UNIVERSAL access to affordable food is a critical issue globally. The heigh tened concern regarding secure, ready access to food supply stems from soaring commodity prices, a reduction in global stock levels, the increasing cost of agricultural inputs, and competition from alternative energy producers. The Middle East and North Africa region is strongly affected by these factors, given limited arable land and irrigation water. "In some MENA countries, food shortages have led to civil unrest, whilst escalating food prices have also forced some governments to step up food subsidies, further straining public finances," explained Nabih Maroun, a partner with Booz & Company, the global management consulting firm.
As a result of these factors, several MENA governments have begun taking steps to createa comprehensive food security policy. Why now, and what is involved? Much of the MENA region has limited arable land and water supply and many countries even fall below the United Nations standard for water poverty. "Because certain crops, such as rice, require a large amount of water for cultivation, many MENA countries must resort to imports, thus increasing their vulnerability to global supply trends and disruptions," explained George Atalla, also partner at Booz & Company. MENA countries are now taking a close look at alternative sourcing strategies as part of a comprehensive food security policy. This policy must determine which foods are strategic, before focusing on the four major policy components: availability, affordability, nutritional and health value, and safety. Quantity, timing, and reach are critical elements for ensuring food availability. Booz & Company's approach is based on maximising the efficiency of all three elements - strategic commodities must be available: in the quantities needed, on time, and within full reach of the population. Quantity: Increasing readily available food "Policymakers must ensure there is an ample amount of food within the country through a mix of domestic production and imports. A third emerging alternative is off-shore contract farming, where countries gain access to another country's arable land, water, and labour to grow their strategic crops and import them," commented Maroun. Domestic food production. To maximise their domestic food production policymakers can choose to increase cultivated land area or alter the crop mix in favour of the strategic crops, enhance land productivity and yields through research, and/or introduce biotechnological advancements in the form of Genetically Modified Organisms (GMOs). Food imports. Imports help meet consumption needs when a gap arises between demand for food and domestic supply. Liberalised economies typically rely on the private sector for imports, however in the MENA region this remains shared between the public and private sector. Additionally, a reliance on imports will require governments to ensure an effective supply chain infrastructure, such as offloading capabilities at ports, sufficient storage capacity, and so forth. Offshore contract farming. When domestic production is not possible and imports are volatile and unstable, offshore contract farming has emerged as an alternative. A country would enter into an agreement with another for access to its agricultural land, water, expertise, and labour. Recently, Gulf Cooperation Council governments seeking to ensure food security have considered contract farming. It is not yet clear whether contract farming will prove successful as in times of tight supply, many countries will ban exports. "To ensure cropavailability, policymakers should ideally develop strong trade agreements and relationships with resource- abundant and politically stable countries," said Atalla.
Timing: Ensuring the availability of food Provi
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