Scholars suggest innovative methods for preserving grains and edibles.
Amidst the surge in food prices between 2020 and 2023, experts have floated the idea of public food storage facilities for grains and other goods. As governments have been urged to safeguard food supplies and control prices during times of multiple crises, suggested economist Isabella Weber in Berlin on Thursday. The proposed creation of publicly managed, internationally supervised storage facilities could potentially curb price spikes and prevent shortages.
Each percentage point rise in food prices can push millions of people across the globe into extreme poverty and exacerbate overall inflation, Weber elaborated, having collaborated on the study with Merle Schulken for the Heinrich-Böll-Foundation, the Rosa-Luxemburg-Foundation, and TMG Research. Their findings indicate that escalating food prices likewise burdens the debt of countries that heavily import food.
These storage facilities could operate much like central banks, as per Weber. In periods of extraordinarily high prices, such as at the onset of the grain attacks on Ukraine, public institutions could pull from reserves and thereby lower prices. Conversely, if prices are low and farmer yields are poor, storage facilities could buy up food, raising prices in turn.
This approach could also help keep food storage costs reasonable. "By purchasing a diverse range of storable agricultural commodities like millet, corn, wheat, or vegetable oils, a steady income for regional producers could be secured," said Jan Urhahn from the Rosa-Luxemburg-Foundation.
The researchers advocated for setting up storage facilities at "significant strategic locations." They also recommended the establishment of "robust market monitoring stations" that develop tailored solutions for each product. For the system to function effectively, it's essential that storage is earmarked for food security purposes, and that food is transparently managed and monitored by a neutral United Nations organization.
Read also:
- Due to the increase in food prices, researchers have proposed the creation of public food storage facilities for grains and other perishable goods to maintain food security and control prices during crises.
- In light of escalating food prices affecting both consumers and importing countries, researchers suggest operating food storage facilities like central banks, releasing reserves during high-price periods and purchasing during low-cost, low-yield times.
- Because of the potential of food price spikes and shortages, researchers advocate for the establishment of international, supervised food storage facilities at strategic locations, equipped with market monitoring stations to ensure efficient and transparent food management.
