Caution urged to resolve food crisis
The world has faced food crises twice since the latter half of the 20th century. The first one took place in 1973. The world end of term grain stock ratio, which had been on the decline for some years because of the worldwide grain failure, sank to a record-low of 15.4% in 1972. In the same year, the Soviet Union became a net-importer of grain due to the increase of livestock products consumed by the Soviet people. The 1973 crisis was caused by factors such as the bulk purchase of grain by the Soviet Union under the circumstances of poor harvest, and the U.S. placed an embargo on soybeans, albeit for a short period of time. The impact was so enormous that they named it the Reappearance of the Ghost of Malthus, and grain was referred to as the third strategic material behind nuclear weapons and oil. After that, however, countries including the European Community (EC) steered toward the enhancement of agricultural production, which considerably alleviated the condition of grain supply and demand. While protecting national borders by levying import surtaxes under the Common Agricultural Policy, the EC protected intraregional agriculture through generous support for farm product prices. As a result, they were plagued by excess produce in the 1980s. The EC implemented the raw milk quota system in 1984, and the U.S. also undertook the set-aside. The world grain market substantially shifted to the tone of excesses. The EC, which had failed to eliminate such excess, exported excess agricultural products to developing countries with export subsidies, and the U.S. used the said subsidies in defiance, causing a dumping battle with financial burdens. The agricultural negotiations in the Uruguay Round of GATT started in 1986 under the theme of removing the market distortion through agricultural protection by such developed countries, […]
