EXPORT OPPORTUNITY ANALYSIS - GLOBAL CORN MARKET
Competitive Landscape
Since 2012, the fastest-growing corn
exporters among countries are Thailand (up 109.9%), Mexico (up 104.9%), Russia
(up 49.8%), Canada (up 12.7%), and Bulgaria (up 10.3%). The countries that
indicate decline in exported corn sales include Hungary (down -48.3%), South
Africa (down -38.7%), Paraguay (down -38.5%), and Ukraine (down -37.5%). United
States incurs the highest surplus in the global trade of corn, which represents
its strong competitive advantage for this product category. On the other hand,
Japan generates the highest deficit in the international trade market of corn,
but the nation’s strong competitive disadvantage for corn signals opportunities
for corn-supplying nations that help fulfill increasing consumer demand.
Key Trends
Consumption. U.S. corn used to produce U.S. ethanol generated 251 million bushels of corn per year while DDG-adjusted corn that excludes ethanol produced 25 million bushels of corn. Therefore, DDG-adjusted corn for ethanol accounted for 90% of the growth in U.S. consumption of corn between 1996-2000 and 2010-2014. Globally, the annual growth of corn consumption declined from 891 million bushels per year to 665 million bushels per year when DDG-adjusted U.S. corn did not include ethanol. DDG-adjusted U.S. corn for ethanol represented 30% of the world’s growth in corn consumption between 1996-2000 and 2010-2014.
Production. The United States, China, and Brazil
accounted for 63% of global increase in production of corn between 1996-2000
and 2010-2014. Production can increase
either because yield or harvested acres increased. Globally, more harvested
acres accounted for 48% of the increase in production between 1996-2000 and
2010-2014. Therefore, increases in yield and harvested acres were equally
important sources of growth in corn production worldwide. The U.S. was similar
to the world, with the growth in harvested acres representing 51% of the
increase in production. China was more dependent on harvested acres, which
accounted for 62% of its increase in production. On the contrary, Argentina
and, especially Brazil, were more dependent on yield, as their increase in
harvested acres accounted for only 34% and 17%, respectively, of their increase
in production.
Fun Facts
1.
There are over 3,500 distinct uses for corn products.
2.
A bushel of corn can sweeten 400 cans of soft drink like
Coca-Cola and Pepsi.
3.
Corn is processed and utilized as a major component in
several food items like cereals, peanut butter, potato chips, coups, cooking
oil, ice cream, salad dressing, and chewing gum.
4.
Up to 2012, the United States produces 40% of the world’s
total harvest, making it the largest corn producer in the world (273,832,130
tonnes produced in 2012).
Sources:
http://www.worldstopexports.com/corn-exports-country/http://www.sciencekids.co.nz/sciencefacts/food/corn.html
http://farmdocdaily.illinois.edu/pdf/fdd210515.pdf
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