Chapter 5


economy: Supply based approaches will have indirect effects on food demand (e.g. through
income changes of the producers or the real income effect of price changes), and vice versa.
Furthermore, in order to be effective and sustainable, increased food supplies need to be
absorbed by increased demand. On the other side, increased demand must be met by
increased supplies, otherwise food prices will rise and offset any gain.

Whether food security can be enhanced more effectively by supply or by demand based
approaches depends also on the predominant types of food deficits in a particular country or
area of concern: in countries or areas where temporary or structural production/supply
deficits are the predominant problem (e.g. due to insufficient market production and scarcity
of foreign exchange to pay for food imports), there is a priority need for supply based
approaches (Fig. 5.1 a). In cases where, due to wide-spread poverty, demand deficits are the
main issue of concern (Fig. 5.1 b), policy measures must be primarily geared towards
employment and income generation or other measures to promote access to food of the
vulnerable groups.


Figure 5.1 Structure of food deficits and priority approaches to food security required


a) Large production/supply deficits, b) Large demand deficits, primarily
 primarily supply based approaches demand based approaches required
 required




 price price
 price requirements requirements

 demand


 demand production
 /domestic
 production/ supply
 domestic supply




 ----- volume > volume


The further analysis draws heavily on the conceptual framework presented in Annex 1. Its
prior review will facilitate comprehension of the further analytical steps.


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