United States. United States or Canada, nor the will to protect against international prices of dumping. Is strategic thinking needed to break the deadlock?
How to enable the development of local milk production in Africa?
A recent report from GRET provides a detailed and operational overview of the interest and the means to allow the takeoff of this production, taking particular example of the growing success of local poultry sectors. In particular, the example of Nigeria, where an agreement was reached between the State and the companies producing from imported powders, enables the share of local supply to be increased in the medium term from 3% to 10%.
Contracyclical payments more than ever a cornerstone of the Farm Bill
Finally, we propose an analysis of the University of Illinois of the latest budget estimates of the US Congress where it is envisaged a rise in power of the countercyclical program on price reference (Price Loss Coverage), given its best performance in face a prolonged period of low prices.
Good reading !
The writing of Agriculture Strategies