International exports and imports

Date: 2015-10-07; view: 417.

Foodstuff in international trade: products of agriculture, animal husbandry, forestry, fishery and sea trade, and also the semifinished products received on their basis and some final goods

Theme 4. Agricultural markets: markets of the food and agricultural raw materials

1. Foodstuff in international trade: products of agriculture, animal husbandry, forestry, fishery and sea trade, and also the semifinished products received on their basis and some final goods.

2. Markets of grain and products of their conversion. The world prices in the markets of foodstuff. Animal husbandry products.

3. Grain. Markets of vegetables and fruit. Sugar. Food flavoring goods: coffee, tea, cocoa, spices. Markets of agricultural raw materials. Rubber, forest goods, textile fibers.

4. Food and agricultural organization (FAO).

The global trade of food is a diverse and complex operation and one in which most countries strive to take part. Governments recognize that a strong national food industry is an important supplier of food to the population and a significant contributor to food security. They also view food exports as an important source of foreign exchange. The expansion and diversification of the food trade can be attributed to many factors. First, the disciplines of food microbiology, food chemistry and food technology are continuously providing a broader range of foods by developing new and more sophisticated preservation, processing and packaging techniques which make foods safer, less perishable and more attractive to the consumer. Second, rapid transport and improved handling methods have reduced the length of time and difficulties associated with moving food long distances, thus allowing traders access to new and far-away markets. Third, consumers' tastes and food habits have become more varied and their incomes and purchasing power have risen, stimulating the demand for traditional and new foods from other regions.

Whether a country is a net food importer or exporter may be determined by factors such as local conditions for agricultural production and food manufacturing, costs and demands for domestic or foreign food products and economic activities which provide other sources of income. An increasing number of countries are becoming both significant importers and exporters of food. It is customary for countries that are self-sufficient in food or have an excess of food to also import some food products. At the same time, countries that are not self-sufficient in food may export some of their products, especially when these foods are much sought after elsewhere and bring premium prices.

The value of the international food trade recently exceeded US$380 000 million per year (FAO, 1997). In 1994, Europe played a predominant role in the food trade, accounting for almost 50 percent of all imports and 45 percent of all exports. At that time Asia was the second most important contributor to international trade, with 22 percent of food imports and 18 percent of food exports. Countries in Latin America and the Caribbean had gained a significant market share, while Africa and the countries of Central and Eastern Europe and the Commonwealth of Independent States (CIS) held a small share of the international market (see Figure).

Despite the imbalance in favour of the developed countries in the share of international trade, developing countries have been gaining a stronger foothold in global markets. Between 1980 and 1994, the contribution of the food sector of developing countries to the overall world value increased by 3.5 percent, while that of the European Union increased by 4.3 percent and that of North America by only 2.4 percent (UNIDO, 1997).

The World Bank reported that the European Union was the top food importer in 2005, followed at a distance by the USA and Japan. Food is now traded and marketed on a global basis. The variety and availability of food is no longer restricted by the diversity of locally grown food or the limitations of the local growing season. Between 1961 and 1999, there was a 400% increase in worldwide food exports. Some countries are now economically dependent on food exports, which in some cases account for over 80% of all exports.

In 1994, over 100 countries became signatories to the Uruguay Round of the General Agreement on Tariffs and Trade in a dramatic increase in trade liberalization. This included an agreement to reduce subsidies paid to farmers, underpinned by the WTO enforcement of agricultural subsidy, tariffs, import quotas, and settlement of trade disputes that cannot be bilaterally resolved. Where trade barriers are raised on the disputed grounds of public health and safety, the WTO refer the dispute to the Codex Alimentarius Commission, which was founded in 1962 by the United Nations Food and Agriculture Organization and the World Health Organization. Trade liberalization has greatly affected world food trade.

Food marketing brings together the producer and the consumer. It is the chain of activities that brings food from "farm gate to plate". The marketing of even a single food product can be a complicated process involving many producers and companies. For example, fifty-six companies are involved in making one can of chicken noodle soup. These businesses include not only chicken and vegetable processors but also the companies that transport the ingredients and those who print labels and manufacture cans. The food marketing system is the largest direct and indirect non-government employer in the United States.

In the pre-modern era, the sale of surplus food took place once a week when farmers took their wares on market day into the local village marketplace. Here food was sold to grocers for sale in their local shops for purchase by local consumers. With the onset of industrialization and the development of the food processing industry, a wider range of food could be sold and distributed in distant locations. Typically early grocery shops would be counter-based shops, in which purchasers told the shop-keeper what they wanted, so that the shop-keeper could get it for them.

In the 20th century, supermarkets were born. Supermarkets brought with them a self service approach to shopping using shopping carts, and were able to offer quality food at lower cost through economies of scale and reduced staffing costs. In the latter part of the 20th century, this has been further revolutionized by the development of vast warehouse-sized, out-of-town supermarkets, selling a wide range of food from around the world.

Unlike food processors, food retailing is a two-tier market in which a small number of very large companies control a large proportion of supermarkets. The supermarket giants wield great purchasing power over farmers and processors, and strong influence over consumers. Nevertheless, less than 10% of consumer spending on food goes to farmers, with larger percentages going to advertising, transportation, and intermediate corporations.

This is the most updated business to business marketplace for agriculture Industry. Here you can browse all the contact details for leading players of Agriculture Industry. The wide array of agriculture products includes rice, grains, pulses, cereals, wheat etc. Apart from this, fresh fruits, fresh vegetables, frozen fruits and frozen vegetables, dehydrated vegetable, fruit pulp, processed vegetables etc. are also offered by the agricultural sector. In fact the complete list of agricultural products is too wide to mention. But with us it is quite easy to find those products and their suppliers, dealers, exporters etc. Here on just a single click you can get connected with all the buyers and sellers of agriculture industry.

Agriculture, also called farming or husbandry, is the cultivation of animals, plants, fungi, and other life forms for food, fiber, bio fuel and other products used to sustain human life. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the development of civilization. The study of agriculture is known as agricultural science. Agriculture generally speaking refers to human activities, although it is also observed in certain species of ant and termite. The word agriculture is the English adaptation of Latin agricultūra, from ager, "a field", and cultūra, "cultivation" in the strict sense of "tillage of the soil".

Animal husbandry is the agricultural practice of breeding and raising livestock.

Forestry is the science, art, and craft of creating, managing, using, conserving, and repairing forests and associated resources in a sustainable manner to meet desired goals, needs, and values for human benefit.

Fishing is the activity of trying to catch fish. Fish are normally caught in the wild. Techniques for catching fish include hand gathering, spearing, netting, angling and trapping.

Intermediate goods or producer goods or semi-finished products are goods used as inputs in the production of other goods, such as partly finished goods. Also, they are goods used in production of final goods.