THE CHANGING FACE OF THE U.S. GRAIN SYSTEM: DIFFERENTIATION AND IDENTITY PRESERVATION TRENDS

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.


Issue Date:
2007
Publication Type:
Report
PURL Identifier:
http://purl.umn.edu/7185
Total Pages:
32
Series Statement:
Economic Research Report
35




 Record created 2017-04-01, last modified 2017-08-23

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