International Grains Council (IGC)

HISTORY AND PRESENT STATUS

South Africa rejoined the International Grains Council in July 1995 when it signed the International Grains Agreement, which is comprised of two conventions, the Grains Trade Convention and the Food Aid Convention.

The objectives of the Grains Trade Convention are to further international cooperation in all aspects of grains trade, to promote expansion, openness and fairness in the grains sector, to contribute to grain market stability and to enhance world food security. These objectives are to be sought by improving market transparency through information sharing, analysis and consultation on grain market and policy developments.

The objective of the Food Aid Convention is to secure, through a joint effort by the international community, the achievement of the World Food Conference target of 10 million tons of food aid annually.

OTHER DEPARTMENTS AND COOPERATING ORGANISATIONS

Department of Agriculture

GENERAL COMMENTS

Membership to the IGC is significant for South Africa because it encourages international cooperation in all aspects of the grains trade. It promotes expansion, openness and fairness in the grains sector, thereby contributing to grain market stability.

The importance of participation in international forums such as the IGC is further enhanced by the growing exposure of the South African industry to international markets brought about by deregulation.

The IGC provides grain information on international markets to the grain industry, which South Africa would not be able to obtain without being a member of the IGC. This information pertains to grain market indicators (GMI), which provides weekly prices on the international grain markets.

The IGC sessions provide a platform to meet participants in the international grains trade and as such, serve as a venue to increase pressure on some major grain producing countries to phase out product support and subsidy measures.