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Organic production and sustainable agribusiness - Term Paper Example

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Organic Production and Sustainable Agribusiness World food prices as recorded in January 2011 were at their highest level since 1990. The recent price volatilities and uncertainties in the global food and agricultural markets have sparked a recent spate of debates regarding various related issues…
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Organic production and sustainable agribusiness
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Organic production and sustainable agribusiness

Download file to see previous pages... This was an important step towards achieving long-run sustainability in the industry. The development can be studied in the context of various economies of the world. For example, the agricultural and food sector of Europe has always been known for its quality and strong foundation. This industry in the continent functions according to the regulations of the Common Agricultural Policy (CAP) which is implemented in all the countries of the European Union. Following this common model, the member nations have been able to promote agricultural growth in their own respective economies which has been able to satisfy the food demand of the European citizens and also generate some surplus produce for exporting to the foreign economies. Europe has set a very high standard of agricultural production based on the framework of the CAP. The importance of regulations and standardizations related to any industry is sometimes undermined thinking that they usually produce a hindrance to the growth of the industry. However, this notion is not always correct. It is an accepted fact that Europe’s CAP has been successful in harnessing the true potential of the food and agricultural sector of the continent. Europe is already reforming its CAP and plans to incorporate the amended version from 2013 onwards in the Europe 2020 Strategy. The new CAP will focus on building a self-sufficient agricultural sector which ensures food security, uses natural resources in a more sustainable method way and specially concentrates on the progress of the rural sector. Therefore, the reformed CAP will contribute significantly towards the overall Europe 2020 Strategy which would aim at the sustainable and inclusive development of the entire European Union. One of the major instruments of the CAP is its “policy on the information provision and promotion measures for agricultural products. The reform process of the CAP would involve a fundamental review of this policy. (European Commission 2011) During the course of the International Food and Agribusiness Management Association’s (IFAMA) 20th Forum, Professor Ray Goldberg predicted that the sector issuing standards and certification for the food and agricultural sector would emerge as the most dynamic sector during the next decade. Governments of various countries and many of the food companies concentrate on building their internal capacities and ensuring that they conform to the regulations in the sector. Alternatively, retailers in this sector are more focused on obtaining standard compliance through certification. In January 2011, global food prices were reported at their highest level since 1990. This produced a variety of effects in the different economies of the world – decreasing food supplies, high inflation and an overall adverse impact on economic growth and development in most countries. These effects were magnified in food deficit countries which had low per capital income. In such a situation, the formulation of adequate property rights and obligations for the organic food and agricultural sector assumes a huge importance. For this the concerned policy makers need to understand the futures market in agriculture, the formation of prices in this sector and the price movements. Experts are also considering the fact whether the industry requires increased rules and regulations for achieving sustainability. (IFAMA 2011) Greening Economy and the Organic Food and Agricultural Sector ...Download file to see next pagesRead More
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