Trends in the world flour and wheat trade
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CTA. 2003. Trends in the world flour and wheat trade. Agritrade, June 2003. CTA, Wageningen, The Netherlands.
Permanent link to this item: http://hdl.handle.net/10568/52944
According to the April 2003 report of the USDA Foreign Agricultural Service...
According to the April 2003 report of the USDA Foreign Agricultural Service 'world flour trade has dropped 30% in just the past seven years' as the pattern of trade has changed. Privatisation and an expansion of capacity of milling facilities in major markets has 'shifted demand from imported flour to imported wheat'. As a consequence 'competition has increased for the shrinking flour market'. Regional flour suppliers are increasing their market share by 'providing quicker delivery, smaller shipments and cheaper transportation to quality sensitive buyers'. As a consequence 'the EU - once the world's dominant flour supplier - has seen its exports drop nearly 60%. Many French mills, which were built near ports for export, have slashed capacity in half or closed, whereas a third of Italy's mills have already closed. Comment: This trend is most noticeable in markets in north Africa, the middle east, India and the former Soviet Union. This means that the ACP flour market is increasing in importance as the European milling industry faces a major crisis. ACP countries could find themselves increasingly targeted by EU flour suppliers with substantial surplus capacity. In addition, developments in the global flour trade throw current French proposals for a temporary cessation of export refunds on agricultural exports to African markets into a different light. If such a cessation were to apply only to basic agricultural products and not to other products in the value chain then this proposal could provide significant relief to a depressed French milling sector.