CAOBISCO advocates the importance to stimulate efficient productivity for a sustainable supply of high quality cereals.
Cereals are one of CAOBISCO’s main ingredients. The EU cereals market is the most liberalised market in the European Union and price trends for cereals move in parallel with the world market. Therefore, the European supply of cereals highly depends on the world market situation.
Factors that influence the cereal market are multiple: the economic crises in US, EU and China, crops in Russia and Argentina, extreme price volatility, investment funds involvement and of course, exchange and interest rates variation. All these factors need to be monitored carefully by CAOBISCO.
In general the EU has a crop production of wheat sufficient to meet user’s demand. However, food and feed consumption is increasing in emerging markets outside of the EU as well as the needs for cereals for biofuels production. Wheat production and consumption trends are more or less aligned for the moment however the maize consumption has a direct impact on world stocks of cereals.
CAOBISCO reacted to the Commission CAP Reform proposals stressing the importance to stimulate efficient productivity for a sustainable and sufficient supply of high quality cereals on the EU market.