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  • Publication
    The Grain Chain: Food Security and Managing Wheat Imports in Arab Countries
    (World Bank, Washington, DC, 2012) World Bank; FAO
    Arab countries face a number of food security risks due to their high dependence on wheat imports. This study explores ways in which countries can mitigate these risks. The authors evaluate the wheat import supply chain (WISC) from the unloading port to bulk storage at the flour mill, before the wheat is milled into flour. Existing literature treats isolated topics related to the supply chain, such as strategic storage and the use of financial instruments. This study is unique in that it takes a holistic view of the supply chain by examining how strategic storage, logistics improvements, and procurement strategies can all be used to improve food security. This study considers three critical aspects to the WISC and proposes several strategies Arab countries may consider to mitigate import risks: strategic storage (chapter two): maintain strategic wheat reserves to weather times of crisis and food supply disruptions and to contribute to domestic and international price stabilization effects. Logistics (chapter three): promote investments throughout the supply chain that create smooth logistics, improve security, provide a reliable supply of wheat, reduce the base cost of importing wheat, and reduce product losses. Procurement (chapter four): develop a procurement strategy that leverages strategic partnerships while maintaining a diversified portfolio of suppliers and mitigates import risks through the use of hedging strategies. Currently, overall storage capacity in the region averages the equivalent of six months of consumption, and estimated ending stocks average four and one-half months. However, many Arab countries are planning to increase their strategic wheat reserves as a policy to improve food security. This can provide them with critical lead time to secure alternative wheat supplies or supply routes during times of crisis. Reserves also offer psychological benefits that may prevent hoarding and pilferage.
  • Publication
    Improving Food Security in Arab Countries
    (World Bank, Washington, DC, 2009) World Bank; FAO; IFAD
    This joint working paper lays out a rationale and strategic framework for improving food security and managing food-price shocks in the Arab countries. The paper does not provide country specific policy and project recommendations. Such recommendations will follow from the country by country application of the framework, taking into account each country's political and cultural preferences, resource endowments, and risk tolerance. In 2007 and the first half of 2008, a sharp rise in agricultural commodity and food prices triggered grave concerns about food security, malnutrition and increased poverty throughout the world. While the threat of a prolonged food-price shock receded with falling energy and commodity prices and a weakening global economy in the second half of 2008, many factors underlying the volatility in food prices appear here to stay and will require careful management if the world is to avoid future food-price shocks. This paper suggests three critical strategies that, together, can serve as pillars to help offset future vulnerability to price shocks: a) strengthen safety nets, provide people with better access to family planning services, and promote education; b) enhance the food supply provided by domestic agriculture and improve rural livelihoods by addressing lagging productivity growth through increased investment in research and development; and c) reduce exposure to market volatility by improving supply chain efficiency and by more effectively using financial instruments to hedge risk.