Publication: The Grain Chain: Food Security and Managing Wheat Imports in Arab Countries
Date
2012
ISSN
Published
2012
Author(s)
World Bank
FAO
Abstract
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.
Citation
“World Bank; FAO. 2012. The Grain Chain: Food Security and Managing Wheat Imports in Arab Countries. © World Bank, Washington, DC. http://hdl.handle.net/10986/23964 License: CC BY 3.0 IGO.”