World Consumption and Production
What is demand?
Demand is the willingness and the ability to buy something.
List the countries involved in the major “triangle” of soybean trade.
United States, Brazil, and China
What is the main destination for soybeans exported from South America?
China
What is NPK?
Nitrogen (N), Phosphorus (P), and Potassium (K)
What is free trade?
Free trade is a market model in which trade in goods and services between or within countries flows without any restrictions imposed by the government
In which regions of the world will the population continue to grow the most?
Asia and Africa
For what does China use the soybeans and corn for that are purchased from Brazil and the US?
Feed livestock (pork)
What is the biome with the largest agricultural area in Brazil?
Cerrado (Brazilian savanna)
List two environmental concerns around the use of fertilizers.
Water pollution, soil degradation, and greenhouse gas emissions.
What are the protectionism goals?
Protectionism attempts to protect domestic businesses and living wages.
Consumption depends mainly on...
Population, income, and consumer preferences
What is crushing in the soybean industry?
Crushing is a process that produces soybean meal and soybean oil
What are the key characteristics of the second crop corn (called safrinha) in Brazil?
Market Demand: Safrinha is crucial for Brazil’s overall corn production, meeting domestic demand and contributing significantly to exports.
Growth Cycle: It has a shorter growth cycle, maturing in about 90 to 110 days, which allows for a quick turnaround.
Increasing Productivity:significant as it allows farmers to maximize land use and production efficiency
Indicate two of the technologies that caused agricultural yields to increase.
Genetic improvements, NPK application, pesticides use, investment in research and development, mechanization, etc.
List two trade agreements between countries.
European Union (EU)
US – Mexico – Canada Agreement (ex-Nafta)
Mercosur (Brazil, Argentina, Paraguay, and Uruguay)
List at least three of the five determinants that impact consumption demand.
What is ending stocks on a WASDE balance sheet?
Ending stocks are the holding of the inventory at the end of the year.
List at least two challenges for Brazilian agriculture to continue growing.
Transportation: Brazil is trying to reduce its dependence on trucks.
Storage: Crop production in Brazil outpaces storage capacity.
Who were the big 6 in the seed industry? And who are the big 4 now?
BIG 6: Bayer, Monsanto, Dow, Dupont, Syngenta, and BASF.
BIG 4: Bayer, Corteva, Syngenta, BASF.
What is WTO and when did China join it?
World Trade Organization (WTO)
China joined WTO in 2001.
What are the regions with possibilities for agricultural expansion?
South America, Africa, and Ukraine
What does acronyms PSD and WASDE mean?
Production, Supply and Distribution (PSD) and World Agricultural Supply and Demand Estimates (WASDE)
Why Brazil is likely to remain the world leader in soybean production?
Brazil has more arable land than any other country in the world.
Brazil has increased the planted area every year.
List two advantages and two disadvantages of M&A in the seed industry.
Advantages:
Economies of scale bring technological advancements.
Movement of genetics to all parts of the world
surplus grain production
Disadvantages:
The pricing of seed products has increased a lot
Anti-competitive tendencies by parties
Barriers to entry are supreme
List two mechanisms that act as barriers to trade.
* Sanitary and phytosanitary measures,
* Technical barriers of trade (labeling requirements)
* Agricultural subsidies