Global Food Trade & Developing Countries

FRE 306-UBC –Oct 06-18

D Badulescu

Global Food Trade & Developing Countries

• Corn – disparities between North & South

• Corn is one of the top 3 commodities planted around the world

• Its biological origin is located in Mexico

• Annual plant > food & feed

• Cycle planting - harvesting: 5-6 months

• Key source of carbohydrates and vitamins

Global Food Trade & Developing Countries

• Corn – disparities between North & South• Corn is one of the top 3 commodities

planted around the world• Its biological origin is located in Mexico• Annual plant > food & feed• Cycle planting - harvesting: 5-6 months• Key source of carbohydrates and vitamins• But ethanol and chemicals reshaping mkt

Global Food Trade & Developing Countries

• Corn 2005

• Main producers are China, EU, Brazil, Mexico & Argentina

• Total production: 700 million tons (+13%)

• Demand growing but at slower pace

• US is a leading producer, consumer, exporter (70% of world exports)

• It supplies only 10-20% of own demand

Global Food Trade & Developing Countries

• Prices in the world adjust to US levels

• Argentina and China leading exporters

• Ukraine, Romania, South Africa

Main importers are

• Developing countries, Russia, Middle East, Asia, Africa

• Imports depend heavily on internal ag and trade policies

Global Food Trade & Developing Countries

First decade of genetically modified (GM) corn

• Results are mixed

• BT technology – bacterium inserted in plant to produce toxin killing insects

Key changes

• Reduction of pesticide spraying

• Need to pay license by farmers

Global Food Trade & Developing Countries

• Who are the players?• Governments• Multilateral agencies (WTO, IMF, OECD)

global governance (institutions/how we get organized)

• Individuals –farmers, consumers, citizens• NGO´s (Greenpeace, CWB, farmers

assoc)• Corporations

Global Food Trade & Developing Countries

Players and how they relate?Farmers

CitizensGovernments

NGO´sCorporations (different types-scopes)

CitizensPolitical

parties Multilateral/Global Governance

Global Food Trade & Developing Countries

• How do players and interactions aid/harm global global food trade?

• How do these factors affect development and developing countries

• Let´s think again corn

Global Food Trade & Developing Countries

• How do players and interactions - let´s think again corn:

• Some players and examples:• Corporations – Monsanto (seed-chemicals)• Multilateral – WTO, IMF, FAO, OECD, IPO• Citizens – Consumers, workers, farmers, traders• Think tanks – Davos, Alternative fora• NGO´s – Fair trade, Greenpeace, Amnesty Int.

Global Food Trade & Developing Countries

• What is being traded ?

• Effects on trade and developing countries/development

• Flows of capital/control – north/south

• Flows of knowledge / control

• Determination of prices/conditions/standards

Global Food Trade & Developing Countries

• What is being traded ? Around corn• Machinery, labor, energy, seed,

chemicals, knowledge, IP, insurance, insurance, financial, logistics, warehousing, processing, marketing, distribution, retailing

• Control?• Consequences for developing countries• Competitiveness ? How do we evaluate?