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Food stocks can be used to smooth out price peaks and troughs
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Agriculture, food and land use
Agriculture, food and land use☜A three-year series of conferences on ‘Agriculture, food and land use: the international policy challenges’ – run by Wilton Park in association with the University of Exeter.☜F1CEB7
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Global food and agriculture☜The volatility of food and commodity prices is likely to increase due to pressures on world resources and more frequent extreme weather events. This map considers policy options in response to this increased volatility, the repercussions of which are experienced most acutely in low-income countries.☜FFB597
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Build and hold significant food stocks☜It is wise to build and hold significant food stocks☜59C6EF
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Food stocks can be used to smooth out price peaks and troughs
Food stocks can be used to smooth out price peaks and troughs☜☜98CE71
↳
Risk that food stocks will be used to distort the market
Risk that food stocks will be used to distort the market☜Stocks can reduce volatility if properly managed but it is necessary to be clear about their purpose. They were used at times in the European Union (EU), for example, to keep prices higher than they would otherwise have been for prolonged periods. Efficient global markets are considered essential.☜FFB597
↳
Smooth out price peaks during market shocks
Smooth out price peaks during market shocks☜Food stocks can be used to smooth out price peaks during market shocks.☜98CE71
↳
Smooth out price troughs after an abundant harvest
Smooth out price troughs after an abundant harvest☜Food stocks can smooth out price troughs after an abundant harvest.☜98CE71
□
Foods stocks guard against interruptons to supply
Foods stocks guard against interruptons to supply☜Foods stocks make the food system more resilient against interruptons to supply.☜98CE71
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Difficult to determine the level of stocks required
Difficult to determine the level of stocks required☜☜EF597B
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Food supplies are diverted from other uses
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High storage costs
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Graph of this discussion
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David Price
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Entry date (GMT):
9/19/2011 9:17:00 AM
Last edit date (GMT):
9/19/2011 9:27:00 AM
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