This study introduces and defines the concept of food stock holding, and provides an overview of the food stock holding programs in practice in the Far East (i.e., South Korea, Japan, Taiwan, and Hong Kong). Food security is an issue of concern not only for farmers, but also to the national economy. While individual countries may adopt different measures to ensure their food security, it is a problem that is best addressed by concerted international efforts. Governmental intervention is crucial to solving this problem.
The food stock holding program involves a government purchasing large quantities of grains when there are grain surpluses, and thus cause grain prices to rise. The government then releases the grains it purchased when grain is undersupplied, and grain prices drop. The goal of this program is to even out fluctuations in the production of foodstuff from year to year, and better protect against food shortages, and enhance food security.
The Korean government has been actively intervening with the foodstuff market since the enactment of the Grains Management Act in 1950. However, it is time that we revisited the policies on government purchases and releases of grain and made improvements.
Grain management in Korea began in order for the government to secure stable supplies of grains. In the 1960s the goal of the program shifted closer to the stabilization of the grain prices. The short-term and seasonable stabilization measures in practice currently have proven to be incapable of dealing with unforeseen and massive droughts like the one of 1980. The Korean government therefore needs to focus more on countering abrupt and unforeseen declines in output and also on preparing against excessive surpluses, like from the harvest of 1981. To this end, it should introduce a long-term food stock holding program in addition to the current short-term one. Furthermore, regional governments may cooperate to ensure the food security of the region more effectively. Such a regional food stock holding program would involve creating food storage facilities at strategic locations, and making rational and efficient use of such facilities so as to minimize the costs of storing and transporting foodstuff. The participating countries may share the costs of building and operating such facilities, and also use them to buttress regional cooperation on security.
식량수급안정을 위한 식량안보 비축제도(Food stock holding program for food security)
|Journal Title; Vol./Issue||한국개발연구:vol. 3(no. 4)|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < Agriculture|
|Holding||KDI; KDI School|