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Managing supplies to raise international agricultural commodity prices








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    Can supply management halt the decline in agricultural commodity prices? 2006
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    The long-term downward trend and variability in agricultural commodity prices pose problems for the agricultural sector and the macroeconomy of commoditydependent developing countries.Declining real commodity prices are seen as the result of the tendency for supplies to increase ahead of demand. This has led to interest in the scope for supply control agreements among producing countries to influence prices, similar to the international commodity agreements of the past.Declining real c ommodity prices are seen as the result of the tendency for supplies to increase ahead of demand. This has led to interest in the scope for supply control agreements among producing countries to influence prices, similar to the international commodity agreements of the past.Declining real commodity prices are seen as the result of the tendency for supplies to increase ahead of demand. This has led to interest in the scope for supply control agreements among producing countries to influe nce prices, similar to the international commodity agreements of the past.Declining real commodity prices are seen as the result of the tendency for supplies to increase ahead of demand. This has led to interest in the scope for supply control agreements among producing countries to influence prices, similar to the international commodity agreements of the past.While an agreement among producing countries to restrict supplies may raise commodity prices, the difficulty is to design work able supply management mechanisms and to maintain the commitment of the parties to such agreements.
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    The 2007-08 Rice Price Crisis
    How policies drove up prices... and how they can help stabilise the market
    2011
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    After increasing slowly and steadily from historic lows, world rice prices tripled in just six months during 2007-08. The price surge caused much anxiety because so many of the world’s poor are rice consumers. And it caught many by surprise as market fundamentals were sound. Indeed, it was government policies, rather than changes in the production and consumption of rice, that drove the surge. This suggests that improved government policies can help avert such crises in the future.
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    Food Outlook - June 2007 2007
    World cereal production in 2007 is forecast to reach 2125 million tonnes, up 6 percent from the reduced level in 2006. It would exceed world cereal utilization in 2007/08 which is forecast to grow by 2 percent, to 2 114 million tonnes. As a result, world cereal stocks are likely to rise by 10 million tonnes to 413 million tonnes, still a very low level. World trade in cereals in 2007/08 is forecast at 247 million tonnes, down slightly from 2006/07. While the prospect of a strong recovery in glob al cereal production in 2007 is a positive development for the 2007/08 marketing season, total supplies in the new season would still be barely adequate to meet an anticipated rising demand, not only from the traditional food and feed sectors but in particular from the fast-growing biofuels industry. As a result, international prices for most cereals are likely to remain high and volatile again in 2007/08...

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