Developments in grain storage

04 July 20222 min reading

Fears of a global food crisis are growing due to the shock of the war in Ukraine, climate change and rising inflation. The anxiety about a new global food crisis leads many countries to increase their capacities for grain storage. The storage of grain is important from a food security perspective as reserves provide a supply cushion in emergencies and influence food market dynamics by impacting key parameters such as prices.

Food security is a top priority and a long-standing challenge facing the international community. The COVID-19 pandemic, extreme weather events, economic recession and the Russia-Ukraine conflict led to sharp rises in grain prices, further exacerbating the imbalance between supply and demand. The war has led to a rapid global breakdown in food security due to the importance of both countries in supplying grain stocks, affecting supply chains and prices, with consequences hitting the most vulnerable countries and population groups.

As fears of a global food crisis are growing due to the shock of the war in Ukraine, many countries plan to increase their capacities for grain storage in addition to diversifying their sources. Countries in North Africa and the Middle East are investing in silos which help to facilitate the storage of grains for a longer time under appropriate conditions, irrespective of the external weather conditions.

Grains are critically important for world food security. They are main staple foods in practically every country and constitute essential sources of calories for large parts of the population. One characteristic that makes grains particularly important from a food security perspective is their storability, which is higher and less costly compared to many other food products.

A large number of governments hold grain stocks to safeguard national food security in case of an emergency. Apart from helping guarantee the physical availability of food, grains are also stockpiled to protect against unexpected price spikes that might seriously limit people’s access to food.

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