Dynamics

Food security is dependent on moving the agricultural commodities our members’ trade and process.  As much as 30 percent of all grain and oilseeds and their associated products produced globally move into international trade – a trade that is critically important to farmers, ranchers, food processors, and exporters, and consumers across the globe. For example, in 2019 over $100 billion worth of grains and oilseeds were exported from North America, and in the United States, exports of the goods produced by NAEGA members generate over 8,000 jobs for every billion dollars worth of grains and oilseeds traded.

Providing grain and other agri-bulks in the global marketplace is both a competitive and capital-intensive industry. Since the margin of profit to be earned from moving a ton of grain can be quite small, exporters depend upon moving large volumes very quickly. They seek to achieve an economy of scale that lowers their average fixed costs per unit of volume handled, provides operating flexibility, increases bargaining power in chartering for shipping, and improves the services they can provide worldwide.

The resilient, reliable, responsive, and responsible businesses of our Members are influenced by many factors.  Some drivers that frame global supply,  demand, and competition include:

• Trade liberalization and opening of markets, in particular the reduction of both tariff and non-trade barriers.
• Political Conflicts, Economic growth, and Social Stability.
• Regulatory actions including sanitary, phytosanitary risk management, and anti-dumping actions.
• Shifts in Consumer preferences.
• Market and regulatory actions and concerns of  over the value, safety, and morality of production technologies.
• Competitiveness and Sustainability of Food Systems and Infrastructure.
• Providing for adequate fungibility.