In view of escalating geopolitical conflicts, economic slowdowns, and the growing climate crisis, the Agricultural Market Information System (AMIS) plays a crucial role in enhancing transparency and policy coordination in international food markets, Maximo Torero, Chief Economist of the Food and Agriculture Organization of the United Nations (FAO), said speaking during an expert panel at the 2024 Global Forum for Food and Agriculture (GFFA) in Berlin.

Torero explained how the high level of concentration in cereal markets makes the agrifood system vulnerable to external shocks. A disruption in any of the key exporting countries will have a direct consequence on prices and volatility. Torero also emphasized the importance of logistics in assuring the smooth movement of cereals and agricultural inputs around the world. Any shock can result in immediate price fluctuations in global cereal markets.

AMIS, he said, has played a pivotal role in reducing information asymmetry, a crucial factor in preventing trade policy restrictions, market volatility, and potentially excessive speculation. By providing comprehensive information on supply and demand dynamics, AMIS has enabled market participants to make better informed decisions during periods of market uncertainty.

He also acknowledged the challenges faced by AMIS, particularly in obtaining regular and reliable information from its participating countries. To this end, he called on these countries to actively engage and support the initiative, and highlighted the need to find alternative ways to address data gaps.