AMIS seen benefiting global food system
THE Agricultural Market Information Systems (AMIS) plays a crucial role in enhancing transparency and policy coordination in international food markets, an economist of the United Nations Food and Agriculture Organization (FAO) said.
Maximo Torero, FAO chief economist, stressed during the recent Global Forum for Food and Agriculture 2024 in Berlin that AMIS has helped prevent unexpected price hikes and strengthen global food security.
AMIS was launched in 2011 by the G20 Ministers of Agriculture following the global food price hikes in 2007-2008 and 2010. The information system, composed of G20 members plus Spain and eight additional major exporting and importing countries of agricultural commodities, assesses global food supplies (focusing on wheat, maize, rice and soybeans) and provides a platform to coordinate policy action in times of market uncertainty. Hosted by FAO, AMIS involves nine international organizations and aims to address the inherent risks and uncertainties within agrifood systems.
Torero also emphasized the importance of expanding AMIS’ focus to include logistical considerations, especially in the context of rising insurance costs and geopolitical risks on crucial transportation routes.
“Logistics is also important, not just because of ports being closed but because of prices of insurance companies going up and risks that we are facing in the Red Sea, risks that we face in the Black Sea, and risks that we could be facing because of lower levels of water in the Panama channel, which are central for us to move commodities across the world,” he explained.
AMIS, Torero added, plays a pivotal role in reducing information asymmetry, a crucial factor in preventing wrong policy responses such as export distortions, market volatility and potentially excessive speculation.
The FAO chief economist also highlighted AMIS’ contribution to providing comprehensive information on supply and demand dynamics, enabling market participants to make informed decisions during periods of excessive volatility.
Acknowledging the challenges faced by the initiative, particularly in obtaining information from certain countries, he stressed the need for continuous updates and finding alternative ways to address data gaps.