A State Trading Enterprise for Grains in Russia? Issues and Options

The impact of state trading enterprises (STEs) on domestic and international grain markets has been studied extensively over the years, generating a considerable body of theoretical and empirical evidence. The aim of this note is to draw on this body of evidence to analyze possible options for Russia's future state involvement in grain trade. The note covers the following three parts: i) outline of the potential economic impacts of STEs in grain trade from an economic perspective; ii) review of some of the global experience with STEs that are involved in grain exports; and iii) evaluation of options for state involvement in grain trade in Russia. The coverage in this note is limited to grains and to the impacts of STEs in countries that are net exporters of grain. Of the major grains, the note focuses on wheat which is by far the most important Russian export grain. Importing STEs are much more numerous than exporting STEs worldwide. However, unlike Ukraine, which has jumped between net export and net import situations for wheat as recently as 2003/04, it appears that Russia has become a consistent exporter since the beginning of this decade, even in years with relatively poor crop conditions. The note is further limited to the analysis of STEs and not grain market regulation in general (i.e. market and price support, income support for grain producers). However, as is discussed, such regulation can be used to help an STE pursue certain objectives by enhancing its market power, and STEs are generally implemented as part of an overall grain market regulation strategy.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2009-10
Subjects:	AGENCY PROBLEMS, AGRICULTURAL EXPORTS, AGRICULTURE, ANIMAL FEED, ARBITRAGE, ASSET VALUE, ASSETS, AVERAGE COSTS, AVERAGE PRICE, BARLEY, BUDGETARY SUPPORT, CARTEL, CEREAL PRICES, CEREALS, CIVIL CODE, CLIMATIC CONDITIONS, COARSE GRAINS, COLLUSION, COMMODITIES, COMMODITY, COMPETITION POLICY, COMPETITIVENESS, CONSUMER PRICES, CONSUMERS, CONTESTABLE MARKET, COOPERATIVES, CORN, COST STRUCTURES, CREDIT RATING, CROP, CROPS, CURRENCY, CUSTOMER SERVICE, DEMAND CURVE, DIVERSIFIED MARKET, DOMESTIC MARKET, DOMESTIC MARKETS, DOMESTIC PRICES, DURUM WHEAT, ECONOMIC COOPERATION, ECONOMIC PERFORMANCE, ECONOMIES OF SCALE, EQUAL SHARES, EXCESS SUPPLY, EXCHANGE RATE, EXCLUSIVE RIGHTS, EXCLUSIVE RIGHTS TO SELL, EXPORT CREDIT, EXPORT CREDITS, EXPORT GROWTH, EXPORT MARKETING, EXPORT MARKETS, EXPORTS, FAO, FARM, FARMER, FARMERS, FARMS, FEDERAL AGENCY, FERTILIZER, FIXED COSTS, FLOUR, FOOD PRICE, FOOD PRICES, FOOD SAFETY, FOOD SECURITY, FORECASTS, FOREIGN COMPANIES, FOREIGN FIRMS, FOREIGN MARKETS, FREE TRADE, FREE TRADE AGREEMENT, FUTURE GROWTH, FUTURES, GLOBAL MARKET, GLOBAL MARKETS, GRAIN, GRAIN HANDLING, GRAIN INDUSTRY, GRAIN PRICES, GRAIN PRODUCTION, GRAIN QUALITY, GRAIN STORAGE, GRAIN TRADE, GRAIN TRANSPORTATION, GRAIN YIELDS, GRAINS, HARVESTS, INCOME, INDIVIDUAL FIRMS, INFLATION, INNOVATION, INPUT PRICES, INSURANCE, INTERNATIONAL COMPETITIVENESS, INTERNATIONAL MARKETS, MALT, MARGINAL COST, MARGINAL COSTS, MARGINAL REVENUE, MARKET ACCESS, MARKET ANALYSIS, MARKET CONDITIONS, MARKET DEVELOPMENT, MARKET DISTORTIONS, MARKET LIBERALIZATION, MARKET PARTICIPANT, MARKET POWER, MARKET PRICE, MARKET PRICES, MARKET REGULATION, MARKET SHARE, MARKET SHARES, MARKET STRUCTURE, MARKET STRUCTURES, MARKETING, MARKETING BOARDS, MEAT, MONOPOLIES, MONOPOLY, MONOPOLY PRICES, MONOPOLY RENTS, NICHE MARKETS, OATS, OLIGOPOLY, OUTPUT, OWNERSHIP STRUCTURE, PERFECT COMPETITION, POPULATION GROWTH, POULTRY, PREMIUM PRICES, PRICE CONTROLS, PRICE DISCRIMINATION, PRICE FLUCTUATIONS, PRICE INCREASE, PRICE INCREASES, PRICE INFLATION, PRICE PREMIUM, PRICE SPREADS, PRICE STABILIZATION, PRICE SUPPORT, PRIVATE INVESTORS, PRIVATIZATION, PRODUCE, PRODUCER INCENTIVES, PRODUCER PRICE, PRODUCTION COSTS, PRODUCTIVITY INCREASES, PROFIT MAXIMIZATION, PROFIT MAXIMIZING, PROPERTY RIGHTS, PUBLIC GOOD, PURCHASING, PURE PROFIT, RENT SEEKING, RENT SEEKING BEHAVIOR, REPUTATION, RISK MANAGEMENT, RISK REDUCTION, SALE, SALES, SAVINGS, SCANDAL, SECURITY INTERESTS, SEEDS, SHAREHOLDERS, SOFT BUDGET CONSTRAINTS, STATE ENTERPRISE, STOCKS, SUBSTITUTION, SUPPLIER, SUPPLIERS, SUPPLY CHAIN, SUPPLY CURVE, SURPLUS, SURPLUSES, SUSTAINABLE DEVELOPMENT, TAX, TAXATION, TRADE NEGOTIATIONS, TRADING SYSTEM, VOLATILITY, WHEAT, WHEAT INDUSTRY, WHEAT PRICES, WHEAT TRADE, WHEAT VARIETIES, WORLD MARKET, WORLD MARKETS, WORLD TRADE, WORLD TRADE ORGANIZATION, WTO,
Online Access:	http://documents.worldbank.org/curated/en/2009/10/11742343/state-trading-enterprise-grains-russia-issues-options https://hdl.handle.net/10986/18899
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