Established in December 2005, momagri's mission is to provide objective analyses and concrete solutions to current and future global agricultural problems by promoting an international governance model of agriculture, which brings together both free trade and market regulation. Momagri was founded by a number of large French agricultural and financial cooperatives, and is now represented by its numerous partners from the political, agricultural, health care, and NGO communities. Among its accomplishments, momagri developed and fine- tuned an economic model with a unique focus on the agricultural sector. It is the only model to take into account the unique characteristic of the agricultural sector, and it stands apart from the current models used in international negotiations. Surpassing all expectations, this model helped us to anticipate last fall's sharp drop in the price of agricultural food commodities, and in doing so attracted the attention of several organizations, including the International Monetary Fund.
According to momagri, agricultural food commodities cannot be compared to simple manufactured products. Based on initial models released in late March, unregulated liberalization of the agricultural sector would have a spectacular effect on the volatility of agricultural prices. Momagri projects that in 15 years, the poorest countries will experience a 60% drop in agriculture revenues. The wealthiest nations will be faced with a 30% drop. Even the farmers from China and India, two importing nations, will see their revenues decline by 30%. Food crises will occur with increasing regularity.
Momagri experts go so far as to compare upcoming crises to the 2008 crisis, during which 17 countries, including Argentina and India, had to impose restrictions on agricultural exports in order to feed their respective populations. The only winners, according to this new model, will be the farmers from emerging exporting nations such as Brazil. They will enjoy a 10% increase in their revenue.
Need I remind you that farmers, regardless of who they are or where they come from, cannot survive in a highly chaotic marketplace. That is why momagri favours a governance model the primary focus of which is to ensure a secure food supply for the planet. This is why momagri intends to make food security a G20 issue on par with financial market regulation and economic recovery.