Stable food prices, security hinge on modernized supply chains — ADB

Governments in Asia must work on modernizing farm-to-market supply chains to keep food prices in check and ensure food security in the region amid a growing population, the Asian Development Bank said Monday. 

 

“Improving post-harvest productivity in areas such as processing, storage and distribution, and directing government subsidies and support to the neediest farmers and regions are central to more efficient supply chains, which ultimately affect prices,” said the ADB, citing results of its recent report.

 

“Value chain transformation is crucial for ensuring that food prices in Asia’s cities – home to half the region’s people – remain affordable,” it added. 

 

The ADB noted that costs of energy, labor and farm inputs such as fertilizer and seeds remain substantial, and quickly translate into higher retail food prices. 

 

It added that rapid modernization of staple food chains in Asia has allowed farmers to increase control over production and trade. 

 

Calling for regional food security to be placed “front and center” in policy agenda, the ADB said there is no silver bullet to address challenges to food security and stable prices.

 

“Given Asia’s widely different zones, no 'one size fits all' approach will work, requiring tailored solutions,” said the ADB.

 

“A suite of policy and program measures is needed at various levels of the supply chain in order to stimulate the efficiency and competitiveness of expanding staples markets” it added. The report, “The Quiet Revolution in Staple Food Value Chains: Enter the Dragon, the Elephant and the Tiger,” was produced by the ADB and the International Food Policy Research Institute in response to spikes in food prices in parts of Asia. — VS, GMA News