Food Business News - July 19, 2011 - 9

Editorial

EDITORIAL STAFF Editor-in-chief Morton I. Sosland Executive editor, markets Neil N. Sosland Editor L. Joshua Sosland Executive editor Keith Nunes Senior editor, markets Jay S. Sjerven Managing editor Eric J. Schroeder Associate editor Jeff Gelski Assistant editor Ron Sterk Internet editors Allison Gibeson Erica Shaffer Graphic designer, market graphics, data Christina Sullivan

MORTON SOSLAND

Data transparency hugely important for markets

editor@sosland.com

PUBLISHING STAFF Chairman Charles S. Sosland Vice-chairman L. Joshua Sosland President and publisher Mark Sabo Associate publisher David DePaul G. Michael Gude Bruce Webster Vice-president, chief ﬁnancial ofﬁcer Melanie Hepperly Audience development director Don Keating Advertising manager Nora Wages Director of design services Sadowna Conarroe Circulation manager Judith Arnone Digital systems analyst Marj Potts Manager of advertising design Becky White Director of e-Business Jon Hall Director of on-line advertising and promotions Carrie Fluegge Promotions manager Jennifer Morris WE’RE EAGER TO RECEIVE YOUR FEEDBACK: E-mail editor@sosland.com or write to us at Food Business News, 4800 Main Street, Suite 100, Kansas City, Mo, 64112

he need for encouraging transparency transparency means improved data collection in information about global food mar- along with the dissemination of information kets has loomed increasingly important about physical cash markets and also better in reaction to the history-making volatility of monitoring of weather conditions. recent months. The claim has been made that Global markets for most foodstuffs over the with adequate information, price swings would years and longer have proved in powerful ways have been considerably less than the terrifying the direct and powerful impact of free-flowing fluctuations that have characterized markets information in accounting for price movements. this year. This concern then leads to a debate And it is these market developments that more whether price volatility, even of the most jar- often than not affect and even determine ring sort, is a positive or negative for achiev- farmers’ decisions about what crops to plant ing long-term goals of an adequate supply of as well as equally important choices that food. More than a few national leaders with re- producers make about timing and quantities sponsibility for achieving transparency or not in marketing of crops. Sheltering farmers from contend that holding markets steady depends on withholdSheltering farmers from reliable information that will help ing information and even on outright secrecy. Others asthem make wise decisions, as some nations have sought sert just the opposite, that the to do, is as counter to progress in food production as any more reliable the data that are available, the less likely are manmade intervention could be. prices to register extraordinary swings. It is Tom Vilsack, the U.S. secretary of reliable information that will help them make agriculture, who recently aligned his commit- wise decisions, as some nations have sought to ment to spurring transparency with a desire do, is as counter to progress in food production to assure free movements among nations. He as any manmade intervention could be. Trade agreements among nations meant to declared that nations “should share information on stocks and production,” while incorporating encourage free-flowing movements as well in the same statement his belief in the necessity as efficient production of foods have rarely, if of abstaining from export embargoes and the ever, incorporated language designed to assure cautious use of export quotas and export taxes. the sort of transparency Mr. Vilsack advocates. He went so far in melding these concepts to It has been mainly the responsibility of entities declare, “We need a concerted effort by the like the World Trade Organization and the private sector, governments and multilateral International Grains Council to assemble the institutions to increase transparency and market data and to disseminate it in a manner that information, increase agricultural productivity will provide real-time information to its users. In too many instances, these organizations and facilitate trade.” This is one of the first times that freedom have encountered resistance in obtaining or of information has been joined with these successfully persuading the release of data that other concepts as fundamental to global will be helpful to understanding just what may food production expanding sufficiently to be happening. Even national weather forecasts accommodate the huge expansion in demand are sometimes withheld to confound observers projected by the middle of this century. seeking information on prospective production. Expressing confidence in the ability of farmers Just those kinds of information gaps proved to to expand production in order to fulfill global be huge factors in the difficulties caused by the food needs, the secretary emphasizes America’s disappointing 2010 wheat crop in the Black Sea commitment to investing in fundamental region. Indeed, just how essential transparency research to bolster productivity. But once is may best be proven by the problems that again, he qualifies his faith in what farmers can unfold when the opposite course is pursued. achieve in using advances made possible by Much is made about freedom of information biotechnology by saying this outcome depends in political debating, but there’s hardly a place on producers having accurate, transparent it is more important than in assuring well information. He goes so far as to explain that functioning food markets. FBN

July 19, 2011

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Food Business News - July 19, 2011

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