Food Business News - May 21, 2013 - 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

MORTON SOSLAND

editor@sosland.com

Exports once again
to center stage

Senior editor, markets
Ron Sterk
Associate editor
Jeﬀ Gelski
Assistant editor, markets
Laura Lloyd
Internet editors
Allison Gibeson
Erica Shaﬀer
Monica Watrous
Graphic designer, market
graphics, data
Christina Sullivan
PUBLISHING STAFF
Chairman
Charles S. Sosland
Vice-chairman
L. Joshua Sosland
President and publisher
Mark Sabo
Associate publisher
G. Michael Gude
David DePaul
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
Lon Davis
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

May 21, 2013

f the many forces at work accounting the same by manipulating currency values
for recent volatility of crop prices, and controlling imports as well as exports in
one that has been accorded less at- pursuit of stabilizing domestic prices. These
tention than usual is fluctuating export de- moves neglect the impact of such actions on
mand for grains. At times in the not so dis- global and other national markets.
tant past, variations in grain export sales and
The W.T.O. has gained a significant role in
shipments were blamed for wild price swings how all of this plays out in light of the choice
and especially for the sort of ingredient cost just made of the new director-general of the
advances that caused food manufacturers Geneva-based organization. Selected to sucmany problems in recent financial reports. ceed Pascal Lamy, who has held the post for
Instead of focusing on exports, crop analysts the past eight years, is Roberto Azevêdo of
and purchasing executives have centered at- Brazil. Mr. Azevêdo has been his country’s
tention on unpredictable and often
devastating weather patterns, on
It is not unusual to see a market analysis that overlooks
the government-sponsored ethanol program as exerting a huge
the role of exports as important to understanding
influence on use of corn, and even
on the state of the domestic and
prices of agricultural products.
global economies and how they affect consumer spending. It is not
unusual to see a market analysis
that overlooks the role of exports as impor- ambassador to the W.T.O. and he easily won
tant to understanding prices of agricultural election to the post, winning over a candidate from Mexico who initially had the U.S.
products.
This lower ranking for exports as a force endorsement. Hardly any of the 129 member
behind agricultural prices does not mean countries of the W.T.O. relies on agriculture
foreign business no longer deserves careful as a greater economic force than does Brazil.
watching by those concerned with ingredient Mr. Azevêdo is credited with playing a lead
costs. It primarily reflects the reality of a pe- role in representing developing nations in the
riod in market history that attributes greater stalled negotiation of agricultural provisions
weight to different factors, a time when ex- of the Doha Round of multilateral trade talks.
In becoming the first director-general
port demand is mitigated by global recession and when the force of supply-demand from South America, Mr. Azevêdo also has
variations is restrained by the way govern- acknowledged the principal task he faces in
ments seek to take actions to offset forces seeking to revive the Doha Round talks. It is
that might have had consequences for prices. a long 20 years since the Uruguay Round was
Many examples of such official intrusions completed as the last multilateral agreement,
may be cited, but none relate more directly to and it is important in this context to recall
artificial prices than the way China and Rus- how that negotiation led to considerable,
sia control their export and import transac- but brief, expansion of trade and exerted a
tions in order to relieve their domestic food marked influence on the structure of American crop supports. Since Congress is once
economies of international influences.
It is impossible to declare either export or again engaged in trying to draft a new farm
import controls of agricultural products as bill, the commitment Mr. Azevêdo has made
a worse “beggar thy neighbor” policy. Each to try to re-start the Doha Round at the W.T.O.
runs counter to the declared aim of the World member meeting this December in Bali, IndoTrade Organization, of which the two nations nesia, takes on importance for the American
are members. The W.T.O. stands for open food industry. That is doubly so when it is betrade between nations, especially in crops lieved that freeing agricultural trade from the
and food products. By limiting its wheat ex- shackles imposed by neglect of W.T.O. goals
ports in times of crop shortfalls Russia vio- holds out the real possibility of restoring exlates the most basic W.T.O. tenet. China does ports to center stage. FBN

FOODBUSINESS NEWS

Food Business News - May 21, 2013

Table of Contents for the Digital Edition of Food Business News - May 21, 2013