Maize Trade Research Articles

Out of America: tracing the genetic footprints of the global diffusion of maize

Maize was first domesticated in a restricted valley in south-central Mexico. It was diffused throughout the Americas over thousands of years, and following the discovery of the New World by Columbus, was introduced into Europe. Trade and colonization introduced it further into all parts of the world to which it could adapt. Repeated introductions, local selection and adaptation, a highly diverse gene pool and outcrossing nature, and global trade in maize led to difficulty understanding exactly where the diversity of many of the local maize landraces originated. This is particularly true in Africa and Asia, where historical accounts are scarce or contradictory. Knowledge of post-domestication movements of maize around the world would assist in germplasm conservation and plant breeding efforts. To this end, we used SSR markers to genotype multiple individuals from hundreds of representative landraces from around the world. Applying a multidisciplinary approach combining genetic, linguistic, and historical data, we reconstructed possible patterns of maize diffusion throughout the world from American "contribution" centers, which we propose reflect the origins of maize worldwide. These results shed new light on introductions of maize into Africa and Asia. By providing a first globally comprehensive genetic characterization of landraces using markers appropriate to this evolutionary time frame, we explore the post-domestication evolutionary history of maize and highlight original diversity sources that may be tapped for plant improvement in different regions of the world.

Global Maize Trade and Food Security: Implications from a Social Network Model

In this study, we developed a social network model of the global trade of maize: one of the most important food, feed, and industrial crops worldwide, and critical to food security. We used this model to analyze patterns of maize trade among nations, and to determine where vulnerabilities in food security might arise if maize availability was decreased due to factors such as diversion to nonfood uses, climatic factors, or plant diseases. Using data on imports and exports from the U.N. Commodity Trade Statistics Database for each year from 2000 to 2009 inclusive, we summarized statistics on volumes of maize trade between pairs of nations for 217 nations. There is evidence of market segregation among clusters of nations; with three prominent clusters representing Europe, Brazil and Argentina, and the United States. The United States is by far the largest exporter of maize worldwide, whereas Japan and the Republic of Korea are the largest maize importers. In particular, the star-shaped cluster of the network that represents U.S. maize trade to other nations indicates the potential for food security risks because of the lack of trade these other nations conduct with other maize exporters. If a scenario arose in which U.S. maize could not be exported in as large quantities, maize supplies in many nations could be jeopardized. We discuss this in the context of recent maize ethanol production and its attendant impacts on food prices elsewhere worldwide.

Aflatoxin Regulations in a Network of Global Maize Trade

Worldwide, food supplies often contain unavoidable contaminants, many of which adversely affect health and hence are subject to regulations of maximum tolerable levels in food. These regulations differ from nation to nation, and may affect patterns of food trade. We soughtto determine whether there is an association between nations' food safety regulations and global food trade patterns, with implications for public health and policymaking. We developed a network model of maize trade around the world. From maize import/export data for 217 nations from 2000–2009, we calculated basic statistics on volumes of trade; then examined how regulations of aflatoxin, a common contaminant of maize, are similar or different between pairs of nations engaging in significant amounts of maize trade. Globally, market segregation appears to occur among clusters of nations. The United States is at the center of one cluster; European countries make up another cluster with hardly any maize trade with the US; and Argentina, Brazil, and China export maize all over the world. Pairs of nations trading large amounts of maize have very similar aflatoxin regulations: nations with strict standards tend to trade maize with each other, while nations with more relaxed standards tend to trade maize with each other. Rarely among the top pairs of maize-trading nations do total aflatoxin standards (standards based on the sum of the levels of aflatoxins B1, B2, G1, and G2) differ by more than 5 µg/kg. These results suggest that, globally, separate maize trading communities emerge; and nations tend to trade with other nations that have very similar food safety standards.

NON-TARIFF BARRIERS IN EAC CUSTOMS UNION: IMPLICATIONS FOR TRADE BETWEEN UGANDA AND OTHER EAC COUNTRIES

A key objective for the adoption of East African Community (EAC) Customs Union was to enhance economic gains through elimination of tariffs and non-tariff barriers (NTBs) within the member states. This study has established that several NTBs continue to exist, and some have persisted. The NTBs that have persisted for more than three years include a long list of customs documentation requirements, cumbersome formalities, and limited testing and certification arrangements. Other NTBs that still exist include: un-standardized weighbridges; several road blocks; lack of recognition of individual country’s standards; and the existence of several un-harmonised standards. The simulation results of spatial equilibrium model of maize trade with and without NTBs show that at the EAC level there are positive production, trade and welfare implications attributable to elimination of NTBs in intra-regional maize trade. The gains are greatest in trade and production in Uganda compared to Kenya and Tanzania. To eliminate the existing NTBs and to reduce the possibility of new ones being created, first and foremost, the EAC countries need to design effective mechanisms for identifying and verifying information about NTBs and ensuring their elimination. This will require giving the EAC Secretariat the mandate to compel individual countries to eliminate any identified NTB and to ensure that no new ones are created. Second, policy and legislative decisions made by, for example, Council of Ministers should be communicated in time for effective implementation...

Non-Tariff Barriers in the EAC Customs Union: Implications for Trade in Uganda with Other EAC Countries

A key objective for the adoption of East African Community (EAC) Customs Union was to enhance economic gains through elimination of tariffs and non‐tariff barriers (NTBs) within the member states. This study has established that several NTBs continue to exist, and some have persisted. The NTBs that have persisted for more than three years include a long list of customs documentation requirements, cumbersome formalities, and limited testing and certification arrangements. Other NTBs that still exist include: un‐standardized weighbridges; several road blocks; lack of recognition of individual country’s standards; and the existence of several un‐harmonised standards. The simulation results of spatial equilibrium model of maize trade with and without NTBs show that at the EAC level there are positive production, trade and welfare implications attributable to elimination of NTBs in intra‐regional maize trade. The gains are greatest in trade and production in Uganda compared to Kenya and Tanzania. To eliminate the existing NTBs and to reduce the possibility of new ones being created, first and foremost, the EAC countries need to design effective mechanisms for identifying and verifying information about NTBs and ensuring their elimination. This will require giving the EAC Secretariat the mandate to compel individual countries to eliminate any identified NTB and to ensure that no new ones are created. Second, policy and legislative decisions made by, for example, Council of Ministers should be communicated in time for effective implementation. Broadly, the Government of Uganda (GoU) needs to examine the trade barriers identified in this study and remove those that are internally instituted while working with the rest of the member states to remove those externally imposed. In the specific and medium term, standards should be harmonized and enforcement of compliance be transferred to one regional body, such as EAC Bureau of Standards. In the short run, the EAC countries should develop a mutual recognition of standards across member countries. Furthermore, EAC member states and other key stakeholders such as private sector associations need to launch public awareness campaigns to disseminate information about customs union and its economic opportunities. There is also a need for full commitment to the implementation of customs union protocol by all the member states

The effects of market factors and government policies on maize marketing in Iran

Maize plays a unique role in the agricultural economic of world. It is a key stable crop which is used in a wide range of food industries and as a customary livestock feed in Iran. Also, it is one of the most widely traded commodities in terms of absolute import value and the ratio of its amount to the total production value. Most of the traded maize in Iran is used for feed and smaller amounts are for industrial and food uses. Agriculture policy reforms in Iran have generated higher disposable incomes and increase livestock production that worked to expand maize domestic consumption faster than domestic production. In order to investigate the effect of government agriculture policies on maize market and trade restriction in Iran during 1989 to 2006 period, in this paper the advanced simultaneously econometric model is used in order to study the acreage planted, domestic demand and production, import demand and marketing margin functions. The results showed that government policies were ineffective. Therefore price support policy was not efficient for the maize market regulation. Furthermore, since government intervention in the market did not result stabilization and regulation of the maize market in practice, so the support from private sector and less restriction on trade are suggested.

Analysis of virtual water flows associated with the trade of maize in the SADC region: importance of scale

Abstract. The concept of virtual water encourages a country to view agricultural crops in terms of the amount of water required to produce those crops, with a view to implementing trading policies that promote the saving of scarce water resources. Recently, increased attention has focussed on partitioning the virtual water content of crops into green and blue water (derived from rainfall and irrigation, respectively) as the latter has higher opportunity costs associated with its use and therefore impacts directly on scarcity. Maize is the most important crop traded within the SADC region. South Africa is the largest producer and exporter of maize, with the majority of its exports destined for other SADC countries. In comparison to other SADC countries, South Africa produces maize relatively efficiently, with a low virtual water content and a high green (868 m3 t−1) to blue (117 m3 t−1) water ratio. The blue water content is however higher than for maize produced in all other SADC countries, with the exception of Namibia (211 m3 t−1). Current trade patterns therefore result in a net expenditure of blue water (66×106 m3), almost all of which is exported by South Africa (65×106 m3). South Africa is one of the most water scarce countries in the region and analysis of virtual water flows indicates that current SADC maize trading patterns are influenced by national productivity as opposed to water scarcity. The virtual water content of maize was estimated for each of South Africa's nineteen Water Management Area's (WMA) and used as a proxy to represent water use efficiency for maize production. The virtual water content varied widely across all of the WMAs, ranging from 360 m3 t−1 in the Ustutu Mhlatuze to 1000 m3 t−1 in the Limpopo. A comparison of the virtual water content and production of maize (expressed as a percentage of the total national production) identified those WMAs where maize production is highly water inefficient (e.g. Lower Orange and Limpopo WMAs). Results suggest that, while a national estimate of the virtual water content of a crop may indicate a relatively efficient use of water, an analysis of the virtual water content at smaller scales can reveal inefficient use of water for the same crop. Therefore, analysis of the virtual water content of crops and trading of agricultural products at different spatial scales (i.e. regional, national and WMA) could be an important consideration within the context of water allocation, water use efficiency and alleviation of water scarcity.

The impact of non-tariff barriers on maize and beef trade in East Africa

The East African Customs Union was established in 2005 with the aim of increasing intraregional trade. The Customs Union protocol commits member states to eliminate non-tariff barriers (NTBs) to intraregional trade. However, several NTBs are still applied by member states. This study identifies the existing NTBs on maize and beef trade and quantifies their impact on trade and welfare of EAC citizens using a Spatial Equilibrium Model (SEM). Data on NTBs were collected from traders and transporters of maize and beef cattle in East Africa. Roadblock checks, bribes and custom rules and procedures were identified as the main NTBs to trade. The SEM model shows that a 50% reduction of the cost of NTBs, or their complete elimination would improve social welfare in EAC. The study recommends: removal of the NTBs; improved efficiency in administrative procedures; and establishment of a monitoring system to track the effectiveness of implemented initiatives to remove barriers to trade.

Regional trade, government policy and food security: Recent evidence from Zambia

Given heavy dependence on rainfed maize production, countries in East and Southern Africa must routinely cope with pronounced production and consumption volatility in their primary food staple. Typical policy responses include increased food aid flows, government commercial imports and stock releases, and tight controls on private sector trade. This paper examines recent evidence from Zambia, using a simple economic model to assess the likely impact of maize production shocks on the domestic maize price and on staple food consumption under alternative policy regimes. In addition to an array of public policy instruments, the analysis evaluates the impact of two key private sector responses in moderating food consumption volatility – private cross-border maize trade and consumer substitution of an alternate food staple (cassava) for maize. The analysis suggests that, given a favorable policy environment, private imports and increased cassava consumption together could fill roughly two-thirds of the maize consumption shortfall facing vulnerable households during drought years.

Ensuring Food Security – A Case for ASEAN Integration

The ASEAN member countries can be grouped into three sub-groups, each of which exhibits a distinct pattern with respect to food security issues. The first group is made up of the relatively food-secure countries of Singapore and Brunei. The second group consists of Malaysia, Thailand, Philippines, Indonesia, and Vietnam. In these countries, except for Vietnam, agriculture has contributed a declining share in GDP, employment, and international trade. In addition, food habits in these countries have changed dramatically in recent decades. The third group is composed of Cambodia, Lao PDR, and Myanmar—economies in transition that require special attention. A simple exercise shows that the area can collectively achieve food security via trade in rice and maize. Trade facilitation measures and the harmonization/equivalency of food regulation and control standards will reduce the cost of trade in food products. While specialization and revealed comparative and competitive indices point to complementarities between trade patterns among the ASEAN member countries, intra-ASEAN trade in agriculture is quite small. However, integration could address this problem. Further, if integration is to be used as a venue for ensuring food security, the member countries must agree on what food security collectively means to them, and what food items are important to each of them and the region, in general, so that regional integration and cooperation under the auspices of ASEAN can be promoted.

Inland foragers and the adoption of maize agriculture in the upper Great Lakes of North America

This paper considers the late prehistoric adoption of maize agriculture by coastal groups in the upper Great Lakes of North America. The goal is to investigate the social and economic consequences on inland hunter-gatherers that do not adopt agriculture. In addition to the expected restructuring of seasonal and geographical exploitation patterns, the inland groups develop a new regional aggregation ritual that fosters exchange and alliances with the coastal farmers. The central focus of this new social institution is a series of large circular earthworks that, in combination with ephemeral structures, burial mounds and clusters of cache pits, form a complex ritual precinct. The interactions surrounding this aggregation ritual permitted inland huntergatherers indirectly to gain access to rich coastal resources that could no longer be exploited directly and also provided a means for the acquisition of maize and durable trade materials.

Larger Grain Borer in Africa; A History of Efforts to Limit its Impact

The story of Prostephanus truncatus in Africa is described from its original outbreak in Tanzania in the late 1970s to the present day. Information is given on the differing control methods put in place by infested countries and how co-ordination of local programmes and inputs from technical assistance agencies was approached by an agencies. The influence of changes in development thinking on the management of storage pests is considered. The current status of P. truncatus is addressed, inlcuding its impact on the international maize trade, particularly that provided for famine relief. The introduction of Teretrius nigrescens as a biological control agent is described. We also provide some milestones in efforts to manage the pest, describe the effectiveness of pest management in terms of cost benefit and suggest some new avenues that may lead to a sustainable reductioning in P. truncatus in Africa.

MAIZE MARKETING AND PRICING IN LESOTHO: IMPLICATIONS FOR POLICY REFORM / SAMEVATTING: MIELIEBEMARKING EN -PRYSBEPALING IN LESOTHO: IMPLIKASIES VIR BELEIDSHERVORMING

A study was conducted during 1994–1995 amongst policy makers, government officials, retailers and millers in Lesotho to review the maize marketing system and procedures for setting maize prices at producer, mill-gate and consumer levels. Set prices distort price signals which influence decisions to allocate and distribute resources to provide goods and services for markets. Lesotho is a net importer of maize grain, the major staple, implying that maize pricing and marketing policy affect food security. Results indicate flexible informal marketing channels, fixed formal marketing channels and declining real producer, mill-gate and consumer prices in recent years Falling real South African Maize Board export grain prices and evidence of subsidies to commercial Lesotho mills explain these price trends. Changes to the one channel formal marketing system and nationally administered price structure that would encourage an open market system with less restrictive interregional maize trade are recommended.

Forthcoming

Ethnic diversity is associated with poorer economic development, but why? I argue that market segmentation is one mechanism linking diversity to economic underdevelopment: when ethnic groups are geographically segregated and trust is concentrated within groups, markets will be tend to be segmented along ethnic lines. I evaluate this argument using maize price data from seventy Malawian markets over 14 years and combine it with census data on the spatial distribution of ethnic groups. I find that maize price differences—a key indicator of market segmentation—are indeed larger for ethnically dissimilar markets, even after taking sub-national administrative borders geographic barriers, and climatic differences into account. These statistical findings are complemented by interview data from farmers and traders in three markets across Malawi, which highlight the centrality of trust in small-scale maize trading, as well as a preference for coethnic trading partners. Together, these findings suggest that ethnic diversity, and ethnoregional segregation in particular, can have a negative impact on market integration, an important driver of food security and long-term economic development.