Arab countries face a number of foodsecurity risks due to their high dependence on wheatimports. This study explores ways in which countries canmitigate these risks. The authors evaluate the wheat importsupply chain (WISC) from the unloading port to bulk storageat the flour mill, before the wheat is milled into flour.Existing literature treats isolated topics related to thesupply chain, such as strategic storage and the use offinancial instruments. This study is unique in that it takesa holistic view of the supply chain by examining howstrategic storage, logistics improvements, and procurementstrategies can all be used to improve food security. Thisstudy considers three critical aspects to the WISC andproposes several strategies Arab countries may consider tomitigate import risks: strategic storage (chapter two):maintain strategic wheat reserves to weather times of crisisand food supply disruptions and to contribute to domesticand international price stabilization effects. Logistics(chapter three): promote investments throughout the supplychain that create smooth logistics, improve security,provide a reliable supply of wheat, reduce the base cost ofimporting wheat, and reduce product losses. Procurement(chapter four): develop a procurement strategy thatleverages strategic partnerships while maintaining adiversified portfolio of suppliers and mitigates importrisks through the use of hedging strategies. Currently,overall storage capacity in the region averages theequivalent of six months of consumption, and estimatedending stocks average four and one-half months. However,many Arab countries are planning to increase their strategicwheat reserves as a policy to improve food security. Thiscan provide them with critical lead time to securealternative wheat supplies or supply routes during times ofcrisis. Reserves also offer psychological benefits that mayprevent hoarding and pilferage.
PDF
download
878987797
028-85220240
