Grain Marketing Systems in Argentina, Australia, Canada, and the European Community; Soybean Marketing System in Brazil

ID-76-61: Published: May 28, 1976. Publicly Released: May 28, 1976.

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Marketing systems and agricultural policies of major grain and soybean producing and exporting countries vary with the political orientation toward the agricultural sector. A market system cannot be effective in achieving its objectives, however, if it does not have the faith and confidence of the producer. In comparing the different systems, volume of production, variety of crops, geographical area of production, agriculture infrastructure, and relation of agricultural export earnings to the total economy must be considered. In Canada, Australia, and Argentina, only government wheat or grain boards are authorized to buy wheat and certain feed grains. Canadian and Australian wheat boards are producer oriented. Argentine agricultural policy is geared primarily to benefit the urban population at the expense of the producers. The European Community, in contrast with the other markets studied, produces primarily for domestic consumption and uses exports as a device for disposing of surpluses. When European Community prices are higher than world prices, subsidies are used to generate exports and levies are used to limit imports. Brazil's agricultural policy is directed toward expanding its developing soybean industry and increasing its exports. Brazil gives credit, tax breaks, and other incentives to producers.

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