Trade In Agricultural Commodities Research Articles

Analysis of the competitiveness and complementarity of China-Vietnam bilateral agricultural commodity trade.

Vietnam's agricultural exports to China have remained strong, with the country maintaining its position as the top destination for Agri-products. This article primarily utilizes the Revealed Comparative Advantage (RCA) Index, and Trade Complementarity (TC) index to examine the trade comparative advantage, and the complementary of twenty major agricultural products between China and Vietnam from 2012 to 2021. The study results showed that Vietnam and China frequently exchange agricultural products. Vietnam has more stronger competitiveness than China in terms of agricultural products. China's exports to Vietnam were highly complementary to Vietnam's imports in category 0 whiles Vietnam's exports to China showed strong complementarity with China's imports in category 2. This paper analyzes the complementarity and comparative advantages of agricultural trade between China and Vietnam, and proposes informed suggestions for policy-making to promote agricultural trade between the countries. The proposed suggestions aim to expand agricultural trade between the two countries, reduce the trade imbalance, and achieve mutual benefit and win-win results.

Viral Threats to Fruit and Vegetable Crops in the Caribbean.

Viruses pose major global challenges to crop production as infections reduce the yield and quality of harvested products, hinder germplasm exchange, increase financial inputs, and threaten food security. Small island or archipelago habitat conditions such as those in the Caribbean are particularly susceptible as the region is characterized by high rainfall and uniform, warm temperatures throughout the year. Moreover, Caribbean islands are continuously exposed to disease risks because of their location at the intersection of transcontinental trade between North and South America and their role as central hubs for regional and global agricultural commodity trade. This review provides a summary of virus disease epidemics that originated in the Caribbean and those that were introduced and spread throughout the islands. Epidemic-associated factors that impact disease development are also discussed. Understanding virus disease epidemiology, adoption of new diagnostic technologies, implementation of biosafety protocols, and widespread acceptance of biotechnology solutions to counter the effects of cultivar susceptibility remain important challenges to the region. Effective integrated disease management requires a comprehensive approach that should include upgraded phytosanitary measures and continuous surveillance with rapid and appropriate responses.

The J-curve effect in agricultural commodity trade: an empirical study of South East Asian economies

PurposeIn this paper we examine the validity of the J-curve hypothesis in four Southeast Asian economies (Indonesia, Malaysia, the Philippines and Thailand) over the 1980–2017 period.Design/methodology/approachWe employ the linear autoregressive distributed lags (ARDL) model that captures the dynamic relationships between the variables and additionally use the nonlinear ARDL model that considers the asymmetric effects of the real exchange rate changes.FindingsThe estimated models were diagnostically sound, and the variables were found to be cointegrated. However, with the exception of Malaysia, the short- and long-run relationships did not attest to the presence of the J-curve effect. The trade flows were affected asymmetrically in Malaysia and the Philippines, suggesting the appropriateness of nonlinear ARDL in these countries.Originality/valueThe previous research tended to examine the effects of the real exchange rate changes on the agricultural trade balance and specifically the J-curve effect (deterioration of the trade balance followed by its improvement) in the developed economies and rarely in the developing ones. In this paper, we address this omission.

The role of nature's contributions to people in sustaining international trade of agricultural products

Abstract Nature's contributions to people (NCP) are essential for the production and trade of agricultural, forestry and fishery commodities. Often, there is a spatial disconnect between consumers and the natural systems where the commodities are produced. Traded agricultural products are therefore dependent on nature and NCP in their region of origin. The dependencies of agricultural products on NCP are, however, insufficiently recognised by consumers and are rarely considered in global environmental governance and trade policies along value chains. Here, we synthesise studies highlighting dependencies of agricultural products on NCP in their origin locations to identify opportunities and challenges in quantifying their contribution in sustaining trade flows. We suggest three methodological steps for quantifying NCP dependencies in international agricultural trade: spatial mapping of NCP supply and demand, linking NCP to agricultural trade flows, and tracing trade flows. Each methodological step requires further development and harmonisation to enable a complete accounting of how international agricultural trade depends on NCP. Given the lack of knowledge and data on how NCP support agricultural trade, social and environmental trade‐offs of natural resource management are currently hard to quantify. Quantifying the role of NCP dependencies of traded agricultural products can support their sustainable management, contribute to supply chain accountability and serve as input to sustainable natural resource governance and foster responsibility and equity in supply chains. Read the free Plain Language Summary for this article on the Journal blog.

A proposed Bay-Salam with Takaful and value chain model for financing agriculture in Kano State, Nigeria

PurposeThe purpose of this paper is to propose a model that will demonstrate how the integration of Salam (exclusive agricultural commodity trade) with Takaful (micro-Takaful – a subdivision of Islamic insurance) and value chain can address major challenges facing the agricultural sector in Kano State, Nigeria.Design/methodology/approachThe study conducted a thorough and critical analysis of relevant literature and existing models of financing agriculture in Nigeria to come up with the proposed model.FindingsThe findings indicate that measures undertaken to address the major challenges fail. In view of this, this study proposed Bay-Salam with Takaful and value chain model to solve a number of challenges such as poor access to financing, poor marketing and pricing, delay, collateral requirement and risk issues in order to avail farmers with easy access to finance and provide effective security to financial institutions.Research limitations/implicationsThe paper is limited to using secondary data. Therefore, empirical investigation can be carried out to strengthen the validation of the model.Practical implicationsThe study outcome seeks to improve the productivity of the farmers through enhancing their access to finance. This will increase their level of production and provide more employment opportunities. In addition, it will boost financial inclusion, income generation, poverty alleviation, standard of living, food security and overall economic growth and development.Originality/valueThe novelty of this study lies in the integration of classical Bay-Salam with Takaful and value chain and create a unique model structure which the researchers do not come across in any research that presented it in Nigeria.

Balancing quality with quantity: A case study of UK bread wheat

Societal Impact StatementIncreasing crop productivity is often proposed as a key goal for meeting the food security demands of a growing global population. However, achieving high crop yields alone without meeting end‐use quality requirements is counter to this objective and can lead to negative environmental and sustainability issues. High yielding feed wheat crops in the United Kingdom are a typical example of this. The historical context of UK agricultural industrialisation, developments in plant breeding and wheat end‐use processing are examined. We then outline how employing innovations in plant breeding methods offer the potential to redress the balance between wheat quantity and quality.SummaryBread wheat (Triticum aestivum L.) has historically been an important crop for many human civilisations. Today, variability in wheat supply and trade has a large influence on global economies and food security. The United Kingdom is an example of an industrialised country that achieves high wheat yields through intensive cropping systems and a favourable climate. However, only a minority of the wheat grain produced is of suitable end‐use quality for modern bread baking methods and most wheat produced is fed to livestock. A large agricultural land area and input use dedicated to producing grain for animal rather than human food has wide‐ranging negative impacts for environmental sustainability and domestic food production. Here we present an historical perspective of agricultural and economic changes that have resulted in UK production primarily focussing on wheat quantity over quality. Agricultural intensification, liberalisation of free trade in agricultural commodities, innovations in the milling and baking sector, developments in scientific understanding of genetics and plant breeding, and geopolitical changes have all played a role. We propose that wheat breeding plays a crucial role in influencing these issues and although wheat breeders in the United Kingdom have historically applied the most‐up‐to‐date scientific advances, recent advances in genomics tools and quantitative genetics present a unique opportunity for breeders to redress the balance between quantity and quality.

PhytoPipe: a phytosanitary pipeline for plant pathogen detection and diagnosis using RNA-seq data

BackgroundDetection of exotic plant pathogens and preventing their entry and establishment are critical for the protection of agricultural systems while securing the global trading of agricultural commodities. High-throughput sequencing (HTS) has been applied successfully for plant pathogen discovery, leading to its current application in routine pathogen detection. However, the analysis of massive amounts of HTS data has become one of the major challenges for the use of HTS more broadly as a rapid diagnostics tool. Several bioinformatics pipelines have been developed to handle HTS data with a focus on plant virus and viroid detection. However, there is a need for an integrative tool that can simultaneously detect a wider range of other plant pathogens in HTS data, such as bacteria (including phytoplasmas), fungi, and oomycetes, and this tool should also be capable of generating a comprehensive report on the phytosanitary status of the diagnosed specimen.ResultsWe have developed an open-source bioinformatics pipeline called PhytoPipe (Phytosanitary Pipeline) to provide the plant pathology diagnostician community with a user-friendly tool that integrates analysis and visualization of HTS RNA-seq data. PhytoPipe includes quality control of reads, read classification, assembly-based annotation, and reference-based mapping. The final product of the analysis is a comprehensive report for easy interpretation of not only viruses and viroids but also bacteria (including phytoplasma), fungi, and oomycetes. PhytoPipe is implemented in Snakemake workflow with Python 3 and bash scripts in a Linux environment. The source code for PhytoPipe is freely available and distributed under a BSD-3 license.ConclusionsPhytoPipe provides an integrative bioinformatics pipeline that can be used for the analysis of HTS RNA-seq data. PhytoPipe is easily installed on a Linux or Mac system and can be conveniently used with a Docker image, which includes all dependent packages and software related to analyses. It is publicly available on GitHub at https://github.com/healthyPlant/PhytoPipe and on Docker Hub at https://hub.docker.com/r/healthyplant/phytopipe.

TRADE ANALYSIS OF RED CHILLIES (CAPSICUM ANNUM L) IN RANAH PESISIR DISTRICT, PESISIR SELATAN REGENCY

An efficient agricultural commodity trade system can increase the income of farmers. This study aims to describe the channels and functions of the trading system by each institution as well as to analyze the trading system margin, the share received by farmers, and the efficiency of the red chili marketing channel in Ranah Pesisir District, Pesisir Selatan Regency. The method used is a qualitative and quantitative descriptive method where the data collection uses a survey method. The results showed that the red chili marketing channel pattern uses intermediary traders. That are collectors and retailers. The marketing function performed by farmers and red chili collectors/retailers consists of exchange, physical, and facility functions. The trading system margin on channel one is smaller compared to channel two. The percentage share of the price farmers receive in channel one is higher than in channel two. Channel one is more efficient than channel two. Trading administration institutions must pay attention to the physical function (transportation, storage, and packaging) of distributing red chilies to maintain their quality of red chilies.

The Pest Risk Reduction Scenario Tool (PRReSTo) for quantifying trade-related plant pest risks and benefits of risk-reducing measures

Plant pest risks posed by trade in agricultural commodities are managed through pest risk analysis which involves assessing risk and selecting phytosanitary measures to manage unrestricted risk if it is unacceptably high. Diverse measures can be used to reduce risk. However, calibrating risk management protocols with the level of unrestricted risk is challenging. Agreed methods and user-friendly tools for comparatively evaluating risk-reducing measures in different pest-host systems are lacking. Here, we describe the Pest Risk Reduction Scenario Tool (PRReSTo), a generic Bayesian network model that estimates likely infestation rates of host items in consignments. PRReSTo considers host items’ vulnerability to pest infestation, the pest abundance to which host items are exposed during production, and the individual and cumulative effects of risk-reducing measures aimed at either minimising host vulnerability, pest exposure or infestation rates. We apply a PRReSTo implementation developed for assessing trappable insect pests in horticultural produce to test its versatility. First, we evaluate likely (unrestricted) host infestation rates under different levels of pest exposure and host vulnerability. Next, we evaluate the adequacy of risk-reducing measures under different host infestation scenarios and acceptability thresholds. We find that equivalent risk reduction may be achieved by highly effective individual measures or combinations of measures in a phytosanitary systems approach. The current implementation of PRReSTo is supported by an open access web application to facilitate adoption as a scenario analysis and decision-support tool by industry and regulators.

Agriculture, bioenergy, and water implications of constrained cereal trade and climate change impacts.

International trade increases connections and dependencies between countries, weaving a network of global supply chains. Agricultural commodity trade has implications for crop producers, consumers, crop prices, water and land uses, and other human systems. Interconnections among these systems are not always easy to observe when external impacts penetrate across multiple sectors. To better understand the interactions of non-linear and globally coupled agricultural-bioenergy-water systems under the broader economy, we introduce systematic perturbations in two dimensions, one human (restrictions on agricultural trade) and the other physical (climate impacts on crop yields). We explore these independently and in combination to distinguish the consequences of individual perturbation and interactive effects in long-term projections. We show that most regions experience larger changes in cereal consumption due to cereal import dependency constraints than due to the impacts of climate change on agricultural yields. In the scenario where all regions ensure an import dependency ratio of zero, the global trade of cereals decreases ~50% in 2050 compared to the baseline, with smaller decreases in cereal production and consumption (4%). The changes in trade also impact water and bioenergy: global irrigation water consumption increases 3% and corn ethanol production decreases 7% in 2050. Climate change results in rising domestic prices and declining consumption of cereal crops in general, while the import dependency constraint exacerbates the situation in regions which import more cereals in the baseline. The individual and interactive effects of trade perturbations and climate change vary greatly across regions, which are also affected by the regional ability to increase agricultural production through intensification or extensification.

Analysis of Terms of Trade of Agricultural Commodities in Afghanistan

The agricultural sector plays a leading role in the national exports of Afghanistan. Still, prolonged war and political instability in the country have weakened internal food security, intensified the dependence on imports of food items, and made the country suffer a chronic agricultural trade deficit.This engulfing agricultural trade deficit is attributed to a relative growth in agricultural exports and imports and a relative change in export prices.The present study attempted to examine the exchange competitiveness of traded commodities by estimating a ratio of export prices to import prices.The results showed that the commodity terms of trade of agricultural exports versus agricultural imports of Afghanistan with the rest of the world had increased during the study period. It was suggested that the country focus on producing quality products with a higher market value at a low-costto gain from international trade.

YELLOW SUKUK UNVEILED: HARNESSING AGRICULTURAL COMMODITY TRADE FOR ISLAMIC FINANCE AND PARADIGM SHIFT IN COMMODITY EXCHANGES

Traditional methods dominate agricultural commodity trade, leading to occasional supply surpluses due to inherent periodicity. The lack of adequate storage systems further compounds the challenge, resulting in price volatility and market instability. To address these issues, introducing licensed Warehousing and a Specialized Commodity Exchange system offers an opportunity to integrate agricultural commodity trade with global markets and establish a robust market structure. This integration involves transforming standardized agricultural products held in licensed warehouses into Electronic Warehouse Receipts (e-WhR), which can serve as essential tools for production, consumption, and investment instruments. Moreover, the innovative concept of "Yellow Sukuk" is introduced, representing a groundbreaking financial instrument that can be utilized within the framework of Islamic Capital Markets alongside conventional bank loan transactions. This study examines the evolution of agricultural commodity trade, spot transactions conducted in Commodity Exchanges, and the fundamental aspects of transactions. By embracing these advancements, the agricultural sector can enhance its efficiency, liquidity, and overall market depth while embracing the groundbreaking potential of Yellow Sukuk.

Large gaps in voluntary sustainability commitments covering the global cocoa trade

The production and trade of agricultural commodities, such as cocoa, have important impacts on farmer livelihoods and the environment, prompting a growing number of companies to adopt public commitments to address sustainability issues in their value chains. Though trading companies, who handle the procurement and export of these commodities, are key actors in corporate sustainability efforts, cross-country data on their identity, market share, and adoption of sustainability commitments is lacking. Here, we address this gap for the cocoa sector by compiling detailed shipping data from eight countries responsible for 80% of global cocoa exports, developing a typology of trader types, and assessing their adoption of sustainability commitments. We find that cocoa trading is a highly concentrated market: seven transnational companies handled 62% of the global cocoa trade, with even larger shares in individual cocoa producing countries. The remaining 38% of exports were handled by domestic trading companies and farmer cooperatives. Overall, the adoption of public sustainability commitments is low. We estimated that just over one quarter (26%) of cocoa is traded under some form of sustainability commitment, with gaps arising from their exclusion of indirect sourcing, low adoption rates by domestic traders, and commitment blind spots, notably on forest degradation and farmer incomes. Low rates of traceability and transparency pose a further barrier to the broadscale implementation and monitoring of these commitments: one-quarter of traders report being able to trace at least some of their cocoa back to farmer cooperatives and only half of them openly disclose the identity of their suppliers. We discuss the opportunities and limitations of voluntary sustainability commitments in a highly concentrated market and argue that, to realize visions of sustainable trade, the gaps in commitment coverage must be closed by extending current efforts to smaller traders and indirect suppliers. However, companies must support, coordinate and align with government efforts so that voluntary initiatives are ultimately rendered more transparent and accountable.

Mapping social impacts of agricultural commodity trade onto the sustainable development goals

AbstractWhile international trade in agricultural commodities can spur economic development especially where governance is strong, there are also concerns about the local impacts of commodity production and their distribution on the environment and on people. The sustainable development goals (SDGs), though seeing trade as a means to support their achievement, recognise the need to address potential negative social and environmental impacts. It is therefore important to assess the contribution of international trade to the SDGs in commodity production areas. The environmental impacts of commodity production are widely acknowledged, but much less is known about its social impacts, and how this affects poverty reduction objectives across different dimensions. Impacts on human wellbeing and equity depend on a multitude of factors, including resources, systemic conditions and outputs of production. Through a broad literature review on soy, coffee, cocoa and palm oil, we show how studies have addressed different aspects of these factors and their impacts. The paper demonstrates how efforts by actors in global supply chains are related to a large number of SDGs and their targets. We link the social impacts and factors to the SDGs and a list of potential indicators and variables to guide operationalisation of assessments in new empirical studies.

Impact of minimum support price on pigeonpea growers

The present study was conducted mainly with the objective to study extent Impact of Minimum Support Price on pigeonpea growers. For the study, Washim district was selected purposively as area of pigeonpea under this district was high as compare to other district of Vidarbha region. Karanja (Lad) talukas viz., Lohara, Shaha, Yewata (Bandhi), Wai, Kherda Bu, Donad, Mungutpur, Sohol, Gaywad, Belmandal, Meha, Manabha, Pangavhan, Rahati (Kajba), Bhamdevi, Sukadi, Umbarda (Bazaar), Hiwara (Lahe), Khanapur, Murambi, Nimba (Jahangir), Poha, Palana and Dhamni were selected randomly and 24 villages from each talukas were selected randomly. From each village 5 respondents who were cultivating pigeonpea crop were randomly selected constituting the sample size 120. Ex-post factor research design was used for the study. Majority of the respondents had medium farm experience, were literate, medium land holding, medium annual income, medium source of information, medium extension contact and possessed medium knowledge. The variables like farm experience, education, annual income, social participation, extension contact, source of information had positive significant relationship with impact of minimum support price on pigeonpea growers. Whereas, land holding could not establish any relationship with impact of minimum support price on pigeonpea growers. Based on the recommendations of the Commission for Agricultural Costs and Prices, the Department of Agriculture and Co-operation, Government of India, declares Minimum Support Prices (MSP) for 22 crops before their sowing seasons. The idea behind MSP is to give guaranteed price and assured market to the farmers and protect them from the price fluctuations and market imperfections. The guaranteed price and assured market are expected to encourage higher investment and in adoption of modern farming practices. Further, with the globalization resulting in freer trade in agricultural commodities, it is very important to protect the farmers and their interest.

Export performance and direction of trade of major Agricultural commodities exported from India with special reference to Nepal

Export performance and direction of trade of major Agricultural commodities exported from India with special reference to Nepal

Estão as transições florestais associadas ao comércio internacional de commodities agrícolas?

Abstract Critics of the forest transition theory suggest that it occurs through the displacement of agricultural production abroad while exporting countries suffer agricultural expansion and deforestation. Other studies refute the idea of international trade as the main connection between the occurrence of the forest transition in importing countries and the advance of agricultural frontiers and deforestation in producing countries. Considering this divergence, we assessed whether international trade in agricultural commodities is associated with forest growth in importing countries and deforestation in exporting countries. Data on exports and imports of soy and palm oil among the leading countries in this market were confronted with their historical variation of forest cover between 1990 and 2020. The results suggest that global soy and palm oil markets significantly connect the exporting regions to importing countries that undergo forest transition.

Prevailing Status of Agricultural Trade between India and European Union

This study analysed the current scenario of India-EU trade, composition of trade, growth and instability of agricultural commodities during the period 1997-98 to 2021-22. India’s agricultural export to the EU was US $ 4.7 billion and imported US $ 1.3 billion from the EU in 2021-22. Netherlands, Italy and Germany were three most important EU members for Indian agricultural trade. India mainly exported fishes and marine products, coffee, tea, meat, spices and cotton to the EU. Vegetable oil, raw hides, skin and leather and animal fodder were imported by India from the EU. Compound Annual Growth Rate (CAGR) and Cuddy-Della Valle Index (CDVI) for instability indicated that the total trade between India and the EU have increased consistently with annual growth rate of 6.59 per cent and instability value of 13.97. This provides impetus to policymakers to establish close trade links with counterparts of EU.

Are forest transitions associated with the international trade of agricultural commodities?

Resumo Críticos da teoria de transição florestal sugerem que ela ocorre através do deslocamento da produção agrícola para o exterior, enquanto países exportadores sofrem expansão da agricultura e desmatamento. Outros estudos refutam a ideia do comércio internacional como principal elo entre a ocorrência da transição florestal nos países importadores e o avanço das fronteiras agrícolas e desmatamento nos países produtores. Considerando tal divergência, buscou-se avaliar se o comércio internacional de commodities agrícolas está associado ao crescimento florestal em países importadores e ao desmatamento em países exportadores. Dados das exportações e importações de soja e óleo de palma entre os principais países envolvidos nesse mercado foram confrontados com sua variação histórica da cobertura florestal entre 1990 e 2020. Os resultados sugerem que os mercados globais de soja e óleo de palma associam significativamente as regiões exportadoras aos países importadores que passam pela transição florestal.

АДАПТИВНЕ СТРАТЕГУВАННЯ ПОВЕДІНКИ АГРОТРЕЙДЕРІВ НА РИНКАХ ЄС

In today's globalised world, agri-trading plays a crucial role in ensuring livelihoods and development for agricultural producers and individuals and legal entities involved in the food supply chain. The purpose of the article is to study the main approaches to adaptive strategising of agri-traders' behaviour in the EU markets. The author identifies typical components that characterise the structure of business models of leading agro-trading companies. The problems faced by agro-traders and all those involved in the agricultural commodity trade system are identified. The transformation processes in the system of the value chain ‘production and sale of agricultural products’ are substantiated. The key positions of adaptive strategies for medium-sized agro-traders, which are in the most difficult competitive conditions, are substantiated. It is determined that adaptive strategising of agro-trading companies' behaviour is an objective condition for their development at the present stage. This approach to business management and development is based on constant adaptation to changes in the external environment. The main features of adaptive strategising of agro-traders' behaviour are identified. These include constant monitoring of the market, competitors, consumers and technological trends, which allows identifying potential threats and opportunities; development of strategic plans; structure and processes of the organisation, which should allow for quick decision-making and implementation of changes; stimulation of innovation and continuous training at all levels of the organisation; availability of adaptive thinking skills among company leaders. As a result, adaptive strategising of agri-traders' behaviour can reduce risks by responding quickly to changes; accordingly, organisations that adapt to changes faster can outperform competitors. Flexibility in planning and implementation will allow companies to optimise resources and increase the efficiency of business processes. Adaptive strategising, which is systematically implemented by agri-trading companies, requires a high level of coordination and change management; significant investments in technology and training, and often requires changes in corporate culture, which is often a complex and lengthy process. As a result, it is the adaptive strategising of agro-traders' behaviour that is critical for successful business development in today's dynamic and unstable market environment.