A Cause for Agflation and Countermeasures against Food Crisis

• Published in: The Journal of the Korean Society of International Agriculture Vol. 20; no. 4
• Main Authors: Park, P.S. (National Institute of Crop Science, RDA, Suwon, Republic of Korea), E-mail: pspark@rda.go.kr, Lee, S.D. (International Agricultural RnD Team, RDA, Suwon, Republic of Korea)
• Format: Journal Article
• Language: Korean
• Published: 01.12.2008
• Subjects: agflation; food crisis; FOOD SECURITY; GRAIN; GRANOS; SECURITE ALIMENTAIRE; SEGURIDAD ALIMENTARIA; self-sufficiency
• ISSN: 1225-8504

Since the last year, the global grain price has soared to reach a record high while the grain stock has plunged into lowest, bringing up food crisis issues in earnest. The food is one of the three biggest issues of international society, along with oil price hike and financial crisis. As the world's grain consumption has surpassed the supply, it is prospected that the grain price hike will be further prolonged. Korea has already achieved self-sufficiency of rice, its staple food, but the sufficiency rate of major grains such as wheat, corn and soybean is very low. As Kore has been the world's fifth largest food importer. We should approach the issues with the more focus on food security. This paper aims to plan appropriate measures for addressing the trend. The government should closely observe the world's supply and demand and plan policies with mid- and long-term vision to diversify import sources and to maintain and expand the production base and to better utilize the futures market and to secure overseas grain production base. Research and development for the agricultural sector should vigorously go on. Martin Wolf of UK Financial Times emphasized the importance of RnD for increasing food supply in his recent article "Food crisis is a chance to reform global agriculture.", asking, "Will you let the poor starve or increase spending on research for food supply?". For the food security, we should secure the overseas food production base to make up for the shortage and increase investment for research to implement the self-sufficiency.