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2019 Autumn - Disruptions in agricultural trade

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FPJ1601I - Kingwell, R (2019), Disruptive change in the international grain trade: implications for Australia

FPJ1601I - Kingwell, R (2019), Disruptive change in the international grain trade: implications for Australia, in Farm Policy Journal, vol. 16, no. 1, Autumn 2019, pp. 55-62, Surry Hills, Australia.

Disruption to the international trade of grain can advantage or disadvantage Australian grain businesses. Several examples of such disruptions are described in this article, such as climate variation, changes in government policies and technical innovation. However, the main disruption highlighted is the emergence of low-cost sources of grain exports. South America and the Black Sea region are increasingly major sources of grain exports, reducing the reach and market share of Australian grain exports and restricting grain price upsides. In under two decades these regions have emerged to be major sources of several international traded grains, including wheat. This paper outlines some potentially useful responses to the trade challenges caused by the emergence of these competitors. Six possible responses are discussed, ranging from farm-level responses to whole-of-industry coordinated responses.

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