Common Fund for Commodities Marks International Day for the Eradication of Poverty, Calls for Structural Change in Global Value Chains

Amsterdam, October 29, 2024 – In commemoration of the International Day for the Eradication of Poverty, the CFC held a compelling webinar to spotlight the often-overlooked role of commodities as entrenched sources of poverty. It emphasized that only by humanizing value chains can we address the vast inequalities that persist, especially for the billions of smallholder farmers in
commodity-dependent regions who are often left with minimal returns for their hard work. Attended by a wide array of global stakeholders, the event underscored the need for structural reform and justice in commodity markets.

Themed "Ending Social and Institutional Maltreatment: Acting Together for Just, Peaceful, and Inclusive Societies," the webinar featured a keynote address from Professor Dr. Howard Nicholas, a prominent economist from the International Institute of Social Studies. He called out the global economic structures that benefit the Global North disproportionately, underscoring the urgency for the beneficiaries of the commodity system to reinvest dividends back into the communities in the Global South, where much of the world's agricultural labor force resides. Professor Nicholas emphasized that achieving justice and fairness within commodity markets requires the Global North to play an active role in sharing the benefits with smallholders and workers across the value chain.

Ambassador Sheikh Mohammed Belal, CFC's Managing Director, reiterated the importance of "humanizing the value chain," outlining the CFC’s goal to narrow the gap between farm-gate and retail prices. Through digital innovations and blockchain, Ambassador Belal shared how the CFC is working to ensure that farmers receive fair compensation. "The commodity sector is a hidden hideout of poverty," he stated, "and by reforming these systems, we can lift millions of farmers out of poverty and foster a more just global economy."

The CFC issued a call to action for governments, private sector allies, and consumers to support the Agricultural Commodity Transformation (ACT) Fund—a visionary impact investment initiative that directly addresses poverty by creating more inclusive value chains. Participants were encouraged to join the CFC’s mission to empower smallholder farmers and build a fairer global
market that respects the people at its foundation.

Learn more by watching our video on "Humanizing the Value Chain" to see how we work to ensure the benefits of commodity markets flow to those who need it most.

For more insights, watch our webinar recap below: