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.
Immediately related elementsHow this works
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Agriculture, food and land use »Agriculture, food and land use
Global food and agriculture »Global food and agriculture
Food stocks »Food stocks
Build and hold significant food stocks »Build and hold significant food stocks
Food stocks can be used to smooth out price peaks and troughs »Food stocks can be used to smooth out price peaks and troughs
Risk that food stocks will be used to distort the market
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