Food Security Stocks and Emergency Reserves from a European Union CAP Perspective

Continuing world food market instability has created much concern about negative impacts internationally as well as within the European Union (EU). While there are many policies that have been proposed to deal with market volatility, the only ones that can change market fundamentals are those that deal with physical stocks. However, there are many misunderstandings and controversies concerning the institution and management of price stabilization and food security stocks. ¢e paper reviews these issues and also the economics of storage, and indicates the various ways in which physical stocks can be deployed to manage market instability. It also reviews governance, informational and trade facilitation issues, and the potential role of the EU, within the constraints of the Common Agricultural Policy (CAP) and the World Trade Organization (WTO) to contribute to global food stocks.