Food Security Analysis
3 February 2009
Agriculture Secretary Arthur Yap has renewed his plea to various governments for the establishment of a global food reserve to stabilize supply and prices in the world market. Such food reserve, particularly for rice and other cereals, would also act as an emergency supply in case of production shortfalls. Speaking before world leaders at the United Nations High-Level Meeting on Food Security for All in Madrid last week, Yap said setting up a food reserve is urgent concern since there are indications that there would be another round of price spikes that would contribute to panic buying. He stressed the retreat of food prices at the moment is temporary. [...] When prices are too low, as it is today, he said the Reserve will buy rice stocks from producers to prevent the rice from being dumped into the market and depressing prices further, thus protecting the welfare of farmers. On the other hand, when prices are too high, the Reserve will protect consumers by releasing rice into the market, bought at a lower price, to stabilize supplies, he said. “These stocks can be pre-positioned around the globe to answer the call of the most vulnerable and operated by an existing organization like the World Food Programme, with a proven track record in food relief and management operations," Yap said. “This mechanism promotes certainty. And certainty dispels volatility."
GMA News TV