forty-first session of the international grains council...

41ST SESSION GC41/13 Restricted (8 June 2015) 10 July 2015

FORTY-FIRST SESSION

OF THE

INTERNATIONAL GRAINS COUNCIL

LONDON

8 June 2015

SUMMARY RECORD

This summary of the proceedings at the Council session has been prepared by the Secretariat. A list of contents, based on the Agenda (as adopted), is set out overleaf. Documents referred to in this Summary Record are available to IGC members on the member internet website.

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Международный совет по зерну

1 Canada Square, Canary Wharf, London E14 5AE, England. Tel: +44 (0)20 7513 1122. Fax: +44 (0)20 7513 0630. Email: [email protected]

ii

41st SESSION OF THE INTERNATIONAL GRAINS COUNCIL

East Wintergarden, 43 Bank Street, Canary Wharf, London, E14 5NX

Monday 8 June 2015

AGENDA (as adopted)

Page

1. Adoption of the Agenda 1

2. Grains, rice and oilseeds market situation and outlook 2

3. National trade-related and other policy developments 2

4. Statements by observers from international organisations 2

5. Cooperation with potential new IGC members 1

6. Programme of work 3

(i) Progress report on 2014/15 Programme 3

(ii) Proposals for 2015/16 3

(iii) GMR Markets and Trade Plus 4

7. AMIS: update 4

8. Administrative and financial matters 5

(i) Budget and contribution proposals for 2015/16 5

(ii) Outstanding member contributions 7

(iii) Contribution arrears 7

(iv) Executive Director’s contract 7

(v) Accommodation issues 8

(vi) Assessment of the IGC 10

(vii) Staff regulations and rules: retirement age 11

9. Trade reporting by members under Article 7 of the GTC 5

10. Grains Trade Convention, 1995 (GTC) 12

(i) Membership 12

(ii) Future action: Extension of the GTC 12 (iii) Listing of members under Article 12: 13 exporting and importing members (iv) Votes of members under Articles 11 and 12 13

(v) Elections for 2015/16 13

(vi) Appointment of future Executive Directors 14

11. IGC Grains Conference 2015 14

12. Arrangements for the 42nd Council Session and International Grains 14 Forum in Buenos Aires, Argentina

13. Schedule of meetings 14

14. Credentials Committee report 14

15. Other business 15

Documents attached to Summary Record

GC41/Info.2 Charts for grain market discussions GC41/11 Schedule of meetings GC41/12 Credentials Committee Report GC41/Misc.1(Rev.) Documents for the Session GC41/Misc.2 List of participants PR(IGC June 2015) IGC Press Release

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41st SESSION

Monday 8 June 2015

Chairman – Mr. Abdulrahman Al Ruwaitie (Saudi Arabia) 1. The Chairman welcomed members and observers to the Session and informed them that the session would begin with Item 5 as the Chinese delegation making a presentation under that item had to leave early. Item 9 (trade reporting by members) would be dealt with after Item 7 (AMIS update). Under Item 15 (other business) the Executive Director would propose inviting the International Grains Trade Coalition (IGTC) to attend IGC meetings as an observer. Item 1. Adoption of the Agenda 2. The Council adopted the Agenda as circulated in document GC41/1. Item 5. Cooperation with potential new IGC members 3. The Chairman welcomed the Chinese delegation from the State Administration of Grain (SAG) to the Council Session and invited Mr Lu Jing Bo, Vice Administrator to make a statement. 4. Mr. Lu (China) stated that since joining the WTO, China had been co-operating more closely with international markets to discuss the main issues. The IGC, which they considered an influential international organisation, had contributed a great deal in promoting international grain trade analysis and information sharing. The data provided by the IGC was highly valued in Beijing. The Executive Director had visited China several times and had discussed relevant issues including China joining the IGC. SAG was positive about joining the organisation and had consulted the relevant departments on the issue. Their main task during their visit was to deepen their understanding of the IGC and learn more about its functions and achievements so that they could inform their counterparts and colleagues in Beijing. They would try their best to consult with the relevant departments to speed up the process of joining, but in the meantime would enhance information-sharing and communication with the IGC. They were also interested in having discussions with colleagues at the Session about grain market information analysis. Communication and cooperation would help to promote grain trade and stabilise grain prices in international markets. 5. Mr Aoyama (Japan) said that Japan welcomed the participation of China, which had a great influence on world grains and oilseeds markets, to the Council session and the IGC Grains Conference the next day. Japan hoped that they would continue to participate in IGC activities. 6. Mr Toure (Côte d’Ivoire) also welcomed China to the Session and congratulated the Executive Director for all his efforts to attract new members. China was a great importer and producer of grains and Côte d’Ivoire would welcome them joining the organization. 7. Mr Richardson (Canada) said that Canada welcomed China’s continued involvement in the IGC and also hoped that they would be able to join the organisation which Canada found very useful and which had been very successful over the years.

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8. Ms Seain (Argentina) welcomed China and hoped that the membership process would be quick. 9. Mr Willems (EU) stated that the EU also welcomed China’s participation at the Session as well as the Secretariat’s efforts to increase the number of members and encouraged them to continuing doing so. 10. Mr Whitley (US) echoed members’ previous comments also welcoming China’s participation in the meeting. Item 2. Grains, rice and oilseeds market situation and outlook 11. The Secretariat’s presentations with related commentaries are set out in GC41/Info.2 at the end of this document. 12. Ms Seain (Argentina) stated that the Argentine Ministry of Agriculture and Fisheries had reported a record crop in 2014/15 estimated at 119m tons of which 60m comprised soya, 31m maize, almost 14m wheat and smaller amounts of sorghum, barley and rice. They were working on official estimates for the year 2015/16 which would be reported to the Secretariat as soon as they were available. Item 3. National trade-related and other policy developments 13. Mr Cooper (Secretariat) introduced document GC41/21 outlining the trade-related and other policy developments since the December Council Session. Item 4. Statements by observers from international organisations 14. Mr Abbassian (FAO) made a statement (document GC41/Misc.3). 15. Ms Giner (OECD) made a statement (document GC41/Misc.4). 16. Mr Willems (EU) said that the EU fully supported the inclusion of the IGC in the AMIS Secretariat and it welcomed Mr. Abbassian’s and his team’s efforts to improve the quality of the data and figures transmitted by AMIS participants. 17. Mr Richardson (Canada) said that Canada wished to echo the EU’s comments. They also fully supported the AMIS initiative and the OECD and were pleased that the IGC was co-operating with AMIS. 18. Mr Toure (Côte d’Ivoire) agreed with Canada and the EU adding that the contribution of the OECD and FAO was much appreciated. 19. Mr Funes (Argentina) also wished to echo the previous comments and to thank the AMIS Secretariat for the work carried out with FAO and OECD. Argentina also supported and endorsed IGC’s continued contribution to AMIS. 20. Mr Abbassian (FAO) thanked members for their warm support. The IGC Grains Conference the next day would be the first time AMIS would be discussing markets in public. They had not publicised their market outlook that much as there were other platforms, e.g.

1 See revised document GC41/2(Rev.) on IGC member website.

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the Council and FAO already doing this. AMIS was maturing and should be presented as complementary to the existing systems and not as a competitor replacing existing systems. He hoped that at the Conference the next day, he could get the message across that he wasn’t presenting something new, but was reflecting collaboration with the international community and in particular its members. Item 6. Programme of work (i) Progress report on 2014/15 Programme (ii) Proposals for 2015/16 21. The Executive Director introduced document GC41/3. He reviewed the work programme for 2014/15 which had included the issue of the new Daily Price Sheet, circulated from May 2014 and the more detailed Daily Rice and Oilseeds Briefs from October 2014. The Secretariat had discontinued the Weekly Rice and Oilseeds Market Bulletins in October 2014 to avoid duplicating its efforts and to allocate personnel resources more effectively. 22. Regarding the proposed programme of work for 2015/16, following a request from members, the Secretariat had added a new medium-term priority to foster improved links with participants in the international grains trade with a view to promoting the freest flow of trade and market stability. This would be achieved by increasing efforts to engage industry representatives to address issues of mutual interest at the MCC meetings, annual conference and roundtable discussions. He also reminded members that the International Grains Trade Coalition (IGTC) had made a presentation on the major issues faced by grain traders at the last MCC meeting. 23. The Secretariat would continue to focus on its core economic and statistical activities, work more closely with other international organisations, particularly AMIS, and increase its efforts to raise the organisation’s visibility adding that the May issue of the Economist had referred to IGC’s Grains and Oilseeds Index (GOI) in its section on economic and financial indicators. 24. Mr Aoyama (Japan) said that Japan supported the 2015/16 work programme proposal. They had appreciated the Secretariat’s work in 2014/15, particularly the expansion of the Daily Rice and Oilseeds Briefs and its analysis and special studies. As a grain and food importing country, Japan was interested in issues which affected grain production and food-exporting countries, e.g. export taxes, export restrictions and climate and logistics so Japan hoped that the Secretariat would continue to provide information and analysis on those issues. 25. They also welcomed expanding the GMR Markets and Trade Plus subscriber package as income from the information services contributed greatly to IGC’s budget. They thought it was important to find out if the information provided to subscribers was meeting their needs. They understood that resources were limited but asked the Secretariat to consider circulating a survey on this question to its subscribers. 26. Mr Phillips (Australia) said that Australia also appreciated the work that the Secretariat had been doing over the last few years in constrained budget situations. In future they wanted the work programme to include a matrix listing the objectives of the organisation along one axis and the functions being done to achieve them along another axis so members could see all the activities being undertaken to fulfil the objectives listed in Article 1 of the GTC. They also welcomed the addition of the new medium-term priority.

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27. Mr Richardson (Canada) supported the work programme, particularly the adherence to its core activities, its efforts to expand the supply and demand data for soyabeans and rapeseed/canola, to include area, yield and production figures for the EU member States, and its efforts to increase subscription services. Canada also welcomed the Secretariat’s efforts to engage relevant stakeholders and supported closer collaboration with both public and private stakeholders such as AMIS and the IGTC in the future. 28. Mr Toure (Côte d’Ivoire) congratulated the Secretariat on the document. He agreed with Australia’s suggestion as he thought the document in its present form was a little difficult to read. He suggested presenting it in a more visual way, e.g. as a table showing the different priority activities, the deadline, what had been done and the implementation rate for the project. 29. Mr Whitley (US) stated that the United States approved the work programme. He commended the Secretariat for adding a medium-term priority to improve links with international grains trade participants as this would help promote free flow of trade and market stability by enhancing communication between grains trade participants and member governments and raise the visibility of the IGC for international grain participants and potentially non-member governments. 30. Mr Willems (EU) also approved the work programme. They appreciated that the IGC would focus on its core business and also should continue to consider its contribution to AMIS a priority. 31. Mr Funes (Argentina) commended the Secretariat’s work and also supported Australia’s suggestion regarding presenting its activities in a matrix as this would make it easier to follow up. 32. Mr Molepo (South Africa) also supported the work programme and agreed with other members that it would be useful to have a matrix as it would provide a clearer picture of what was being done. 33. The Council approved the work programme for 2015/16 as set out in document GC41/3. (iii) GMR Markets and Trade Plus 34. Mr Cooper (Secretariat) updated members on the upgraded subscription package for subscribers to be renamed GMR Markets and Trade Plus. The package, which would be launched in July, had been expanded to better reflect the Council’s increased commodity coverage and to generate more income (document GC41/Info.4)2. Item 7. AMIS: update 35. The Chair stated that the latest developments for AMIS had already been explained under item 4 by Mr Abbassian of FAO who also served as Secretary of AMIS and Ms Giner of the OECD (documents GC41/Misc.3 and GC41/Misc.4). The next item on the agenda would be Item 9. Item 9. Trade reporting by members under Article 7 of the GTC

2 See IGC member website.

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36. Mr Kemp (Secretariat) introduced document GC41/7 which outlined the latest situation on members’ reporting of grains, rice and oilseeds trade data. Wherever possible the Secretariat used customs data submitted by individual members but they still had to subscribe to a number of private sources and he urged members to provide the required trade data to the Secretariat. There had been an improvement in reporting that year as ten members had submitted replies compared to six replies received the previous year. 37. Mr Toure (Côte d’Ivoire) wished to make a general comment on the session documents. He had received some documents in French and some in English and in future wished to receive all the documents either all in French or all in English. 38. The Executive Director stated that as the Secretariat was faced with budgetary constraints it had to limit the number of documents translated.3 39. Returning to Item 9 on trade reporting, the Chair reminded members of the importance of providing the data to the Secretariat as it would aid their work and reduce the costs of obtaining the information from other sources. Item 8. Administrative and financial matters (i) Budget and contribution proposals for 2015/16 40. The Executive Director introduced document GC41/4. Based on end-April data, the Council’s expenditure in 2014/15 was expected to be within budget and below its income. The cash balance as at 30 June 2015, excluding the accommodation reserve, was tentatively forecast to increase to £1.56m. Total expenses in 2014/15 were forecast at £1.63m which was £49,000 or 2.9% less than the previous year’s audited total of £1.68m and well within the £1.74m budget. Except for professional services, all spending items would be below the budget. 41. With regard to income, the Council’s total receipts were provisionally forecast at £1.72m, slightly less than budgeted by £14,000 or 0.8%. This was largely due to a further decrease in interest on deposits from the previous year’s budgeted amount of £19,000 to an estimated £10,000 and the likely reduction in the conference surplus from £70,000 to £60,000 due to the more expensive venue. 42. Past due contributions received had also increased from £42,000 in 2013/14 to £65,000 including a payment by Iran in January 2015 for all its arrears. Ukraine owed £104,481 including its current fiscal year contribution. Pakistan had made a partial payment in May for its 2012/13 arrears. 43. Total income is forecast to exceed total expenses in fiscal 2014/15, leading to a surplus of £93,000, although the final figure would depend on the accounts for the period to June. 44. The cash balance, excluding the accommodation reserve, was forecast to increase to £1.56m above the agreed level of £1.4m. The total cash balance, including the accommodation reserve, at the end of the current fiscal year was tentatively forecast to increase nominally to £1.65m from £1.64m as audited at the end of June 2014. 45. With regard to the draft budget for 2015/16, it was estimated that total income for the next fiscal year would decline slightly to £1.71m from the current budget of £1.74m by 1.6%

3 Three documents were translated for the session, the agenda, budget proposal and work programme.

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and total expenses would have to be reduced in parallel to achieve a balanced budget. The budget for staff expenses, which accounts for 75% of the total, was estimated to decrease by 3.4% to £1.29m. A senior economist would retire at the end of September that year and would be replaced by a more junior person. 46. Two posts, personal assistant to the Executive Director and accountant, which were currently placed in the general service category, would be reclassified as professional and higher staff to bring them into line with other international commodity organisations in the UK and to recognise their increasing responsibilities for dealing with various administrative and financial matters. 47. The realignment of members of staff would reduce total staff salaries. The aggregate salaries of PH staff and GS staff would decline from the current fiscal year’s budget of £980,700 to £926,400 for 2015/16, by some £54,000 or 5.5%. The total staff expenses were expected to decrease from the current budget of £1.33m to £1.29m, by about £46,000 or 3.4% and would be the first time that there would be a reduction in staff expenses since 2001/02. 48. The budget for accommodation, whose share of the total expenses was 16%, was estimated to be marginally higher than the budget for the current fiscal year at £274,110 as further increases were expected in building service charges and business rates (property tax), more than offsetting continued savings on office maintenance and services, and office insurance. 49. The budget for professional services was also estimated to increase from £17,000 to £31,100, mainly due to a one-off cost, estimated at £15,000, for surveyors and solicitors associated with negotiating the new office lease. 50. Total expenses were expected to decline to £1.71m, representing a reduction of £27,000 by 1.6% from the current budget of £1.74m. To balance the budget the above proposed expenditure would require a total income of £1.71m. Combined external income of interest on deposits, the sale of information services and the surplus from the conference were estimated to slightly decline by about £12,000 to £209,800 from the current year’s budget of £221,900. This was because of the reduced income from interest on deposits and the estimated decline in the surplus from the conference. 51. The Council’s cash balance stood at £1.47m, excluding the accommodation reserve, as at 30 June 2014. As a surplus of some £93,000 was envisaged at the end of June 2015, there would be a cumulative surplus of about £160,000 above the £1.4m of reserves at the end of the current fiscal year. 52. It was proposed that credit be employed again by transferring £15,000 from the cash surplus to income to make provision for the one-off cost for surveyor and solicitor fees associated with the new lease from July 2016 in accordance with Rule 29(c) of the Rules of Procedure. This would enable members’ assessed contributions to remain the same at £1.482m with a value per vote at £741 unchanged for the fourth consecutive year since 2012/13. 53. Mr Toure (Côte d’Ivoire) supported the budget and wished to congratulate the Executive Director for his management of the organisation and in particular in maintaining the contribution per vote at £741 for the fourth consecutive year. 54. Mr Karavaytsev (Russia) also wished to thank the Executive Director for keeping expenses under control and ensuring a stable income from information services which was projected to increase by 1.5% in 2015/16. The Russian Federation also supported the budget but wished to draw members’ attention to the fact that in 2015/16 the IGC

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accommodation reserve would be fully expended so it was very important to resolve the accommodation issues. 55. Mr Whitley (US) stated that the US also approved the budget and proposed member assessments for 2015/16. He added that they thought that any surpluses should either be returned to member states or put into a reserve for one-time extraordinary expenditures. 56. Mr Washimori (Japan) stated that Japan also approved the budget and wished to reiterate their comments at the Budget and Administrative Committee, that the proposed budget was below the zero nominal growth level. They appreciated the Executive Director’s and Secretariat’s efforts to reduce expenses and streamline the work. 57. Mr Willems (EU) stated that the EU also supported the budget. He thanked the Executive Director for maintaining expenditure at a zero growth level. They also supported the proposed transfer of £15,000 from the cash reserve in order to maintain contributions per vote unchanged and would not request, as they had done in the past, to increase the transfer because, as had already been mentioned by Russia, the accommodation reserve was nearly zero. 58. The Council approved the budget for 2015/16 as set out in document GC41/4. (ii) Outstanding member contributions (iii) Contribution arrears 59. The Executive Director referred members to Table 2A on past due and outstanding contributions. At the current time two members had arrears – Pakistan and Ukraine and four members had outstanding contributions for the current fiscal year. (iv) Executive Director’s contract 60. The Chair reminded members that the Executive Director’s five-year contract would end on 31 January 2016. At the Administrative Committee meeting held on 6 May the Committee had reached a consensus recommending that the Executive Director’s contract should be extended for a further two years to 31 January 2018. Mr Kitahara had agreed to the two-year extension. The Administrative Committee had reached this agreement on the understanding that all future Executive Director appointments would be for a maximum of two terms or ten years’ service. 61. Mr Toure (Côte d’Ivoire) supported the consensus reached on 6 May. He also agreed that the mandate for future Executive Directors should be limited to two terms of office of up to ten years. 62. Mr Karavaytsev (Russia) also supported the 6 May consensus regarding the two-year extension of the Executive Director’s contract and the proposal to limit the overall term for future nominations to two terms of up to ten years. 63. Mr Aoyama (Japan) stated that Japan also joined the consensus regarding the two-year extension and also supported the term limitation for future Executive Director appointments. Japan recognised that there were a number of pending issues including the medium and long-term budget, the expansion of membership and the assessment of IGC to be dealt with by the current Executive Director. 64. Ms Seain (Argentina) also supported the two-year extension and the proposal to limit the term of future Executive Directors, but wished to clarify that this should not impede amending the Rules of Procedure.

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65. Mr Phillips (Australia) stated for the record that Australia also agreed with the two-year extension of the Executive Director’s contract and the two-term limit. 66. Mr Willems (EU) also agreed to the two-year extension and a two-term limit. He echoed Argentina’s comment, adding the Administrative Committee should continue their work on amending the Rules of Procedure to stipulate the two-term limit. 67. Mr Richardson (Canada) stated for the record that Canada also supported the two-year extension for the Executive Director’s contract and the two-term limit. They agreed that they should continue discussing how the two-term limit would be implemented at the Administrative Committee meeting. 68. Mr Belabdi (Algeria) thanked the Executive Director for his management of the budget in previous years and the proposed budget for 2015/16 which they approved. Algeria also supported the two-year extension of the Executive Director’s mandate. He added that they agreed that the next Executive Director should be appointed for a five-year term renewable once. 69. Mr Whitley (US) also supported the consensus to extend the Executive Director’s contract for two years and the two-term limit for future Executive Directors. 70. Mr Rasi (Switzerland) stated for the record that Switzerland also supported the consensus with regard to the two-year extension of the Executive Director’s contract as well as the maximum two term limit for future Executive Directors. 71. The Chair confirmed that the Council had agreed to a two-year extension of the Executive Director’s contract. 72. The Executive Director thanked the Chairman and members for their support. He said that it had been an honour to serve the Council during the last nine years and that he would continue to work towards resolving the outstanding issues in the best interests of the Council and making the IGC more effective and efficient with the help of his colleagues. (v) Accommodation issues 73. The Executive Director introduced document GC41/5 which had been updated after the last Administrative Committee meeting. 74. The latest information the Secretariat had received was that Canary Wharf Management was considering taking over IGC’s and ISO’s office space when their leases expired in June 2016 as they had a requirement for more office space for their management team. 75. If this were the case, and given that IGC and ISO had security of tenure, IGC and ISO would be entitled to statutory compensation equivalent to twice the rateable value of the space, intended to be used for relocation costs. However, the organisations would likely be responsible for the dilapidation costs. It was hoped that Canary Wharf Management would inform the Secretariat of its decision by the end of June. The Secretariat would keep members updated on the latest developments. 76. Mr Toure (Côte d’Ivoire) said he had understood that after various meetings between the landlord and the surveyor, Canary Wharf was considering taking over the IGC and ISO’s office space and he asked if this was correct.

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77. The Executive Director confirmed that that was what he had been told informally, but as yet had not received anything in writing. Canary Wharf would make their decision by the end of June. 78. Mr Toure (Côte d’Ivoire) added that as there was the possibility that the landlords wanted the office space, it was important to plan ahead. 79. The Executive Director replied that even if the landlord wished to occupy the office space, discussions with them would continue as they would be asked to provide alternative office space in the area. As the process had only just begun, he asked members to wait until they had received a formal reply from the landlords. They would be kept posted on any new developments. 80. Mr Rasi (Switzerland) said that he agreed with Côte d’Ivoire as it was potentially a very important topic which might need a quick solution and guidance from the Council if new offices were required. He asked when the Secretariat would have to leave the office. 81. The Executive Director replied that the lease would expire at the end of June 2016. 82. Mr Whitley (US) stated that the United States supported IGC’s prompt engagement with the landlord and the surveyor to discuss and evaluate leasing options. Furthermore, they encouraged the Executive Director to continue to negotiate for the best deal possible. 83. Mr Rasi (Switzerland) added that the end of June was not that far away when it came to finding new accommodation at a good price. The less time available would make it more difficult to negotiate with other potential landlords. With that in mind, he encouraged the Secretariat to work with Canary Wharf Management to find out as soon as possible when they would potentially have to leave the premises. 84. Ms Seain (Argentina) agreed that Argentina would also like to know as soon as possible if the landlords were going to renegotiate the lease so that members could decide what to do. They also wanted Mr. Pentecost to provide more information on the compensation payable if the lease was not renewed and to identify new offices which could be suitable for IGC and ISO. 85. Mr Phillips (Australia) wished to know what the rateable value of IGC’s office space was. He added that the landlords might be using a negotiating tactic to exact a higher rent. He also agreed with the Executive Director that members should wait for a definitive answer from the landlords. 86. Mr Willems (EU) reiterated that the EU’s position had always been that ISO and IGC should negotiate together. However, like Switzerland he was a little concerned as June 2016 was not that far away. The next Council session would be in December so if the lease could be renegotiated, a Council decision could be made in December, but if the Secretariat had to change its location, it would probably be more difficult to reach a consensus in December. 87. In answer to Australia’s question, the Executive Director stated that the Secretariat did not have a definition of the rateable value. For example, if the current annual rent of £213,750 was used, multiplying it by 2 would equal £427,500. However, dilapidation costs at a minimum of £20 per square foot would probably have to be paid. Based on IGC’s office space of 5,700 square feet dilapidation costs would be about £114,000. The IGC would also have to pay for fitting out the new premises at a cost of £50-£100 per square foot i.e. between £285,000 to £570,000. This would average at about £427,500 which would be similar to twice the rateable value of the office space, so if statutory compensation were

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received, it would be offset by the dilapidation costs and the costs for fitting out new premises. 88. The Secretariat had been acting on the timeframe suggested by the surveyor and solicitor. The ISO did not want to be seen to be too keen to renew the current lease because, as pointed out by Australia, the landlord might want to raise the rent and if the organisations were shown to be too willing to stay in the current premises, the landlord could try to raise the rent or give a shorter rent-free period. The IGC was not acting alone, but with the ISO on the timeframe suggested by the surveyor and the solicitor. He reiterated that members should wait until they received a formal reply from the landlords. 89. The Chair said that the Executive Director would prepare a report by the end of June to inform members of the latest developments. 90. Mr Toure (Côte d’Ivoire) asked what the process would be between the end of June and the next Council Session in December if the landlord would not renew the lease. 91. The Executive Director replied that if it were considered necessary the Chair could convene an extraordinary meeting of the Administrative Committee. 92. Mr Funes (Argentina) agreed with other members that it was an urgent issue and they also wished to receive the official reply from the landlords as soon as possible. They supported having an extraordinary Administrative Committee meeting but for it to be fruitful, the Secretariat would also have to put forward the different options available at the meeting. 93. Mr Phillips (Australia) asked under UK law, how much notice the landlord needed to give tenants if it wanted to take over the space? 94. The Executive Director informed members as the IGC had security of tenure, once it served notice on the landlord that it wished to stay, the landlord would have to reply within two months. The surveyor had contacted the landlord in April so that was why he was expecting to receive the reply from the landlord by the end of June. 95. The Chair recapitulated that the Executive Director would provide members with an update on the latest developments within a month4. 96. The Executive Director added that a few years previously the landlord had suggested that the IGC move to another one of their buildings on the estate, but this had been declined as the Secretariat wished to stay where they were. It was possible that a similar offer could be made, but if not, the Council would have to explore options such as moving to another area. However, the negotiations were only just beginning so it was too early to speculate. (vi) Assessment of the IGC 97. The Executive Director informed the Council that eleven members had replied to the questionnaire to evaluate members’ views on the functioning of the IGC5 and whether they supported a detailed assessment of the organisation. 98. Most members agreed that the IGC’s current activities were generally meeting the stated objectives and that the activities listed in the last work programme were appropriate. However, their views were divided on the need for a vision statement and on conducting a detailed assessment of the IGC at the current time. Further discussion was required and it

4 On 1 July, IGC and ISO were informed by Mr. Pentecost that the landlord had still not made a decision but they hoped to be able to give an answer in July. 5 See document GEN(14/15)5(Rev.1).

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was proposed that the Administrative Committee should continue to discuss the item at their next meeting in October. He asked members who had not yet completed the questionnaire to do so as soon as possible so that their views could also be taken into consideration. 99. The Chairman stated that discussions would continue at the next Administrative Committee meeting. (vii) Staff regulations and rules: retirement age 100. The Executive Director referred members to document GC41/6 which proposed amending IGC’s Staff Regulations and Rules to formalize the retirement age at 65 and bring them in line with staff rules in other UK international commodity organisations which all stipulated a retirement age. The proposal was directly linked to the budget proposal for 2015/16 which the Council had just approved. He added that under the headquarters agreement between the UK government and the Council, the IGC was immune from UK jurisdiction and was therefore not subject to UK employment laws. He asked the Council to consider the proposal and approve the amendment with immediate effect. 101. Mr Richardson (Canada) stated for the record, that Canada did not have a position on the item at that time and would abstain. 102. Mr Whitley (US) stated that the United States supported the amendments to the staff rules as highlighted in document GC41/6. 103. Mr Washimori (Japan) said that in the light of IGC’s past practice and the situation in other international commodity organisations in London they supported the proposal. 104. Mr Willems (EU) stated that the EU could support the amendment if it was standard UN practice. 105. Mr Phillips (Australia) stated that like Canada they would abstain on the issue. While they were a member of the UN and supported its rules there was no mandatory retirement age under Australian law. 106. Mr Toure (Côte d’Ivoire) said that he was concerned after hearing Canada and Australia’s comments as he had thought that the Administrative Committee had reached a consensus on the issue, but it seemed that that was not the case. 107. The Chair stated that he understood that everybody was in agreement to formalize the retirement age at 65 and this would come into immediate effect. 108. Mr Funes (Argentina) declared that in view of members’ previous comments, Argentina had not yet reached a position. Responding to Côte d’Ivoire’s comments, they understood that a consensus had not been reached at the Administrative Committee meeting and that the item was still subject to discussion. 109. Mr Toure (Côte d’Ivoire) said that it seemed that the proposal would have budgetary implications and it was therefore important to reach a consensus at that time as it would be difficult to do so later. 110. The Executive Director clarified that Canada and Australia had abstained meaning they would not block a consensus. He added that as he had explained previously, the budget proposal had been drafted based on members approving the item on that day, with immediate effect.

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111. Mr Richardson (Canada) confirmed that Canada was abstaining but was not blocking the consensus. 112. Mr Toure (Côte d’Ivoire) wished to know if it was essential to adopt the proposal. 113. The Chair answered that the budget had been based on the adoption of the issue. The item was part of the budget. 114. Mr Toure (Côte d’Ivoire) said that he was prepared to approve the document if it was in keeping with the UN rules. 115. The Executive Director explained that in the UN there were two retirement ages depending on when staff joined. For new recruits who joined on or after 1 January 2014 it was 65 and was 62 for those who joined before that date. He had proposed the retirement age of 65 as the IGC already had a member of staff who was 64 so could not introduce a retirement age of 62. Also, 65 was the stipulated retirement age in the staff rules of all other UK based international commodity organisations. He confirmed that the proposal complied with the UN’s rules on retirement. 116. Mr Molepo (South Africa) stated that following the Executive Director’s clarification, South Africa would support the proposal. 117. Mr Funes (Argentina) stated for the record that Argentina also wished to abstain. 118. The Chair confirmed that members had agreed on the proposal and it would come into immediate effect. Item 10. Grains Trade Convention, 1995 (GTC) (i) Membership 119. The Executive Director informed the Council that all IGC members except Iraq had deposited their instruments of accession and he asked them to grant Iraq an extension of time to 30 June 2016 in which to do so. 120. The Council agreed to grant Iraq an extension of time to 30 June 2016 in which to deposit its instrument of accession. (ii) Future action: Extension of the GTC 121. The Executive Director informed members that at the 40thth Session in December 2014 the Council had agreed in principle that the Grains Trade Convention, 1995 (GTC), which was due to expire on 30 June 2015, should be extended for two years until 2017, subject to confirmation at the present session. 122. The following members supported a two-year extension of the GTC: Mr Funes (Argentina), Mr Richardson (Canada), Mr Toure (Côte d’Ivoire), Mr Willems (EU), Mr Washimori (Japan), Mr Karavaytsev (Russia), Mr Molepo (South Africa), Ms Roux (Switzerland) and Mr Whitley (US). 123. The Chair stated that the Council agreed that the GTC should be extended for two years until 30 June 2017. (iii) Listing of members under Article 12: exporting and importing members

GC41/13 Restricted

13

124. The Executive Director introduced document GC41/8, which listed exporting and importing members. No member had requested to be transferred between the lists. (iv) Votes of members under Articles 11 and 12 125. The Executive Director introduced document GC41/9 showing members’ votes under Articles 11 and 12 of the GTC. (v) Elections for 2015/16 126. The Council appointed Ms Carla Seain, Under-Secretary for Political Coordination, Ministry of Agriculture, Livestock and Fisheries, Argentina, Chairman of the Council for 2015/16 The Council appointed Mr Aly Toure, Permanent Representative of Côte d'Ivoire to International Commodity Organizations, London, Vice-Chairman of the Council for 2015/16. The members of the Administrative Committee6 for 2015/16 would be: Exporters: Argentina, Australia, Canada, EU, India, Russia, Ukraine and the US. Importers: Cuba, Egypt, Japan, Kenya, Republic of Korea, Saudi Arabia, South Africa and Switzerland. The members of the Executive Committee for 2015/16 would be: Exporters: Argentina, Australia, Canada, EU, Russia and the US. Importers: Cuba, Egypt, Japan, Kenya, Republic of Korea, Morocco, South Africa and Switzerland. 127. Ms Seain (Argentina) thanked the Council for their trust. She also thanked Saudi Arabia and congratulated them for all their work during their Chairmanship that year. Argentina had been impressed with the excellent organisation of the meetings held in Jeddah. 128. It was an honour for Argentina to be elected Chair of the organisation and she invited members to contact her if they had any suggestions or concerns. Important challenges lay ahead with various issues to be resolved and she counted on members’ proactive support. 129. She also took the opportunity to invite members to the 42nd Session of the Council and International Grains Forum in Argentina on 30 November and 1 December. 130. Mr Toure (Côte d’Ivoire) congratulated Ms. Seain on her appointment and thanked members for appointing him Vice-Chairman. As he was in London and Ms. Seain was based in Argentina, he was at her disposal for any assistance she might require.

6 Rule 8(g) of the GTC provides that the Chairman and Vice-Chairman of the Council may attend any meeting of any Committee of the Council and take part in the proceedings without vote. Côte d'Ivoire may therefore attend any meeting as Vice-Chairman.

GC41/13 Restricted

14

(vi) Appointment of future Executive Directors 131. The Chair informed members that at the last Administrative Committee meeting members had agreed that all future Executive Director appointments would be for a maximum of two terms, up to ten years in total, and this would be reflected in the amended Rules of Procedure. The discussion on this item would continue at the next Administrative Committee meeting and members would be updated on the outcome at the next Council Session in December. Item 11. IGC Grains Conference 2015 132. The Executive Director outlined the next day’s conference programme which included sessions on supply and demand outlook, environmental issues and their potential market impact, trade and logistics and a focus on the Black Sea region. Item 12. Arrangements for the 42nd Council Session and International Grains Forum in Buenos Aires, Argentina 133. Ms Seain (Argentina) reiterated that the 42nd Council Session would be held on 30 November in Buenos Aires, either at the Ministry of Agriculture or the Foreign Office. The International Grains Forum would be held on 1 December and they were currently working with the grains trade to organize the event. They were also looking into the possibility of the private sector arranging a trip to Rosario, the main grain export port in Argentina, although the trip was still pending confirmation. Item 13. Schedule of meetings 134. The Executive Director introduced the schedule of meetings (document GC41/11). He informed members that as yet the Secretariat had not secured a venue for the 2016 conference so it was possible that the dates for the Council Session and conference might have to be moved to the previous week. If that were the case, the Administrative Committee meeting scheduled on Wednesday 11 May would also be changed to Tuesday 10 May. Members would be informed of the final dates as soon as a venue had been confirmed. 135. The Council approved the schedule of meetings as set out in document GC41/11. Item 14. Credentials Committee report 136. The Executive Director introduced the Report of the Credentials Committee, as set out in document GC41/12. There being no comments it was deemed to be approved by the Council.

GC41/13 Restricted

15

Item 15. Other business 137. The Executive Director invited members to consider inviting the International Grain Trade Coalition (IGTC)7 to future IGC meetings e.g. to Council sessions and the Market Conditions Committee meetings in an observer capacity. 138. This was in line with the Work Programme for 2015/16 where the Secretariat has suggested adding a new medium-term priority to “foster improved links with participants in international grains trade”, which was added to take into consideration members’ replies to the questionnaire on the functioning of the IGC. 139. Having them represented as an observer would allow members and the Secretariat to discuss main trade issues directly with the representatives of relevant industry trade organizations on a more regular basis and would be in line with the Council’s objectives under Article1 of the Convention. 140. Representatives from the U.S. Wheat Associates and the U.S. Soybean Export Council, both of which were members of IGTC, were attending the 41st Council Session in the capacity of observers of the U.S. delegation. Also industry organizations formed part of the Australian and South African delegations. 141. The proposal would be put on the agenda for initial consideration at the next Administrative Committee meeting in October. 142. Mr Whitley (US) said that the United States welcomed the opportunity to consider expanding the scope of observers from international organisations at the next Administrative Committee meeting. Inviting the IGTC as an observer would be one way in which the IGC could work to achieve the new medium-term priority of fostering improved linkages with international grains trade participants. 143. Mr Richardson (Canada) said that Canada also fully supported putting the item on the agenda for the next Administrative Committee and furthering cooperation with relevant stakeholders such as the IGTC. They thought it was within the scope of the Convention. 144. The Chair stated that the Executive Director’s proposal had been agreed by members. 145. There being no other comments, the Chair thanked everyone and closed the meeting.

7 The IGTC is a coalition of 22 national and international non-profit trade associations and councils whose purpose is to provide advice to governments from a global perspective on the commercial requirements and economics of the world’s food, feed and processing industries.

GC41/Info.2 Restricted

ENGLISH ONLY

10 June 2015

Agenda item 2: Charts for grain market discussions

1. 2015/16 Wheat production is forecast 1% lower y/y, second to the record of 2014/15

2. Wheat: Southern hemisphere 2015/16 aggregate output projected 5% higher y/y, on better prospects in Australia and Brazil

3. US 2015/16 maize production is placed 4% lower y/y, based on trend yields and reduced plantings

4. Large supplies weigh on world grains, rice and oilseeds prices

5. Total Grains: Supply & Demand

6. Wheat: 15/16 supplies could be a new record, as large opening stocks outweigh lower output

7. Wheat: Global end-15/16 stocks unchanged y/y, with the ratio of stocks-to-use broadly stable

8. Wheat: Strong dollar and occasional rallies make it a difficult year for US exporters

9. Wheat: only a modest fall in trade forecast in 15/16, but volumes could be higher than expected

10. Wheat: The EU forecast to be the largest exporter again in 2015/16

11. Industrial use of grains to grow by 1% y/y in 15/16, led by starch and brewing, ethanol steady

12. Durum wheat: production to recover but supplies likely to remain tight

13. Barley: Better crop and pasture prospects in importing countries will shape the market in 15/16

14. Barley: Better crop and pasture prospects in importing countries will shape the market in 15/16

15. Maize: With a few offsetting changes, world 2015/16 feed demand forecast to be steady

16. Maize: Growth in industrial use has slowed, particularly in the US

17. Maize: US availabilities to remain comfortable in 2015/16

18. Maize: Long run trends in China’s supply and demand

19. Maize: 2015/16 (Jul/Jun) trade forecast to edge higher, lifted in part by increased EU imports

20. Maize: World stocks forecast to be higher than average at the end of 2015/16

21. Maize: Export prices are struggling under the weight of comfortable world supplies

22. Sorghum: World trade now dominated by China

23. Declines in export prices of oilseeds and products steep and broad based

24. Soyabeans: Markets plunge under heavy supply-side pressure

25. Soyabeans: Projections for 2015/16 point to a further increase in global inventories…

26. …almost entirely on accumulation in major exporters, especially the US

27. Soyabeans: Chinese imports progress at a heavily reduced pace in 2014/15

28. Soyabeans: Trade to expand to new record in 2015/16, but growth slower than in the past

29. Soyabeans: Marginal changes in export volumes expected as the US and Brazil compete for top spot

30. Rapeseed/canola: Carryovers to contract sharply in 2015/16 as production declines

31. Rapeseed/canola: Trade projected at five-year low in 2015/16

32. Rice: A race to the bottom in a bid to stay competitive?

33. Rice: Major exporters stocks to contract again in 2015/16, to an eight-year low

34. Rice: Trade depends on demand from buyers in sub-Saharan Africa and the Far East

35. An increase in new-build orders for 2015-2017 keeps pressure on rates despite demolition rise

36. Surplus tonnage and insufficient demand continue to weigh on the dry bulk freight market

37. Summary of main market points


1

1.

The world wheat production in 2015/16 is forecast at 715m, 1% lower than the 2014/15 record.

Total projected harvested area is placed marginally lower y/y, at 222.8m ha: increased plantings, predicted in the CIS and North America are expected to be more than offset by reductions in South America and India.

2.

The aggregate output in the four major producing countries is forecast 5% higher than in 2014/15, at about 48m t, 4% above the five-year average.

Larger crops are expected in Australia and Brazil, while production in Argentina and South Africa is projected lower.

3.

The harvested area is forecast to decrease by 1.3%, mostly due to reduced profit margins.

Based on a trend yield of 10.0 t/ha (10.7 t/ha), production is placed at 332.0m t, down 8% from the record of 2014/15.

4.

Record grains production in 2014/15.

Highest beginning stocks in 13 years contribute to a 3% rise in total supplies, to over 2.4bn t for the first time.

Grains consumption in 2014/15 at a new peak, led by higher feed use.

End-2014/15 stocks to be the largest in nearly 30-years.

Total grains trade in 2014/15 (Jul/Jun) to be a record.

Heavy supplies and mostly good prospects for 2015 production pressures prices, the IGC GOI down by one-quarter y/y.


2

5.

At 1,968m t, world total grains production in 2015/16 is projected 2% lower y/y.

High stocks to almost offset the fall in output.

End 2015/16 stocks to decline, but stay comfortable.

6.

The small decline in the projected global harvest is seen being more than outweighed by ample stocks at the start of the season, potentially lifting total supply for 2015/16 to a new record.

Food use growth is projected to broadly match the long-term trend.

Feeding of wheat will likely face continued competition, not only from other grains, but also from high-protein ingredients such as soyabean meal.

7.

The global wheat supply and demand is projected to be in broad balance during 2015/16.

End stocks forecast to be steady, at around 200m t.

World stocks to use roughly unchanged y/y at the end of 2015/16, at around 28%.

Inventories in the major exporters at around 67m t, fractionally higher than the five-year average.

8.

Global wheat export prices pressured by large world supplies and strong export competition.

The introduction of Russia’s export tax contributed to some mid-winter upward price pressure, but concerns soon dissipated as export surpluses elsewhere remained good, including in the EU.

The competitiveness EU supplies was aided by local currency weakness against the US dollar.

The strong dollar made it more difficult for US exporters to compete for business.

Higher US prices in March were triggered by concerns about drought in winter wheat regions, while excessive rains contributed to a more recent rally.


3

9.

World wheat trade is forecast to be down by 3% y/y in 2015/16, although the projected total of 149m t would still be the third largest ever.

Most of the decline is in Europe, Near East Asia and North Africa, where better local harvests are expected to restrict demand.

Recent signs that harvests in some parts of North Africa may be disappointing could boost imports, especially in Algeria and Tunisia.

India is reported to have secured some cargoes of Australian wheat recently to supplement poor quality in some of the harvest following untimely rains.

10.

EU exports may not be as large as the previous year’s anticipated record, but could be the world’s largest exporter again in 2015/16.

Russia is due to introduce a new methodology for calculating export taxes from 1 July, but duties would be small at current prices and exchange rates.

But Russia’s export availabilities in 2015/16 may not be as high as in the past year.

11.

At around 326m t, industrial use of grains is expected to be about 1% higher y/y, led by starch and brewing.

Ethanol to grow only slowly, contained by slowing demand growth in the US, weak crude oil prices and poor industry profitability in some countries.

12.

Low production in most regions in 2014 drove global import needs to a record and pushed up prices.

The market has softened since November on an expected rebound in the 2015 harvest.

Low opening stocks will keep supplies relatively tight in 2015/16.


4

13.

Stronger production in importing countries and lower feed barley demand, in importing countries, will shape markets in 2015/16.

Better harvests and pastures are expected to reduce import needs in Near East Asia and North Africa. But China’s imports are projected to remain strong in the year ahead

14.

Consumption is projected to fall, mainly on improved pasture availability in Near East Asia and North Africa. Ukraine’s feed use is also likely to fall, owing to tight supplies.

A record trade volume is expected in 2014/15.

In 2015/16, import needs in Near East Asia and North Africa are expected to fall.

15.

While rising meat consumption should underpin increased feed use in many countries, smaller crops may contain demand in the US, EU and CIS.

Outbreaks of animal diseases, including avian influenza in the US, need to be watched.

16.

Growth in US industrial use has slowed, but remains the key component of domestic demand.

With US fuel ethanol consumption capped by E10 “blend wall” constraints, EPA recently proposed to lower mandated biofuel blending.

New subsidies for processors in China should support 15/16 consumption.

World starch demand is increasing on a gradual pickup in economic activity.


5

17.

Despite a smaller US crop, high carryovers will lift total supplies to above-average levels.

Total disappearance is also expected to rise, led by y/y increases in industrial use and exports.

While increased animal numbers should support feed/residual use, consumption seen down due to a potential drop in output.

18.

China’s supplies have risen quite strongly and are now at record levels.

Increases in area and yields have resulted in a jump in production.

Imports remain comparatively small.

With growth in demand lagging supply gains, stocks are thought to be close to record highs.

19.

Supported by rising feed demand, world trade is now well established above 100m t.

Recent import growth in Mexico, Colombia, Venezuela, Iran, China, Indonesia, Algeria and Egypt.

EU imports fluctuate from one year to the next, but needs are not always a direct function of the crop size in a particular season.

20.

End 2015/16 closing stocks are forecast to dip slightly.

However, inventories are forecast to be well above recent averages.


6

21.

With supplies more than sufficient to meet demand, world export prices are down by more than 20% y/y

With large South American supplies coming to market, deferred prices are also low

22.

Around three-quarters of all sorghum shipments are now destined for China.

Prices remain competitive; sorghum is GM free and can be imported outside of the TRQ system.

Sorghum is displacing domestic and imported maize from local feed formulations.

While recent stricter customs checks have resulted in some rejections, trade flows so far unaffected.

23.

Markets for oilseeds and products have fallen sharply at all major origins.

24.

Soyabean export prices, as shown by the IGC’s daily soyabeans index, have fallen steeply in the past year.

Declines sharper than for the broader grains and oilseeds complex.


7

25.

2014/15 is shaping up as a year of records for production, consumption, trade and stocks.

Plantings in the US, Argentina and Brazil are likely to increase in 2015/16, with world area seen up by just over 1% y/y.

However, assuming some retreat in average yields, production is projected to decline.

At 316m t, the global outturn would be just 4m t smaller y/y and the second largest ever.

The increase in world supplies is expected to exceed that of use, resulting in bigger stocks.

Global trade is seen up 4% y/y, to a peak of 123m t.

26.

US end-season stocks seen rising almost fourfold in 2014/15 on a huge crop.

With a big outturn expected in 2015/16, further accumulation is likely, to a nine-year peak.

In Brazil, carryovers are expected to expand, while Argentina’s inventories are likely to stay high on continued sluggish famer selling and economic worries.

27.

China’s imports of soyabeans have progressed at a sluggish pace in 2014/15.

Crush margins for imported soyabeans remain weak and barely positive.

China has become an important exporter of soyabean meal, reflecting ample supplies.

However, big arrivals from South America are expected, with total imports seen up 5% y/y.

28.

Trade is anticipated to expand further in 2015/16, to a new record, on larger deliveries to China, especially as domestic output trends lower.


8

29.

Argentina’s soyabean exports are relatively small when compared to those of the US and Brazil, but it is the dominant exporter of soyabean products.

Reflecting the quick expansion of world trade, shipments by the US and Brazil have posted strong growth in the past decade.

US exports are expected to fall slightly in 2015/16, but could be more than offset by larger sales by Brazil.

30.

In 2014/15, production matched the previous year’s peak but, owing to expanding use, stocks are expected to fall.

Trade to fall significantly in 2014/15, to 13.9m t, reflecting a marked drop in EU imports.

In 2015/16, output is projected to fall by 5%, to a three-year low, including smaller crops in the EU and Canada.

A steep fall in world stocks is expected, including a further drop in the major exporters.

31.

Trade in 2015/16 is projected to drop for the second consecutive year.

A much smaller crop is likely to boost EU import demand, but this increase will be outweighed by a marked contraction in deliveries to China.

32.

Declines in white rice prices very pronounced in Vietnam amid efforts to stimulate demand.

The left hand visual shows that the decline in world rice prices has been relatively smaller than for other commodities.


9

33.

Major exporters’ stocks are projected to fall in 2015/16, led by Thailand and India.

The Thai government appears keen to offload reserves. Clearly, stocks will likely be channelled to the world market and this could be significantly bearish.

After recently suspending sales on concerns about low prices, the government is now looking to sell 2m t of reserves in the next two months.

34.

Shipments to African and Asian markets are central in shaping world trade.

Due to competitively priced supplies, exports to those regions are expected to remain high, with world trade at close to 42m t in 2015 and 2016.

35.

Orders for new ships have declined since the peak of 2010-2011, which was attributed to a sharp increase in dry bulk freight rates in 2007/ 2008.

In 2015, the volume of deliveries is placed at about 60m t deadweight, one-quarter up from last year, but only about a half of the 2011 record.

Overall, during the period 2015 – 2017 about 140m t deadweight of new fleet capacity will enter the dry bulk freight market, representing 19% of the fleet’s capacity of about 740m t dwt at the beginning of 2015.

However, the impact of this increase could be partly offset by increased demolition, which is stimulated by continuing weak freight market conditions and regulatory pressures, including carbon emission requirements. This year the total could reach 25 m, double the volume of the previous year.


10

36.

Freight rates in the grains-carrying market sectors remained under pressure due to surplus tonnage and slowing chartering activity.

Overall, the average of the Baltic Indices of the three grains-carrying sectors fell by 29% y/y, while the Baltic Dry Index, which also includes Capesize rates, plummeted by 39%.

In the near-term, rates are expected to remain flat through the summer months, but the futures market points to some recovery in rates in the second half of 2015, on hopes for increased demolition and fertilizer demand to bolster the market.

37.

41ST SESSION GC41/11 Restricted (8 June 2015) 10 July 2015

Agenda item 13: Schedule of meetings

2015 11 September (Friday) Market Conditions Committee 20 October (Tuesday) Administrative Committee 16-17 November 6th Session of the Food Assistance Committee and (Monday & Tuesday) informal meeting 30 November (Monday) International Grains Council – 42nd Session, Buenos Aires, Argentina 1 December (Tuesday) International Grains Forum, Buenos Aires, Argentina 2016 8 March (Tuesday) Market Conditions Committee 13 April (Wednesday) Budget Committee 11 May (Wednesday) Administrative Committee 19-20 May 7th Session of the Food Assistance Committee and (Thursday & Friday) informal meeting (tbc) 13 June (Monday) International Grains Council – 43rd Session 14 June (Tuesday) 25th IGC Grains Conference

41ST SESSION GC41/12 Restricted (8 June 2015) 8 June 2015

Agenda item 14: Credentials Committee report

REPORT OF THE CREDENTIALS COMMITTEE TO THE 41st SESSION OF

THE INTERNATIONAL GRAINS COUNCIL

The Credentials Committee consists of representatives of Argentina, Egypt (Arab Republic of), Russian Federation, Switzerland and the United States of America. Its report on the credentials of the 41st Session of the International Grains Council is as follows: (a) The following have deposited credentials and registered attendance: Algeria, Argentina, Australia, Canada, Côte d’Ivoire, Cuba, Egypt, European Union, India, Japan, Kazakhstan, Korea (Rep.), Norway, Russian Federation, Saudi Arabia, South Africa, Switzerland, Ukraine, United States. (b) The following have neither deposited credentials nor registered attendance: Iran, Iraq, Kenya, Morocco, Pakistan, Tunisia, Turkey, Vatican City. (c) The following international organisations have deposited credentials and registered

attendance: Food and Agriculture Organization of the United Nations (FAO), Organization for Economic Co-operation and Development (OECD), World Food Programme (WFP). (d) The following non-members have deposited credentials and registered attendance as

observers: Brazil, China, Oman, Taipei (Chinese) Separate Customs Territory.

41ST SESSION GC41/Misc.1(Rev.) Restricted (8 June 2015) 10 July 2015

DOCUMENTS FOR THE SESSION

Document Subject Agenda Item no

GC41/1 Arrangements and draft agenda 1

GC41/2 National trade-related and other policy developments 3

GC41/3 Programme of work 6(i)&(ii)

GC41/4 Budget and contribution proposals for 2015/16 8(i)

GC41/5 Accommodation issues 8(v)

GC41/6 Staff regulation and rules: retirement age 8(vii)

GC41/7 Reporting by members under Article 7 of the GTC 9

GC41/8 Listing of members under Article 12:

exporting and importing members

10(iii)

GC41/9 Votes of members under Articles 11 and 12 10(iv)

GC41/10 Elections for 2015/16 10(v)

GC41/11* Schedule of meetings 13

GC41/12* Credentials Committee report 14

GC41/13 Summary Record of the Session

GC41/Misc.1(Rev.)* Documents for the Session

GC41/Misc.2* List of participants

GC41/Misc.3 Statement by the FAO 4

GC41/Misc.4 Statement by the OECD 4

GC41/Info.1 Industrial uses of grain – latest estimates 2

GC41/Info.2* Charts for market discussions 2

GC41/Info.3** The policy and outlook of the grain trade in Taiwan

GC41/Info.4*** GMR Markets and Trade Plus: update on upgraded package to subscribers

6(iii)

GMR 455 Grain Market Report 2

PR(IGC June 2015)* IGC Press Release * Attached to the Summary Record ** Document provided by observer from Taipei (Chinese) Separate Customs Territory *** Web only

INTERNATIONAL GRAINS COUNCIL GC41/Misc.2 Restricted 8 June 2015


41st Session

8 June 2015

London

LIST OF PARTICIPANTS

Chairman 2014/15 Mr. Abdulrahman Al Ruwaitie (Saudi Arabia) Vice-Chairman 2014/15 Ms Carla Seain (Argentina)

1

IGC: 41st SESSION

MEMBER COUNTRIES

ALGERIA Delegates Mr Mohamed Belabdi, General Director, Algerian Interprofessional Office of Cereals (OAIC), Algiers

Mr Hakim Eddine Chergui, Director of Foreign Trade,

Algerian Interprofessional Office of Cereals (OAIC), Algiers

Mr Youcef Redjem-Khodja, Director of Regulation and

Development of Agricultural Production, Ministry of Agriculture and Rural Development, Algiers

Mrs. Wahiba Merrouche, Assistant to General Director, Algerian Interprofessional Office of Cereals (OAIC), Algiers

ARGENTINA Delegates Ms Carla Seain, Under-Secretary for Political

Coordination, Ministry of Agriculture, Livestock and Fisheries, Buenos Aires

Mr Maximiliano Moreno, Director of Multilateral

Negotiations, Ministry of Agriculture, Livestock and Fisheries, Buenos Aires

Mr Gaston Maria Funes, Minister Counsellor, Agricultural

Affairs, Embassy of Argentina to the EU, Brussels Mr. Nicolas Rebok, Counsellor, Argentine Embassy,

London AUSTRALIA Delegates Mr Russell Phillips, Minister-Counsellor (Agriculture),

Australian Embassy to Belgium and Luxembourg and Mission to the EU, Brussels

Mr. Tony Russell, Executive Manager, Grains Industry

Market Access Forum, Camberwell North, Victoria Mr. Barry Large, Director, Grain Producers Australia,

Canberra CANADA Delegates Mr Tony McDougall, Deputy Director, Grains and Oilseeds

Division, Market and Industry Services Branch, Agriculture and Agri-Food Canada, Ottawa

Mr. Mark Richardson, Counsellor (Commercial), Trade

Commissioner, High Commission of Canada, London

2

CÔTE D’IVOIRE Delegates Mr Aly Toure, Permanent Representative of Côte d'Ivoire to International Commodity Organizations, London

Ms. Sylvie Koffi, Counsellor, Permanent Representative of

Côte d'Ivoire to International Commodity Organizations, London

CUBA Delegates Mrs Teresita Vicente, Charge D’Affaires a.i., Embassy of

the Republic of Cuba, London

Mrs Olena Navas, Economic and Commercial Counsellor, Embassy of the Republic of Cuba, London

Mr. Alejandro Mustelier, Assessor, President of Alimport, Havanna

EGYPT Delegate Mr. Mohamed Ibrahim, First Secretary, Embassy of the

Arab Republic of Egypt, London EUROPEAN UNION

European Commission

Delegate Mr Eric Willems, Deputy Head of Unit, Arable crops, sugar, fibre plants, animal feed, DG for Agriculture and Rural Development, European Commission, Brussels

Finland Delegate Mr Jukka Virolainen, Senior Officer, Ministry of Agriculture

and Forestry, Helsinki Germany Delegate Dr. Carlo Prinz, Federal Ministry of Food and Agriculture,

Bonn Italy Delegate Ms Laura Albanese, Economic Attaché, Economic

Department, Italian Embassy, London Latvia

Delegate Mr. Karlis, Luks, Senior Officer, Division of Common Market Organisation, Market and Direct Support Department, Ministry of Agriculture, Riga

Netherlands Delegate Mr. Karel van Bommel, Senior Policy Officer, Ministry of

Economic Affairs, The Hague Poland Delegate Ms Daria de Leon-Linkiewicz, Arable Crops Specialist,

Ministry of Agriculture and Rural Development, Warsaw Spain Delegate Mr. Juan Carlos Marcos, Technical Counsellor, Deputy

Head of Arable Crops Unit, Ministry of Agriculture, Food and Environment, Madrid

UK Delegate Mr Darren Stretton, Cereals Policy Adviser, Cereals Team,

Crops & Horticulture Policy, Department for Environment, Food and Rural Affairs (DEFRA), London

3

INDIA Delegate Mr. P. K. Sahu, Attaché (Commerce), High Commission of India, London

JAPAN Delegates Mr. Shigetoshi Aoyama, Director for International

Organisations, International Affairs Department, Minister’s Secretariat, Ministry of Agriculture, Forestry and Fisheries (MAFF), Tokyo

Mr Ryota Washimori, Researcher, Economic Security

Division, Economic Affairs Bureau, Ministry of Foreign Affairs, (MOFA), Tokyo

Mr. Junichiro Yamakuchi, Counsellor, Embassy of

Japan, London KAZAKHSTAN Delegates Mr. Askhat Shabarov, Counsellor, Embassy of

Kazakhstan, London KOREA (REP OF) Delegate Mr. Areum Song, 2nd Secretary, Embassy of the

Republic of Korea NORWAY Delegates Mr Sigurd-Lars Aspesletten, Policy Director, Norwegian

Agriculture Agency, Oslo Ms Julie Kilde Mjelva, Higher Executive Officer

Norwegian Agriculture Agency, Oslo

Mr. Aslak Berg, Adviser, Norwegian Agriculture Agency, Oslo

RUSSIAN FEDERATION

Delegates Mr Alexander Karavaytsev, Senior Economic Adviser, Russian Trade Delegation in the UK, London

Mr. Vladimir Derbensky, Agricultural Attaché, Embassy of the Russian Federation in the UK, London

SAUDI ARABIA Delegate Mr. Abdulrahman Al Ruwaitie Grain Silos & Flour Mills

Organization (GSFMO), Riyadh SOUTH AFRICA Delegates Mr Thapsana Molepo, Counsellor (Agriculture), South

African Embassy and Mission to the EU, Brussels Mr. Dirk Kok, Manager, Operational Services, Animal

Feed Manufacturers Association, Centurion

4

SWITZERLAND Delegates Mrs. Corinne Roux, Advisor, International Trade Policy

Unit, Federal Office for Agriculture (FOAG), Bern

Mr Conradin Rasi, 1st Secretary, Deputy Head of the Economic, Finance, Science and Innovation Section, Embassy of Switzerland, London

UKRAINE Delegate Mr. Volodymyr Khomanets, Minister-Counsellor,

Embassy of Ukraine, London UNITED STATES OF AMERICA

Delegate

Mr. Daniel Whitley, Deputy Administrator, Office of Global Analysis, Foreign Agricultural Service, U.S. Department of Agriculture, Washington

Advisors Mr. Steve Knight, Agricultural Specialist, US Embassy,

London Mr. Ian Flagg, Regional Director for the Middle East,

North and East Africa, U.S. Wheat Associates, Casablanca

Observers Mr Goris van Lit, Regional Director for Europe and the

Former Soviet Union, U.S. Wheat Associates, Rotterdam Mr. Eugene Philhower, U.S. Soybean Export Council, Chesterfield

5

OBSERVERS INTERNATIONAL ORGANIZATIONS

FAO Mr Abdolreza Abbassian, Senior Economist, Trade and Markets

Division, Rome OECD Ms. Céline Giner, Agricultural Policy Analyst, Trade and Agriculture

Directorate, Agro-food Trade and Markets Division, Paris WFP Mr. Greg Barrow, Head of Office, London

OBSERVERS

BRAZIL Mr. Joaquim Pedro Penna, Counsellor, Permanent Representation

of Brazil to International Organisations, London

Mr. Leonardo Azevedo, Secretary, Permanent Representation of Brazil to International Organisations, London

CHINA Mr. Lu Jing Bo, Vice Administrator, State Administration of Grain

(SAG)

Ms. Yang Lili, Director General, Shandong Provincial Bureau of Grain

Mr. Feng Lihui, Deputy Director General, Fujian Provincial Bureau of Grain

Mr. Li Ming, Deputy Director General, Sichuan Provincial Bureau of Grain

Mr. Tang Mao, Division Director, Department of Macro-Control and Adjustment, SAG

Ms. Zhang Yi, Senior Staff, Department of Foreign Affairs, SAG OMAN Mr. Said Juma Alsheyadi, Director of Food Security Department,

Public Authority for Stores and Food Reserve, Muscat TAIPEI (CHINESE) SEPARATE CUSTOMS TERRITORY

Ms. Mathilda Lee, Assistant Director, Taipei Representative Office in UK, London

15 June 2015

IGC PRESS RELEASE

Meeting of the International Grains Council and IGC Grains Conference London, 8-9 June 2015

Members of the International Grains Council met on 8 June under the Chairmanship of Mr. Abdulrahman Al Ruwaitie of Saudi Arabia. The Council reviewed the latest supply and demand outlook and market developments for the global grains and oilseeds markets, recent changes in national policies and various administrative matters. The Council’s latest forecasts for 2015/16, as detailed in the latest Grain Market Report (GMR455, 28 May 2015), suggest that world grain (wheat and coarse grain) production may fall slightly short of the previous season’s record. However, with a high level of carryover stocks from 2014/15, overall supplies are expected to remain comfortable. Global demand was forecast to expand, driven mainly by increases in food and industrial uses. While 2015/16 projections for rice were much more tentative, supplies were seen tightening, especially in the major exporters. Although planting of South America’s next soyabean crops was still some months away, an increase in area was expected to maintain a high level of 2015/16 production. The Council considered various administrative matters, including an update from the Secretariat on progress with the economic work programme. For 2015/16, the Council would continue to focus on its core analytical activities, while enhancing collaboration with other international organisations, particularly through the AMIS initiative. The GMR Markets and Trade Plus, a new package to be launched for private subscribers later this year, would offer detailed insights into world trade flows. At the Session the Council agreed to extend the Grains Trade Convention, 1995, by a further two years from 1 July 2015 to 30 June 2017. It also agreed to extend the Executive Director’s contract for a further two years when it expired in 2016 to 31 January 2018. The Council appointed Ms. Carla Seain, Under-Secretary for Political Coordination, Ministry of Agriculture, Livestock and Fisheries, Argentina, Chairman of the Council for 2015/16 and Mr. Aly Toure, Permanent Representative of Côte d'Ivoire to International Commodity Organizations, London as Vice-Chairman. The Council took note of statements by observers from the FAO and OECD. It also welcomed the participation of observers from several non-member countries: Brazil, China, Oman and Taipei Chinese Separate Customs Territory. On 9 June, members of the Council were joined by a large number of representatives from industry and other organisations for the IGC Grains Conference, on the theme of “Building on success, responding to challenges.” Among the themes discussed were the supply and demand outlook, environmental issues and their potential market impact and a special focus on the Black Sea region. For the full timetable please see http://www.igc.int/en/conference/programme.aspx

PR(IGC Jun 2015)