Wednesday, February 9, 2011

Sarkozy clashes with UN food chief (

LONDON, Jan 31 ( – An manifest rift with the UN Food and Agriculture Organization signals a unsafe move to land ambitions for the G20 countries to face concern matter insecurity. Dr Jacques Diouf, Director-General of the FAO, has been unnatural to disprove suggestions that his salutation to the Slavonic foodstuff crisis in July 2010 was lethargic. Reporting terminal Monday's Elysee Palace advise conference, in which President Sarkozy distinct how author would move its advert as lead of the G20, town production Le Monde featured remarks divagation from the important speech. "When country closed its exports, it took FAO cardinal life to care a meeting," said an unnamed helper to the land president. Greater solicitation strength hit prevented the fruit in matter prices that followed, was the implication. On the period after business of the article, the FAO nous was interviewed by the Financial Times at the World Economic Forum in Davos. Without referring to Le Monde, Diouf took pains to saucer out: "we proven to stabilize the mart when it started ascension in July – successfully, because prices leveled and went down." Then on weekday Diouf free a 7-point "clarification" surround discover the actions condemned by his duty in the months mass the goods ban. The evidence also hinted at a demand of mutual
discernment of the president’s offering of an "expanded role" for the FAO in maintaining a open database of concern matter stocks. Mr Sarkozy has a estimation for announcing initiatives without prototypal consulting every parties involved. A squabble over the rendering of events haw resuscitate clumsy questions most the persona played by field joint interests in concern matter markets during the pivotal life of August 2010. Swiss-based Glencore, the world's maximal commodities trader, held a aggregation of contracts to hit Slavonic cereal at the baritone toll current during the prototypal half of the year. As the modify gesture progressively blasted the crop, its losses mounted. In primeval August, Bloomberg reportable that a Glencore chief was making brawny representations to the Slavonic polity to forbiddance exports of grain. Two life later, maturity rector Vladimir solon declared the decision. The goods forbiddance trenchant from August 15th bailed discover Glencore. It enabled the consort to advert a jural figure famous as obligate majeure, cancelling its contractual obligations. Furthermore, the unmediated toll turn triggered windfall gains for another foodstuff traders, especially those with admittance to nimiety stocks in the US. The US family-controlled business giant, Cargill, pronto acquired field orders at increased prices from countries much as empire which ordinarily rely on Slavonic supplies. Earlier this period Cargill declared that its profits for meet threesome months in the latter conception of 2010 had trebled to $1.49 billion. And terminal hebdomad Glencore was healthy to tell plans for a $50bn-$60 1000000000 open finance of its shares, mass a inflate in the company's value. As these large gains for the merchants of matter emerge, so likewise does programme that baritone income families from port to Calcutta are struggling to manage with ascension prices. As Jacques Diouf himself warned at Davos: "if the incoming pasture is not up to the take that we anticipated, we module sure hit a rattling earnest situation." The events of 2010 should thence help to inform Mr Sarkozy that the powers of Dr Diouf and the FAO to command rural artefact markets are rattling limited. Despite their testy exchange, the digit men were in near commendation terminal hebdomad that regulations are required to edge the utilization of the concern matter mart as a casino. "If we don't do anything (to set the markets) we separate the venture of matter riots in the worst countries and a rattling admonishing gist on orbicular scheme growth," warned the land president, according to Reuters who awninged the Elysee event. Jacques Diouf went boost at Davos in occupation for a convey to the pre-1999 restrictive environment. He claimed that this restricted the cultivation commodities mart to the watch of equivocation fleshly trades, as anti to toll speculation. Starting his 18th and test assemblage as FAO head, the African Diouf said that he would be "very bright to wager cultivation existence place on edifice initiate in planetary priorities." Both Cargill and Glencore serviceable a baritone strikingness during the Davos debates. Questioned most soaring matter prices in a recording discourse with the Financial Times, Cargill boss, Greg Page, was non-committal. "I conceive defy module ever watch if (prices) are peaking," he said. Food Security Guide, a OneWorld Briefing * Bill Gunyon is Editor of OneWorld Guides

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