Stroll The World's Big Farm Market Players
The Mid-November Marketing issue of Successful Farming is focused on global agriculture. Check out some of the features: jump in Brazil soybean production, Australia's big wheat exports, big demand for corn in Southeast Asia, and boosts in marketing tools.
Grain production in the Black Sea region is determined by three principal players: Russia, Ukraine, and Kazakhstan. Ukrainian corn production for the 2014-2015 marketing year was projected to fall to about 25 mmt, down from 26 mmt the previous year.
“Indonesia is quietly becoming one of the most exciting and dynamic corn markets in the world. It imports about 3 to 3.5 mmt, which would put it only slightly below well-known importers, like Taiwan,” Kevin Roepke, the U.S. Grains Council director of South and Southeast Asia.
Increasing Global Appetite for Protein Boosts Exports
Global meat consumption is still ascending. Its expected growth is pegged at about 1.9% per year from 2014-2023. Meat shipments from major exporters are projected to rise 2.2% per year.
Better but not yet good enough. Shippers and farmers are worried that pressure will be felt nationwide by barge lines as well as railroads struggling to move record crops to export.
Statistics show a backlog last March of 16,000 grain cars in the BNSF Railway Company system and 8,000 in North Dakota alone. By summer, cars more than three days past due fell to 1,000 in North Dakota but crept back up to about 3,000 in October.
If there is one region in the world that could possibly compete with the U.S. as the world’s supplier of corn and soybeans, that would be South America. There has been a significant surface expansion (mostly in Brazil and Argentina) in the last three decades, new players are involved (such as Paraguay and Bolivia), and there is a large amount of available land in Brazil.
The U.S. and Canada enjoy the largest bilateral trading partnership in the world.
Trade across Ambassador Bridge between Windsor, Ontario, and Detroit, Michigan, is equal to all trade between the U.S. and Japan.
For Australia, wheat is the top export crop. “Out of the 25 million metric tonnes we produce annually, we export 20 million,” he says. “Australia has 20% of the world trade in wheat.”
This year’s late, wet harvest is a red-flag indicator of a potential spike in entrapments in 2015. An abundant crop with a lower harvest price means more grain will be stored. Fatal bin incidents and entrapments rise as grain is stored over longer periods and at less-than-ideal conditions. New cages, steps, and platforms could be the answer to staying safe.