The world has started stockpiling food again

According to the FT, the world is once again turning to stockpiling food supplies.

After many countries reduced their reserves in the past, relying on global trade, current events are forcing them to reconsider this strategy.

Countries like Norway and Sweden are starting to follow the example of Finland, where the chief emergency specialist Miika Ilomäki notes: “After the Cold War, we were the only ones who maintained reserves, as you never know what might happen.”

The replenishment of food stocks is linked to a number of global shocks — the pandemic, the war in Ukraine, and recent conflicts in Gaza, Venezuela, and Iran, as well as climate change. It also highlights significant disagreements in approaches to the global economy.

Managers of state resources believe that in times of crisis, one cannot rely on the market, and that food, like energy resources, should be recognized as a strategic asset.

However, economists and representatives of trade ministries warn that simultaneous stockpiling by many countries could lead to a decrease in global supply, rising prices, and negative consequences for the poorest importing countries.