FOOD GRAIN RESERVES IN DEVELOPING COUNTRIES

6 by the Food and Feed Grain Institute at Kansas State University is presented in two parts. Part I includes an overall analysis of factors related to LDC food grain reserves and presents suggestions for AID policy to support building and maintaining such reserves. Part II presents guidelines for assessing the economic feasibility of LDC reserves using Bangladesh as a case example. Assistance programs by AID to help LDC"s establish reserves can serve numerous objectives in LDC"s while also serving market and price stability objectives of American agriculture. Reserves in LDC"s can supplement world and US reserves, increasing worldwide food security in years of lower-than-average food supplies from current production around the world. To obtain maximum net benefit from LDC reserves, optimum levels of reserve stocks should be maintained in each LDC, reflecting year-to-year production variations and price elasticities on an individual country basis. Determination must yet be made on which specific grain types and storage facilities are most desirable, taking into account individual country factors of grain storability, storage costs, market position, inventory financing costs, storage facility type, size, and design. Additional program-specific recommendations are included in the report.