By Amanda Brodhagen, Farms.com
U.S.-based Cargill, the world’s largest agricultural trading house – chief executive Greg Page recently spoke at the FIT Global Commodities Summit in Switzerland. Page’s key message was this: “price is one of the most powerful signals on earth, and to be a communicator or disseminator of that price means we must accept huge responsibility.”
Cargill’s own Greg Page urges the commodities industry that trading houses must embrace ethical and transparent business practices or could risk losing public trust. “There are lessons to be learnt from the banking sector, and the forced legislation it prompted and is continuing to prompt,” noted Page.
"The term “trading” has become wrapped-up and confused in the public perception with speculation, hoarding, market fixing, monopolies, cartels and bad practices,” explains Page. Page also made a clear distinction between volatility and turbulence, noting that “outsize price reactions” can have consequences for consumer goods such as food.
While Page stopped short for calling for regulation he said "Better than self-regulation, is the self-realization that our long-term best interests - and society's - are served by good behavior and good transparency." Regulation is one of the hot topics being discussed at the conference.