Buffer stocks bring benefits:
Every person, every country and the whole world benefit from grain buffer stocks:
Countries: Food security – the country knows that it will eat tomorrow, A more resilient food system (from ‘just in time’ to ‘just in case’)
Citizens: Avoid hunger and famine
Farmers: No slumps in farm prices, an acceptable profit and income; A predictable business environment
Governments: Avoids food crises, panic buying, food riots and protests by farmers; Avoids expenditure on farm payments and food handouts
Economy: Allocates resources more efficiently (the randomness due to varying weather is removed from the market price, the price reflects more accurately the balance of the cost of production and consumer demand)
World trade: Countries have greater trust in world trade as a reliable market because national buffer stocks stabilise domestic food prices and help to stabilise the world price of food
The world as a whole: By stabilizing the price of an essential commodity, buffer stocks make the world a more stable place for us all.
ACTION for Food Reserves can:
Provide further information on how food reserves work; how governments and regional organisations can use them to moderate the volatility of food and commodity prices.
Train staff of governments and regional organisations on how to design, set up and run a grain buffer stock.
Assist in feasibility studies and economic analyses.