news

economic daily: the argument that “it’s better to grow than to buy” food should be put to rest

2024-10-03

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

there has always been an argument in china that "it is better to buy grain than to grow it." the reason is simply that the price of imported grain is much lower than that of domestic grain, which has obvious price advantages and is more cost-effective economically. but from a national security and strategic perspective, food security is the foundation of national security. only by adhering to the strategic policy of food self-sufficiency and keeping the rice bowl firmly in one's own hands can we ensure long-term peace and stability of the country and realize the great rejuvenation of the chinese nation.

food, which people cannot live without for three meals a day, is an important strategic resource for the country and the cornerstone of economic development, social peace, and national stability. the importance of food self-sufficiency is far beyond what simple buying and selling costs can measure. a country's complete reliance on imported food is tantamount to handing the initiative of food security into the hands of others and putting the country's fate in uncertainty. this is an extremely dangerous and irresponsible behavior. looking around the world, countries that neglect food production and rely too much on imports are often helpless when facing food crises, and eventually fall into turmoil and chaos. grain imports are affected by various uncertain and unpredictable factors such as trade frictions, extreme weather, geopolitical conflicts, trade protectionism, etc. once the international situation changes and food supply is limited, the consequences will be disastrous. in recent years, the conflict between russia and ukraine has triggered a grain transportation crisis in the black sea, extreme drought weather has caused the water level of the panama canal to drop, the red sea crisis has led to an increase in freighter transportation costs, and india’s restrictions on rice exports have triggered a global rice crisis. all of these have directly or indirectly affected impact on global grain trade.

currently, global grain trade is largely affected by the grain trade system constructed by the united states. the united states has built a global food trade system through agricultural advantages, global market status, food aid, genetically modified technology and seed monopoly, liberalized trade policies for agricultural products, and food financialization methods. the united states adm, bunge, cargill, and france louis dreyfus' four major grain merchants monopolize more than 80% of the world's grain trade, and many countries and regions are dependent on the united states for grain supply. these countries need to rely on imports to meet their domestic food needs due to various reasons such as insufficient food production capacity, limited climatic conditions, and increasing consumer demand. some countries have fallen into poverty, hunger, and social unrest due to long-term food shortages; some regions have been hit hard by food blockades and sanctions imposed by external forces, and their economic and social development has been severely hindered.

frequent food crises in recent years have warned us that only by keeping our rice bowls firmly in our hands and filling them with chinese grain can we survive the changes in the world. since the founding of the people's republic of china 75 years ago, our country has adhered to the strategic policy of food self-sufficiency to ensure that when the country faces external risks and challenges, it can still ensure a stable and safe supply of food and safeguard the country's food sovereignty and security. after hard work and unremitting efforts, my country's grain production has achieved leapfrog development. grain output has jumped from more than 200 billion kilograms in the early days of the founding of new china to 1,390.8 billion kilograms in 2023. per capita grain output has jumped from more than 200 kilograms in the early days of the founding of new china to 2023. of 493 kilograms, far exceeding the world average for many years in a row, and also higher than the internationally recognized food security line of 400 kilograms. on the basis of limited resources, we have achieved the task and goal of feeding and feeding the chinese people, and firmly grasped the initiative in food security. in your own hands.

the fundamental reason for the argument that "growing grain is worse than buying grain" is that my country's grain production costs are high and the returns from growing grain are low. compared with the large-scale operations in brazil, the united states, canada, australia and other countries, my country's grain production is mainly based on the production and operation of small farmers. the cost of labor costs, land rents, pesticides, fertilizers and other agricultural production materials remain high, directly pushing up the cost of food production. rising food production costs will be transmitted to food prices through market mechanisms. for the majority of grain farmers, grain production is currently facing the double squeeze of falling price "ceiling" and rising cost "floor", resulting in meager returns from planting. in the context of high production costs and low planting returns, it is more difficult to mobilize farmers' enthusiasm for growing grains. if no measures are taken to solve this problem, it will restrict the development of grain production and be detrimental to the realization of national food security goals.

the argument that "it's better to buy food than to grow it" should be put to rest. this short-sightedness should be eliminated by the tide of the times. (source of this article: economic daily author: liu hui)