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The Changing Face Of The U.S. Grain System: Differentiation And Identity Preservation Trends

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  • Elbehri, Aziz

Abstract

This report examines current trends in the U.S. grain industry. Many identity preservation(IP) grain systems have emerged recently, driven by a confluence of supply and demand factors. IP grain requirements for specific production protocols, marketing channels, and quality assurance depend on whether the crops are trait-specific, non-GM (genetically modified), organic, or pharmaceutical. Cost structures vary according to the relative importance of segregation and risk management. High information management, greater market coordination, and frequent reliance on contracts characterize IP grains. IP grain markets are also inherently riskier, with volatile supply, inelastic demand, and fluctuating price premiums. Increasing grain differentiation is altering the marketing structure of the U.S. grain industry and creating possible roles for government policy, particularly in market facilitation, standard setting, and regulations affecting food safety and biosecurity.

Suggested Citation

  • Elbehri, Aziz, 2007. "The Changing Face Of The U.S. Grain System: Differentiation And Identity Preservation Trends," Economic Research Report 7185, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersrr:7185
    DOI: 10.22004/ag.econ.7185
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    References listed on IDEAS

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    1. William Chambers & Robert P. King, 2002. "Changing Agricultural Markets: Industrialization and Vertical Coordination in the Dry Edible Bean Industry," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(2), pages 495-511.
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    3. Vandenberg, Jennifer M. & Fulton, Joan R. & Dooley, Frank J. & Preckel, Paul V., 2000. "Impact of Identity Preservation of Non-GMO Crops on the Grain Market System," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 01, pages 1-8, May.
    4. Wilson, William W. & Dahl, Bruce L., 2002. "The Logistical Costs Of Marketing Identity Preserved Wheat," Agribusiness & Applied Economics Report 23526, North Dakota State University, Department of Agribusiness and Applied Economics.
    5. Nicholas Kalaitzandonakes & Richard Maltsbarger & James Barnes, 2001. "Global Identity Preservation Costs in Agricultural Supply Chains," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 49(4), pages 605-615, December.
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    Cited by:

    1. Robert D. Weaver, 2008. "Collaborative pull innovation: origins and adoption in the new economy," Agribusiness, John Wiley & Sons, Ltd., vol. 24(3), pages 388-402.
    2. Karen Hills & Jessica Goldberger & Stephen Jones, 2013. "Commercial bakers and the relocalization of wheat in western Washington State," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 30(3), pages 365-378, September.
    3. Francesca Galli & Fabio Bartolini & Gianluca Brunori, 2016. "Handling Diversity of Visions and Priorities in Food Chain Sustainability Assessment," Sustainability, MDPI, vol. 8(4), pages 1-21, March.

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