75th Session of the Committee on Commodity Problems (CCP) Opening Statement
by Dr QU Dongyu, FAO Director-General
13/07/2022
75th Session of the Committee on Commodity Problems (CCP)
Opening Statement
By
Dr QU Dongyu, FAO Director-General
Rome, Italy
13 July 2022
Excellences,
Ladies and Gentlemen,
Dear Colleagues,
1. The last CCP Session took place in March 2021. Today, as we convene for the 75th Session, the pandemic is still around us, thanks to vaccination and effective management, situation has been improved a lot.
2. But the world is faced with additional challenges due to ongoing conflicts, including the war in Ukraine, as well as persistent extreme climate conditions.
3. Global food security is threatened in many, and often overlapping, ways.
4. The ongoing conflicts and war are causing price increases in food, feed, fuel and fertilizer.
5. The FAO Food Price Index reached a record high in March 2022 of 160 points, and the latest Index released on 8 July continues to show only a slight decrease since then.
6. Prices of cereal and animal products continue to rise, as does global hunger.
7. The 2022 State of Food Security and Nutrition in the World (SOFI) report, released on 6 July, shows that up to 828 million people suffered chronic hunger in 2021, with an increase of 150 million since the outbreak of the pandemic.
Dear Colleagues,
8. Market transparency and coordination are critical for reducing uncertainty in global agrifood markets.
9. FAO continues to provide valuable support to inform and guide policy decisions,
10. By providing up-to-date and objective information on markets, monitoring policy developments, promoting dialogue, and proposing policy recommendations.
11. Our Information Notes on the war in Ukraine and the associated risks for world markets and food security are a global point of reference,
12. Together with our regular market monitoring, assessment and short-term outlook.
13. The G20 Agricultural Market Information System (AMIS), hosted by FAO, continues to play a leading role.
14. On 29 June, we launched the 2022 edition of the joint OECD-FAO Agricultural Outlook report,
15. Which focuses on assessing the medium-term prospects for agricultural commodity markets for the next decade from 2022 to 2031,
16. And it also provides a short-term assessment of how the war in Ukraine, together with other ongoing conflicts, may affect agricultural markets and food security.
17. We need to boost additional public spending and private investment in innovation, technology and infrastructure, as well as human capital, to improve agricultural sustainable productivity.
18. FAO’s work extends beyond market monitoring and outlook, and includes trade policy analysis and the assessment of the linkages between agrifood trade and sustainable development.
19. In this regard, I welcome the outcomes of the recent WTO Ministerial Conference which highlighted that an inclusive, balanced and fair global trading system is conducive to ending hunger and malnutrition.
20. The Declaration on the Emergency Response to Food Insecurity underlines the commitment by WTO to take concrete steps to facilitate trade, and its role in improving global food security.
21. FAO’s role on trade is complementary to the WTO, as it provides the required technical analysis and research in trade issues.
22. Rising international food prices are increasing food import bills, and putting additional fiscal pressure, particularly on the budgets of developing countries.
23. The global food import bill is on course to hit a new record of 1.8 trillion US Dollars in 2022, due to higher prices and transport costs, rather than volumes.
24. In response, FAO has proposed the Food Import Financing Facility to provide balance-of-payment support to the most affected countries.
25. Trade is vital for achieving the 2030 Agenda and the SDGs,
26. And this is clearly reflected in the FAO Strategic Framework 2022-31.
27. Trade promotes food security and nutrition by linking food surplus regions with those in deficit.
28. This is also at the core of the FAO Hand-in-Hand Initiative.
29. It is essential that countries stop using trade restriction measures, which add to price increases and extreme price volatility, and harm those that depend on global markets for their food security.
30. The 2022 edition of the State of Agricultural Commodity Markets (SOCO) focuses on the structural changes in the global agrifood markets, and on the role of trade in addressing environmental impacts.
31. In spite of the current tendency to trade mostly within regions, multilateral trade remains the most efficient way to promote market access and economic growth for all.
32. And only multilateral collaboration can successfully address global environmental challenges such as climate change.
33. I look forward to the CCP’s suggestion on what we can do better, together, in order to achieve more efficient, more inclusive, more resilient and more sustainable agrifood systems,
34. For better production, better nutrition, a better environment and a better life for all, leaving no one behind.
Dear Colleagues,
35. In 2022, the Committee celebrates its 75th Anniversary, as it was the first Technical Committee to be established at FAO.
36. It has a long history of serving as a unique global intergovernmental forum for debate, open dialogue and exchanges on economic aspects of commodity markets and trade, and food security matters.
37. Let us continue working together in an efficient, effective and coherent manner to make the work of the CCP even more impactful.
38. I wish you a successful and fruitful meeting, and I look forward to the outcomes of your deliberations.
39. Thank you.