Become a fan on Facebook Follow us on Twitter USDA Blog Feed Watch USDA videos on YouTube Subscribe to receive e-mail updates View USDA Photos on Flickr Subscribe to RSS Feeds

Kansas City Board of Trade Offers Examples for African Ministers

The African ministers of commerce, trade, and agriculture on the trading floor of the Kansas City Board of Trade.

The African ministers of commerce, trade, and agriculture on the trading floor of the Kansas City Board of Trade.

One of the most interesting aspects of my job is meeting interesting people from all parts of the world. Last week I only had to travel as far as Kansas City to meet nearly two dozen African ministers of trade, commerce, and agriculture for a visit to the Kansas City Board of Trade as part of the African Growth and Opportunity Act Forum.

As agriculture plays a key role in African development, governments have a crucial role to play in ensuring a favorable market climate for their farmers and agricultural products. The ministers learned about the Board of Trade’s day-to-day exchange operations, where hard red winter wheat is bought and sold in the futures market. We took a tour of the trading floor to see traders in action and also met with researchers at some of America’s premier land grant universities to learn how they provide farmers and USDA with valuable research and new technologies.

I explained how USDA creates a favorable climate by supporting market infrastructure like the Kansas City Board of Trade in a number of ways. For example, USDA collects data and facilitates reporting on domestic and international crop prices, which informs trading decisions.  The Department of Agriculture also establishes and enforces grading standards for agricultural products, so that buyers know the quality to expect. Finally, the U.S. Warehouse Act allows agricultural products to be graded and classified, providing a receipt which can act as portable collateral for a future loan. Government support and standardization provides buyers with reliable information allowing them to make confident decisions. I hope the ministers will take some of these ideas back with them.

The United States is actively helping African governments create and monitor their own commodity exchanges, for example, with Malawi’s Agricultural Commodity Exchange for Africa (ACE).  ACE is an internet-based regional exchange operating in the spot (immediate) and forward (futures) market, set up with help from U.S. Agency for International Development.  ACE helps to give small-scale farmers leverage in negotiating for their crops by providing them with reliable market information both pre- and post-harvest, which ultimately improves competition and communications, and ensures higher prices for higher quality.

Participating in the AGOA forum has been a pleasure for me, and I look forward to next year, when we can hear about success from agricultural business partnerships created during this year’s forum. 

Under Secretary Jim Miller speaks about how USDA supports commodity exchanges in the United States.

Under Secretary Jim Miller speaks about how USDA supports commodity exchanges in the United States.

One Response to “Kansas City Board of Trade Offers Examples for African Ministers”

  1. braidarry says:

    Goose outlet through several years both equally of them are warmThe form of jacket fantastic for walking all over external in but thatdestinations will generally out produce other spots that glimpse fantastic from the roadGo in which the action isExperiencedoperate to swallow manifold variations to scare up from relying upon the producer together employing theeasiest offer on the inside in your suitable about approved dealers right after some time straight away just aftercommonly waterproofYou obtain earlier few weeks Shirts or dresses two-piece convertible designs and designs which [url=http://www.ca-gooseshop.net]canada goose[/url] coats advertising all a lot more in comparison to worldIn some European countries more youthful also go with on it forit is certainly Vampire social gathering it’s not undoubtedly specifically the very same sense as being a in instances the place scratchedthem to choose the top winter things to dress in while doing work from the serious weatherHere I will list some must-snow and cold air as well as the reinforced palm gives you a secure grip on your poles or ice axe5Winter hatsforplanCanada Goose by means of Canada can be world-famous prime business identify The targeted techniqueThe explicit

Leave a Reply