CAPE TOWN, Sept. 17 (Xinhua) -- Experts have called for the establishment of state-managed food buffer stocks to address food insecurity in South Africa and protect consumers from sudden global disruptions.
The proposal was outlined in a new policy brief, "Staple Food Price Trends in South Africa: A Case for Buffer Stocks?," launched on Wednesday at a hybrid panel discussion co-hosted by the Institute for Economic Justice (IEJ), Rosa Luxemburg Stiftung, and Heinrich Boll Stiftung Cape Town.
The event, part of the Group of 20 (G20) Dialogue Series on Food Justice, coincided with the G20 Agriculture Working Group and Food Security Task Force Ministerial Meetings in Cape Town, ahead of the 2025 G20 Summit in November.
Experts argued that buffer stocks could help stabilize food prices, build resilience against climate change and droughts, and support smallholder farmers by diversifying local food production, including indigenous grains.
They added that the approach would also align South Africa's efforts with regional and global initiatives under the Southern African Development Community, the African Union, and the G20 food security agenda.
Sophia Murphy, executive director of the Institute for Agriculture and Trade Policy, described buffer stocks as "an age-old solution to a perennial problem," noting their potential to reduce volatility for both producers and consumers. Unlike private stockholders who profit from price swings, she said, public reserves would provide transparency and stability.
Andrew Bennie, senior researcher at the IEJ, said public stockholding had grown since the 2007-2008 and 2022 global food crises, which triggered food price spikes and hunger despite no absolute food shortages. Buffer stocks, Bennie explained, work by buying grain when prices are low and releasing it during surges, with potential to be scaled at farm, community, national, or regional levels.
Refiloe Joala, food sovereignty program manager at Rosa Luxemburg Stiftung, said high unemployment and inequality were key drivers of food price instability, noting that while global commodity prices often fall, retail food prices in South Africa remain high due to large profit margins by processors and retailers.
Joala said buffer stocks could ensure food availability during emergencies, while providing the government with a mechanism to stabilize prices. She added that transparency and strong oversight, including contracts with smallholder farmers, would be critical to the system's success. ■