Lu Feng: Food Security in Year of Pandemic
May 25-2020
In an article to be published in the May issue of China Banking magazine, Prof. Lu Feng of the NSD examines the food security issue faced by China and the world in the shadow of the pandemic. He specializes in RMB exchange rates, international balance of payment, and food security, among others.
Prof. Lu argues that despite significant pressures on global food security and rising risks of food crisis in some regions, China possesses the capabilities to safeguard domestic food security. A safety baseline has been put in place thanks to its long-running and stable grain output, at over 600 million tons per year, and the sheer scale of its reserve grain, at a ratio far higher than international standards.
China enjoys a self-sufficiency rate of over 98% in rice, wheat and maize, making it hardly susceptible to fluctuations in international trade. It remains highly dependent on the international market for soybean, which is mostly used as animal feed, though.
Furthermore, the government’s early and effective measures to cope with the pandemic and timely release of supportive agricultural policies have paved the way for smooth progress in spring farming. On April 17th, an economic meeting of the highest level designated food and energy security one of the top priorities for the year.
Globally, around one sixth of grain production passes through international trade and becomes food supply for people of other countries; therefore, to ensure the proper functioning of such a system is of great significance for global food security. Though some countries were in a haste to halt food export in the early stages of the pandemic, some of them have since canceled the restrictions. Provided that the pandemic doesn’t deteriorate further, the international food trade can be expected to steer away from disorder.
