This study examines the concepts and methods of the food security reserve system and analyzes the applicability of the food security reserve system to Far East Asia (Korea, Japan, Taiwan, and Hong Kong). It also appraises the sizes of the reserve facilities for grain reservation, for the stability of food supply and demand, and the expenses they will incur.
The Far East has achieved rapid economic development through industrialization and trade expansion policy. With, industrialization, urbanization, and income increase per capita national food consumption trends have gradually changed. Food consumption in Far East Asia has gradually become westernized, which has meant increases in the consumption of wheat and livestock, and consequent increase in the import of wheat and feed cereals. Food self-sufficiency is desirable when considering production farmers and national economy.
The current short-term reserve system for seasonal stability, which aims for stability of food supply and demand, has not been effective in poor harvest years, such as 1980. Therefore, the short-term reserve system for seasonal stability should be accompanied with a long-term food security reserve program in order to stabilize food supply and demand in preparation for unexpected production cuts or production increases as a result of a bumper crop (as occurred in 1981).
According to this study, the food security reserve system is economical. In order to maintain produce prices within the 15 percent upper limit, 60,000 metric tons of rice should be managed, a figure based on the assumption that the current short-term reserve system for seasonal stability will continue to be used. With the launch of the long-term food security reserve program, the food safety reserve stock should be added to the short-term reserve stocks to enhance seasonal stability.
The gradual change of the current agricultural policy is inevitable, considering the changes in the national economic structure during the 1980s. Especially, the reduction of the grain management special account deficit caused by the introduction of the double-tiered price system is particularly important. As the grain management special account deficit relies on the loan given by the Bank of Korea, it has been regarded as an inflationary factor through currency increase. However, the effect of the double-tiered price system on the increase in rural household income, and the decrease in urban consumer consumption expenditure is much greater than its inflationary effects. The current double-tiered price system is desirable for a cut in consumption expenditure through an increase in rural household income and price stability, but the gradual increase of the grain management special account deficit should not be overlooked. In other words, the government should develop a grain policy that can increase rural household income and enhance consumer safety through price stabilization, without expanding the grain management special account deficit. To that end, the government should gradually revise the current double-tiered price system to follow the principle of a general market economy, while stabilizing price through the balancing of supply and demand, to benefit both farmers and consumers.
양정전환을 위한 식량안보비축제도(The food security reserve system for food policy change)
|Series Title; No||연구보고서 / 제82-01권|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < Agriculture|