We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What Is the Grain Trade?

By Peter Hann
Updated: May 17, 2024
Views: 7,394
Share

The grain trade is the sale or trade of grains and cereal crops, such as wheat and rice. It has existed since human civilization began and cities arose, because demand for grains in cities meant farmers could grow crops and transport their harvest to cities as cash crops rather than just growing food for their own consumption. Cereals initially may have been bartered but, with the development of a money economy, cereals began being sold for cash on the grain market. Owing to the difficulty and cost of transporting grain, much of human history has seen cereals being taken from farms to nearby market towns for sale. The modern grain trade is characterized by developing globalization, with farms increasing in size and transportation and export of cereals expanding on an international scale.

Modern production of crops such as corn, wheat, and barley in Europe and North America takes place on an industrial scale. Grain is transported in bulk in large trucks or by rail to seaports or inland dry ports for export. This large-scale production in the grain trade has given agricultural producers in the developed world an advantage stemming from economies of scale augmented by government subsidies. This has led to problems between developing and developed countries.

The international grain trade has been the subject of negotiations between developed and developing countries in the World Trade Organization (WTO). Negotiations have the objective of phasing out subsidies for agricultural exports and cutting the support given by governments to their agricultural producers. Tariffs and subsidies may have a distorting effect on international trade and are a problem for developing countries, which cannot compete in the protected markets of Europe and North America. Developing countries aim to keep agricultural tariffs in place, because the tariffs protect their domestic farmers from international competition in the grain trade, while the major exporters in exporting countries such as the U.S., Canada and Australia have an interest in securing tariff cuts.

Other issues that may affect the grain trade on an ongoing basis include the increasing production of biofuel — which relies on corn and other plants — that may take large areas of land away from food production and reduce food inventories. The effects of climate change and unpredictable weather conditions are also a cause for concern. Other important issues include the controversy over genetically modified plant varieties, the increasing orientation of consumers to locally produced and organic food, and issues of food security.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Editors' Picks

Discussion Comments
Share
https://www.wisegeek.net/what-is-the-grain-trade.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.