Global Food Trade & Developing Countries FRE 306-UBC –Oct 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 Citizens Governments NGO´s Corporations (different types-scopes) Citizens Political 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?