At the beginning of 2002, world agricultural commodity prices, which had been declining for several years, were at historically low levels for many products. Moreover, most assessments indicated that there were limited prospects for recovery in the short term. Therefore, following some preliminary contacts among organizations and institutions concerned with agricultural commodities, it was agreed to convene a Consultation on Commodity Price Problems in Rome at FAO Headquarters on 25-26 March 2002. The Consultation brought together the Executive Heads of International Commodity Organizations; representatives from various international agencies including FAO, UNCTAD, the International Monetary Fund, the World Bank, the UNCTAD/WTO International Trade Centre, CFC and OECD; and high level experts from academic institutions and national governments.
The problems of price depression and variability were examined from various points of view, and special attention was given to the implications of various factors including technology advances, changing market structures and policy changes at both the national and international levels. The adverse impacts of price developments on developing countries were highlighted, and various suggestions were made for remedial measures.
The importance of the Consultation was that it brought together the world's institutional and technical leadership dealing with commodity matters. The resulting exchange of views and expertise on common problems of wide dimensions helped to focus on the issues associated with the price depression and on possible avenues to be pursued within the areas of competence of the respective organizations and institutions, either individually or as part of a programme of cooperation. Following two days of intensive discussions, all of the participants felt that they had gained in their appreciation of common concerns and of the possible opportunities for strengthening mutual cooperation in order to further the interests of their respective commodity sectors. Their conclusions and recommendations include a programme for both future research as well as operational activities. These are presented in the Report of the Consultation which is included in the first chapter of this volume. The remainder of the volume covers expert presentations to the Consultation. Another volume prepared by the Commodities and Trade Division is also being issued which is entitled "Commodity Profiles and Relevant WTO Negotiating Issues".
Although there are important differences in the underlying conditions affecting the various agricultural commodity markets, there are also some very significant commonalities which impact across these markets to affect agricultural producers and consumers. Taking stock of these factors, and particularly their implications for developing countries, can constitute an important contribution towards achieving a more sustainable and equitable environment for international commodity trade.
In the context of the cooperation established between International Commodity Organizations, International Agencies, and Academic and Governmental experts, FAO would welcome the opportunity to host future periodic consultations, the next one possibly during the occasion of the forthcoming 64th Session of the Committee on Commodity Problems.
In closing I should like to express my appreciation to all the participants of the Consultation on Commodity Price Problems for their valuable contributions. Their respective areas of knowledge and expertise provided the basis for rich and informative discussions and for the achievement of integrated and authoritative assessment of issues and possible remedial approaches.
Paola Fortucci
Director
Commodities and Trade
Division
