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The Grain Chain : Food Security and Managing Wheat Imports in Arab Countries

ACCESSIBILITY ACCIDENTS AGRICULTURE AVERAGE PRICE AVERAGE PRICES AVERAGE TRANSIT TIME BENEFITS BLACK MARKET BOTTLENECKS BREAD BRIDGE CANADA CAPITAL COSTS CEREAL IMPORTS CEREAL PRICES CEREAL PRODUCTION CEREALS CLIMATE CLIMATE CHANGE COAL COMMODITY MARKETS COMMODITY PRICES CONSUMER PRICE CONSUMPTION PATTERNS COST OF FUEL COST OF TRANSPORTATION COSTS DELIVERY OF GOODS DEMAND DEMAND FOR FOOD DIESEL DOMESTIC MARKET DOMESTIC PRODUCTION DONOR COMMUNITY DRAWN DOWN DRIVERS DRIVING ECONOMIES OF SCALE EFFICIENCY GAINS EXTREME TEMPERATURES EXTREME WEATHER EXTREME WEATHER EVENTS FINANCE FINANCIAL INSTRUMENTS FLOUR FLOUR MILLS FOOD FOOD CONSUMPTION FOOD IMPORTS FOOD PRICE INFLATION FOOD PRICES FOOD PRODUCTION FOOD SAFETY FOOD SECURITY FOOD SHORTAGES FOOD STOCKS FOOD SUPPLIES FOOD SUPPLY FREIGHT FUEL FUEL PRICES FUEL SUBSIDIES GRAIN RESERVES GRAINS HOUSEHOLD BUDGETS IFPRI INCOME INFLATION INFRASTRUCTURE INFRASTRUCTURE INVESTMENT INLAND TRANSPORT INSURANCE INSURANCE POLICY INTEREST RATE INTERNATIONAL MARKET INTERNATIONAL MARKETS INVENTORIES INVENTORY INVESTMENTS LOGISTICS MARGINAL COST MARKET MARKET DISTORTIONS MARKET RISKS MARKET VOLATILITY MARKETS MILLS MODELS PETROLEUM PRICES POLICIES POLICY POPULATION GROWTH PORTFOLIO PRICE PRICE INCREASE PRICE INCREASES PRICE INDEX PRICE INFLATION PRICE RISK PRICE STABILIZATION PRICE VOLATILITY PRODUCT PROFIT MARGINS PURCHASING QUALITY OF TRANSPORT RAIL RETAIL RETAIL PRICE RETAIL PRICES REVENUES RISK MANAGEMENT ROAD ROAD CONDITIONS ROAD NETWORK ROADS ROUTES SAFETY SEVERE WEATHER SEVERE WEATHER EVENTS SIGNALS STOCK STOCKS STORAGE STORAGE CAPACITY STRATEGIC RESERVE SUBSIDIES SUBSIDY SUBSTITUTION SUPPLIERS SUPPLY SUPPLY CHAIN SUPPLY CHAINS SURPLUSES TOTAL COST TRAINING TRANSIT TRANSPORT COSTS TRANSPORT INFRASTRUCTURE TRANSPORT MODE TRANSPORT NETWORK TRANSPORTATION TRANSPORTATION ACCOUNTS TRANSPORTATION COSTS TRANSPORTATION INFRASTRUCTURE TRANSPORTATION NETWORKS TRANSPORTATION SYSTEMS TRUCKS UNINTENDED CONSEQUENCES WFP WHEAT WHEAT FLOUR WORLD FOOD PROGRAMME WORLD MARKET WORLD MARKETS
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World Bank, Washington, DC
Middle East and North Africa | Middle East | North Africa
2016-03-29T19:10:52Z | 2016-03-29T19:10:52Z | 2012

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.

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