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Food Security: an Economic Imperative

Barrasiha-ye Bazargani [Business Studies];
The Journal of The Institute for Business Studies & Research (Monthly)
Nov.-Dec. 1997, No. 124

Summary:

According to Minister of Health Dr. Mohammad Farhadi, Iran's per capita daily intake of energy-giving and protein foodstuffs amounts to 2,668 calories and 73.5 grams, respectively. However, due to the inequitable distribution of these items, about 16 per cent of the society suffers from low energy intake and 11 per cent from low protein intake. The per capita production of food has gone up from 630 kilograms in 1988 to 920 kilograms in 1997. The production of wheat also reached 10.5 million metric tons in 1997.

Iran's main food imports in 1997 were wheat (4.5 million tons), rice (400,000 tons), raw vegetable oil and sugar.

Text:

In any society, food security can be achieved through investments in agricultural and food products. Iran has also focused its attention on agriculture in the first and second five-year plans for economic, social, and cultural development in order to assure food security. The capital infusion and other measures implemented in this sector have, to some extent, achieved the desired results.

The hike in food production and trade not only ensures food security for the society, but it can also earn hard currency for the country. Thus, giving due consideration to the growth of the population, the continuation and expansion of endeavors to improve the performance of the agricultural and food sectors are an undeniable necessity. For Islamic Iran, which still generates two-thirds of its foreign income from oil exports, an increased importation of foodstuffs and the failure to prod the domestic production of these limited items can lead to irreversible economic losses.

Climate is one big factor in determining the level of food production, but it is not the only one as other important considerations also have a great impact in the achievement of food security. These include taking appropriate action for irrigation and providing water for farming, undertaking scientific research on improving farming techniques and setting up other complementary institutions and support industries. Due to special programs initiated in the agricultural sector, Iran has become self-sufficient in the production of several farm products. Nevertheless, with the expanding population, intense efforts to maintain continuous growth of farm output is an imperative.

Local production of wheat, which is a major product, increased from some seven million metric tons in 1989 to about 10.5 million tons in 1997, while rice output went up from 1.7 million tons to 2.5 million tons in the same period, potato from 2.6 million tons to 3.5 million tons, vegetables from 4.7 million tons to 10 million tons, fruits from 7.9 million tons to more than nine million tons. Despite such increments, Iran's balance of trade in farm products shows a 700 million-dollar deficit. Major imports in 1977 included wheat (4.5 million tons), rice (400,000 tons), raw vegetable oil and sugar.

The Ministry of Agriculture noted that at the end of the second five-year development plan, the country's wheat output should have reached 14 million tons, rice 3.1 million tons, sugar beet 6.2 million tons, sugar cane more than 10 million tons, potato 3.5 million tons, barley 4.3 million tons, oil-seeds 560,000 tons, fruits 13 million tons, vegetables and summer crops 12.5 million tons. In the past year, wheat harvests dropped as a result of drought and Iran continues to depend on imports of this product. For some items, however, the country produces enough to meet internal demand and even exports part of its output.

Government Officials' Views on Food Security

At the ceremonies held on "World Food Day", Minister of Health Dr. Mohammad Farhadi remarked: "Malnutrition adversely affects the realization of the capabilities and the efficiency of developing countries. It creates and spawns poverty. Developing countries that are not able to meet their food requirements have to expend their financial resources to obtain their needs from the international market. In so doing, they have less to invest in the eradication of poverty, which is the main and root cause of chronic malnutrition."

Recounting the ill effects of food insecurity on the family and the society in general, he added: "Although a study of food consumption on the national level indicates that the per capita daily calorie intake is about 2,668 calories and that of protein is 73.5 grams, which even exceeds the recommended level, inequitable distribution of foodstuffs has resulted in 16 per cent of the social strata to suffer from low calorie intake and 11 per cent from low protein consumption."

At the same event, Minister of Agriculture Dr. Issa Kalantari enumerated the strategies for attracting investment to improve the system of food production and the nutritional chain, as well as achieve long-term food security.

"A study of the performance of the agriculture sector in the first five-year development plan shows that the value added in this sector grew by an average rate of 5.95 per cent (twice the rate of increase in population) during the years 1989-1994. Per capita food production rose from 630 kilograms in 1988 to about 920 kilograms in 1997."

Noting that the large-scale distribution of food does not have the desired characteristics, he said: "The potential capacity of production in the agricultural sector is much higher than present output levels, but drawbacks related to infrastructure investments in this sector, in research, training, as well as the lack of appropriate technologies and other inefficiencies affecting production, have prevented the system from actualizing all its potentials."

Minister of the Construction Jihad Mohammad Sa'eedi-Kia, who also joined other officials in observing "World Food Day", presented some figures on hunger and malnutrition in the world and said: "There is no doubt that the efficiency and productivity of human beings depend on the quantity and quality of nutrition in their society. The drive for work and effectivity in the workplace are closely linked to good nutrition and health."