Background

Since the 1970s, the international prices of commodities have declined and both farmers in developing countries as well as developed countries have suffered from that. However due to their high dependency on a limited number of commodities, the reduction of agricultural commodity prices in developing countries, particularly in African countries, is one of the biggest causes of poverty.

The main challenge for farmers is how to get a better price in international markets. This price collapse is generally characterised by an oversupply and therefore would imply long-term solutions to address supply-demand management, inherent price volatility, high degrees of market concentration and a development-friendly outcome to the Doha Round of negotiations at the WTO (in particular addressing tariff escalation and export subsidies issues). These responses could be efficient if only in the meantime at national level, diversification is promoted in most of commodities dependent countries.

Commodity issues have always been a central part of the work of IFAP, from its beginnings in 1946. IFAP supported the establishment of the International Wheat Agreement in 1948, and throughout the 1950’s up to the 1970’s a central part of IFAP’s advocacy work was to press for international commodity agreements. IFAP also pressed the GATT to include consultations and negotiations on commodities as early as 1969.

There are many commodity problems that are common to all producers, such as low international prices, commodity support programs, measures to empower farmers in the market, traceability, etc. IFAP therefore created a Commodities Conference with a plenary session that is linked to meetings of the IFAP Executive Committee every year (usually in May). The 1st IFAP Commodities Conference was held in the USA in 1995.

Objectives

 The main objectives of the IFAP commodity activities are to:

• to primarily respond to the needs of IFAP’s members based on the recommendations made by the five commodities groups namely: Dairy products Grains and Oilseeds, Meats and feeds, Sugar, and Tropical commodities (cocoa, coffee and cotton), as well as other identified challenges in commodities markets.
  
• to ensure that farmers are fully involved in the on-going debates on long-term solutions of problems in the commodities markets. For that, IFAP would seek to strengthen its collaboration with specialised commodities organisations as well as international organisations (UNCTAD, Common Fund for Commodities…), research institutes and non-governmental organisations.
  
• to ensure that relevant information on commodities is available to all members and that it would serve as a platform for discussion and information sharing among members.

Main Activities

• Provide information to members on world problems and international events of concern to them
  
• Exchange information among members
  
• Facilitate dialogue between members
  
• Prepare/organise commodities committees
  
• Participation in other IFAP programs e.g DCC program on trade capacity building
  
• Input into IFAP policy papers
  
• Participation in other organisations programs
  
• Involvement in on-going work on commodities such as :OECD work on food chains and private standards; World Bank work on industrial concentration in the food chain; UNCTAD: establishment of commodity task panel; OIE: study on good farming practices; Commodity bodies: cooperation to improve market and trade conditions
  
• Represent IFAP in meetings at regional as well as international levels

Outputs

Commodities Quarterly Newsletter: Bulletin for the four commodities groups: Meats and Feeds; Grains and Oilseeds; Dairy products and Tropical products on a quarterly basis

Briefing papers that could serve as background discussion papers during commodity group sessions during IFAP commodities conferences in order to: 

• To inform farmers’ organisations on the on-going debates related to commodities and how they could participate actively into these debates.

• To emphasis a particular issue in order to point out the situation of farmers and highlight what can be done to improve their situation. These proposals may be used as an input into the on-going debates on commodities.
  
• To share experiences among farmers organisations on a particularly issue related to commodities.

Recommendation papers: One page on specific issues that could be used by all our members for lobbying.

Background papers for IFAP conferences: discussion documents with key questions during the commodities conference and the World Farmers’Congress.

Policy papers for the 37th World Farmers’ congress:  Industrial concentration; International market stabilisation

Organisation of meetings for members to share views.

Partnership/Collaboration

IFAP would seek to strengthen its collaboration with international organisations; specialised organisations; Regional organisations; Governmental institutions; Research institutes and Non-Governmental organisations.