Page 53 - STRATEGY FOR SUSTAINABLE AGRICULTUR AND RURAL DEVELOPMENT IN THE PERIOD 2021-2030 AND VISION TO 2050

19.

What is the “Commodity Council”,
and what is its role?

According to FAO , Commodity Council or processors, and cooperatives) with equal
17
Commodity Association are the organizations voices in policy-making which is formed
that bring together multiple interest groups through a agency of which members are
related to a particular commodity or sector selected from different stages of production,
(such as the coffee sector) in a particular processing and trading). When the majority
country, whether the commodity is for export of delegates vote in favour of a rule/proposed
or domestic market or both. The Commodity policy, it becomes the policy of the Cotton
Councils can attract members from all actors Council.
in the value chain (producers, collectors, Commodity Associations and Commodity
processors, distributors and exporters, as Councils perform activities outside the
well as from input and supporting service asociations (such as government advocacy)
providers). Sometimes, Government agencies or internal (such as providing trainings for
can also be members of Commodity Councils. members or resolving disputes). However, in
The Commodity Council play an essential some cases there may be duplications, such
role in improving the value chain operation of as providing market information to members
a specific commodity’s value chain as a focal and non-members. The main activities of
point for policy dialogue with the government. the Commodity Council and Commodity
The Council also has many other functions, Association include (1) Policy Advocacy
including arbitration and formulating and trade negotiations; (2) Promotion
regulations, setting or advising on grades and improvement of quality ; (3) Training
and standards, promoting brands or quality, provision; (4) Market information and others;
assisting with research, trade promotion in (5) Providing solutions for difficult problems in
domestic and export markets, and information logistics; (6) Research and Development.
provision.
In the United States, for example, the
Cotton Council comprises members from
each stage of the chain (producers, splitters, 17 FAO. (2009). Commodity Associations: A tool for supply chain
development, Agricultural Management, Finance and Market-
storekeepers, companies, traders, cottonseed ing Report

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Guidelines for the Strategy for sustainable agriculture and rural development
Guidelines for the Strategy for sustainable agriculture and rural development 53
in the period 2021-2030, and vision to 2050
in the period 2021-2030, and vision to 2050