REVIEW
IGC LONDON
IGC Conference 2019
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by Vaughn Entwistle, Managing Editor, Milling and Grain
he 29th International Grains Council meeting was held on the 11th and 12th of June 2019. The main purpose of IGC Grains Conference is to highlight the key challenges facing the international grains and oilseed industry. This year, speakers attended from around the world, and a special focus was placed
on Africa. The meeting was chaired by Mr Shuichi Akamatsu, Minister, Embassy of Japan. Overall grain production in 2019/2020 is produced to rise by two percent; However grain consumption is forecast to exceed supply. World production of rice has gone up over the last three years. While production of wheat has fallen slightly over the last few years, due to weather events such as the spring flooding in the American West, world wheat prices have increase. In 2018, the major reason for wheat price jumps was due to currency issues with the US dollar. Michael Scandrell of the European Commission explained that, in general, the EU generally enjoys stable grain markets. However, there is a growing consensus from the public and regulatory agencies for greater environmental sensitivity in all forms of agriculture, as well as a focus on sustainability while reducing greenhouse gas emissions. Mr Shuichi Akamatsu, Minister, Embassy of Japan
Johnathon Brook, Head of Agro-Food Trade and Markets, OECD
100 | July 2019 - Milling and Grain
Gerald Makau Masila, Executive Director, EAGC
Trade wars and political issues
Trade disputes continue to cause instability in the markets. A particular concern has been the damaging effects of politicallymotivated trade wars, such as the battle over soya beans currently raging between the USA and China. The full effects of the trade ban by China on US soybeans has been somewhat ameliorated by the prolonged impact of African Swine Fever on Chinese demand. Meanwhile, three years on, Brexit continues to loom over the economies of the UK and the EU, with no one able to guess how a no-deal Brexit will impact cereals trading. And, as always, the weather is always a factor as continuing poor weather in the American Great Plains delayed the spring planting. After the first day’s session ended, H.E. Mr Koji Tsuruoka, Ambassador of Japan to the UK, and Mr Shuichi Akamatsu, IGC Chairman, welcomed IGC Council delegates and conference participants to a reception at the Japanese embassy. Day two of the conference featured workshops covering biodiesel trends, prospects for wheat products, pesticide MRLs and their importance for the international trade of agricultural commodities, managing price risk in the rice trade and future of the grains shipping sector. The IGC presented a panel on its work with industry and governments to achieve a market and regulatory environment supportive of trade that avoids disruptions in the international movement of grain, oilseeds, pulses and derivatives products. www.igc.int