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Storage Policies: Stockpiling Versus Immediate Release

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  • Wesseler Justus

    (Wageningen University, Wageningen, Netherlands)

Abstract

Storage policies are used in many countries to smooth price volatility and thereby support food security. When there is a global decrease in food supply caused by a number of extreme weather effects, food reserves are expected to reduce the potential negative implications for households with low purchasing power. In this paper, the properties of such a stockpiling policy are assessed and compared to a policy with storage but without stockpiling. The results show that a stockholding policy is an expensive strategy that generates economic benefits only in extreme cases.

Suggested Citation

  • Wesseler Justus, 2020. "Storage Policies: Stockpiling Versus Immediate Release," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 18(1), pages 1-9, January.
    • Handle: RePEc:bpj:bjafio:v:18:y:2020:i:1:p:9:n:4
    DOI: 10.1515/jafio-2019-0055
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    References listed on IDEAS

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    1. Derek Headey & Sangeetha Malaiyandi & Shenggen Fan, 2010. "Navigating the perfect storm: reflections on the food, energy, and financial crises," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 217-228, November.
    2. Brian D. Wright, 2012. "International Grain Reserves And Other Instruments to Address Volatility in Grain Markets," The World Bank Research Observer, World Bank, vol. 27(2), pages 222-260, August.
    3. G. C. Van Kooten & Andrew Schmitz, 1985. "Commodity Price Stabilization: The Price Uncertainty Case," Canadian Journal of Economics, Canadian Economics Association, vol. 18(2), pages 426-434, May.
    4. Itamar Megiddo & Dusan Drabik & Tim Bedford & Alec Morton & Justus Wesseler & Ramanan Laxminarayan, 2019. "Investing in antibiotics to alleviate future catastrophic outcomes: What is the value of having an effective antibiotic to mitigate pandemic influenza?," Health Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 556-571, April.
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    Cited by:

    1. Yaodong Yang & Huaqing Ren & Han Zhang, 2022. "Understanding Consumer Panic Buying Behaviors during the Strict Lockdown on Omicron Variant: A Risk Perception View," Sustainability, MDPI, vol. 14(24), pages 1-19, December.
    2. Tarek Ben Hassen & Hamid El Bilali & Mohammad S. Allahyari, 2020. "Impact of COVID-19 on Food Behavior and Consumption in Qatar," Sustainability, MDPI, vol. 12(17), pages 1-18, August.
    3. Nelson Borges Amaral & Bin Chang & Rachel Burns, 2022. "Understanding consumer stockpiling: Insights provided during the COVID‐19 pandemic," Journal of Consumer Affairs, Wiley Blackwell, vol. 56(1), pages 211-236, March.
    4. Kum Fai Yuen & Xueqin Wang & Fei Ma & Kevin X. Li, 2020. "The Psychological Causes of Panic Buying Following a Health Crisis," IJERPH, MDPI, vol. 17(10), pages 1-14, May.

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    More about this item

    Keywords

    food crisis; grain reserves; hoarding; stockpiling; storage; uncertainty;
    All these keywords.

    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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