In 2015, 10 countries that export the most corn in the world accounted for a whopping 88% of world’s corn exports. In terms of cold hard cash, these nations raked in more than $25 billion, out of total corn export business, estimated at $28.3 billion globally per annum.
The world of corn exports is a fairly small one. There are 10 countries on our list, but the Big boys club (countries that hold 10% and above of the global market share) ends at number 4. These four countries combined control 70% of corn exports. Interestingly enough, some of them are also among the biggest corn importers as well. Mexico, the cradle of corn and a country where you would be hard-pressed to find a meal that doesn’t contain corn, is the world’s third corn importer. I’m sure Donald Trump supporters will find something interesting and clever to say about this fact. Other major corn markets are EU, Japan, South Korea, and Egypt.
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Today, human consumption is the third-ranked use of corn. In the United Staes, it is primarily used as a source of biofuels (about 40% of it goes for the production of ethanol), with cattle feed (36% of all produced corn) in the second place. GMO corn has done wonders for production and availability of corn, making it one of the easiest crops to grow. There are engineered varieties for every climate and water level. Scientists have produced several of them that are even drought resistant. This, combined with a very favorable weather in the Midwest, has led to some of the record-breaking harvests. However, not everyone is happy with GMO corn, as the Iowa farmers learned the hard way when China rejected their corn on the basis that it contains GMO strain not approved by their authorities, resulting in an estimated $1 billion loss. Farmers are now suing the seed producer Syngenta, demanding compensations.
Corn availability also has some serious downsides. In 2015, corn exports have dropped 13.7% compared to 2014. The downward trend has been present ever since 2012 and the record price of $8.49 per bushel. For comparison’s sake, the highest price in 2015 was $4.51 per bushel. People who feel this the most are the farmers, like the ones in Corn Belt. A while back, they were able to make as much as $400 per acre of corn, but with today’s prices, each of those acres may end up costing them $50. Some of them are considering switching to some other crop, at least until the market rebounds. If some of them consider barley, it may at least boost the US mediocre position on the list of countries that export the most beer.
But it’s not just the farmers that suffer from low corn prices. The entire agricultural sector in the US is feeling the pain of crops’ falling prices. John Deere, unable to sell their equipment to cash-strapped farmers, has been forced to lay off a significant number of workers from their Iowa and Illinois factories. The other manufacturers will follow suit unless this year’s price doesn’t increase. According to the University of Illinois projections, that is unlikely to happen.
Depending on the methodology of research, there are several ways to rank 10 countries that export the most corn. We decided to use World’s Top Exports for the basis of our list. One of the reasons is that they list EU countries separately and not lumped together under the EU tag. This gives a fair overview of the geographical distribution of corn production, with North America and Europe highlighted as the major producers.
10. Serbia
Exports value: $389.3 million
Market share: 1.40%
We kick off with Serbia, a small Eastern European country in Balkans. It is one of only two European countries on the list that aren’t EU members. Serbia is traditionally a big corn manufacturer, but only recently it has managed to break into top 10 corn exporters, mainly due to major players reducing their production and exports, leaving a share of the market open for countries that can produce cheap corn. Despite the 2013 aflatoxin scandal that threatened to severely dampen Serbian’s corn exports, they remained stable, with 67 million bushels exported in 2015. Low wages turned out to be a major advantage Serbian corn farmers have over their wealthier competitors.
9. Paraguay
Exports value: $441.2 million
Market share: 1.60%
Paraguay’s corn exports have taken a sharp dive in 2015, compared to the previous year. In 2014, the country exported 2.9 million metric tons, while in 2015 it only managed 2.3 million metric tons, an alarming 20% decrease. Apart from a global decline in corn trading, another factor that affected Paraguay’s corn farmers were the unusual weather patterns. This has encouraged some of them to shift towards soybean production, which is expected to be a record one in 2016, with 9.2 million metric tons estimate.
8. Russia
Exports value: $586.6 million
Market share: 2.10%
In 2010, Russia exported 37,000 metric tons of corn, which is on the level of some African countries. The next year, it managed to increase that number to more than 2 million metric tons, a staggering 5,000% surge. The fact is even more astonishing when compared to 2001 when the country didn’t export a single kernel of corn. Their exports levels may be unstable, but Russia has big plans for corn, devoting more than 7.4 million acres of land to its production in 2016, as farmers seek to get away from wheat, a highly politically sensitive crop with often government imposed sanctions on exports. Corn is a much safer choice and more and more Russian farmers are becoming aware of that fact.
7. Hungary
Exports value: $929.6 million
Market share: 3.30%
Due to a very favorable climate and plenty of fertile lands, corn is Hungary’s number one grain. In 2015 corn production reached 9.2 million metric tons, while in the same period Hungarian wheat farmers produced 5 million metric tons. The former Soviet block country has benefited greatly from EU membership and its agricultural subsidies and corn (and other grains) production is on the rise.
6. Romania
Exports value: $1.1 billion
Market share: 3.80%
Romania is seeing a large surge in corn exports in recent years, threating to become the biggest EU corn exporter. It is an example of yet another eastern European country reaping the benefits of EU agricultural policies. Both 2014 and 2015 saw an abundant corn yield, but 2016 may be at risk as the extensive rainfall and cold spring may have an adverse effect on grain production. Current estimates say that Romanian 2016 corn exports may be down as much as 12%, compared to 2015.
5. France
Exports value: $2 billion
Market share: 6.90%
European agricultural powerhouse holds the 5th place among countries that export the most corn in the world, despite the fierce competition coming from Eastern Europe. Traditionally, French corn exports have been limited to the EU, its high price making it unable to compete globally with cheap corn coming from Ukraine and the United States, only occasionally managing to sell it outside Europe. According to the EU reports, corn planting for this year is almost complete, but there are fears of mild winter causing an increased number of pests which could affect the harvest. And with France being France, there’s also a talk of a labor dispute that could engulf the agricultural sector.
4. Ukraine
Exports value: $3 billion
Market share: 10.60%
With Ukraine on number four spot, we enter the major league of corn exporters. Despite being in a shooting war with Russia, Ukraine managed to carve up more than 10% of the global corn market, with 27.7 million metric tons of corn exported. The country will remain a major player in 2016 as well, with corn planted on 4.37 million hectares (9.3 million acres). As Ukraine’s economy continues to tank and plenty of Russian tanks on its borders (and some of them inside of them), the agriculture remains one of few bright spots in country’s bleak situation.
3. Argentina
Exports value: $3.1 billion
Market share: 11.10%
The second South American country on the list, Argentina has been known as an important agricultural country. The exports were stable in the 2010-2015 period, hovering between 1.6 and 1.8 million metric tons. This year, however, export controls will be lifted. A long-standing export tax on corn will be abolished and that will unleash Argentinian corn into the world market. The consequences may be quite serious for producers who won’t be able to adapt to a much lower price.
2. Brazil
Exports value: $5 billion
Market share: 17.70%
Another South American giant sits on the second spot. The political crisis in Brazil may be the only thing in the world currently that can kick the corn prices upward. The unstable supply and problematic harvest have made several Brazil’s long-standing customers turn to other sources of corn. Next year may very well see Brazil slip few places on this list.
1. United States
Exports value: US$8.7 billion
Market share: 30.60%
The first place among the countries that export the most corn in the world is firmly held by the United States. Corn is the undisputed champion of American grains. The Corn Belt, a large swath of Midwestern, is the largest corn-growing area on the planet. Stretching from Pennsylvania to Nebraska, this sea of corn in American prairie is a magnificent sight. About 50% of United States corn is grown in four states (Iowa, Illinois, Nebraska and Minnesota), with the other half produced in Michigan, Kansas, Missouri, Indiana, and Ohio. Corn has been under relentless attacks in the recent years for two major reasons, the production of cheap corn syrup and the effects corn production on a massive scale has on global climate. The critics haven’t been able to affect the corn production yet, but as both climate changes and obesity epidemics become more and more obvious it would seem it is only a matter of time before they do.
