World Bank2014-07-172014-07-172009-10https://hdl.handle.net/10986/18899The 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.en-USCC BY 3.0 IGOAGENCY PROBLEMSAGRICULTURAL EXPORTSAGRICULTUREANIMAL FEEDARBITRAGEASSET VALUEASSETSAVERAGE COSTSAVERAGE PRICEBARLEYBUDGETARY SUPPORTCARTELCEREAL PRICESCEREALSCIVIL CODECLIMATIC CONDITIONSCOARSE GRAINSCOLLUSIONCOMMODITIESCOMMODITYCOMPETITION POLICYCOMPETITIVENESSCONSUMER PRICESCONSUMERSCONTESTABLE MARKETCOOPERATIVESCORNCOST STRUCTURESCREDIT RATINGCROPCROPSCURRENCYCUSTOMER SERVICEDEMAND CURVEDIVERSIFIED MARKETDOMESTIC MARKETDOMESTIC MARKETSDOMESTIC PRICESDURUM WHEATECONOMIC COOPERATIONECONOMIC PERFORMANCEECONOMIES OF SCALEEQUAL SHARESEXCESS SUPPLYEXCHANGE RATEEXCLUSIVE RIGHTSEXCLUSIVE RIGHTS TO SELLEXPORT CREDITEXPORT CREDITSEXPORT GROWTHEXPORT MARKETINGEXPORT MARKETSEXPORTSFAOFARMFARMERFARMERSFARMSFEDERAL AGENCYFERTILIZERFIXED COSTSFLOURFOOD PRICEFOOD PRICESFOOD SAFETYFOOD SECURITYFORECASTSFOREIGN COMPANIESFOREIGN FIRMSFOREIGN MARKETSFREE TRADEFREE TRADE AGREEMENTFUTURE GROWTHFUTURESGLOBAL MARKETGLOBAL MARKETSGRAINGRAIN HANDLINGGRAIN INDUSTRYGRAIN PRICESGRAIN PRODUCTIONGRAIN QUALITYGRAIN STORAGEGRAIN TRADEGRAIN TRANSPORTATIONGRAIN YIELDSGRAINSHARVESTSINCOMEINDIVIDUAL FIRMSINFLATIONINNOVATIONINPUT PRICESINSURANCEINTERNATIONAL COMPETITIVENESSINTERNATIONAL MARKETSMALTMARGINAL COSTMARGINAL COSTSMARGINAL REVENUEMARKET ACCESSMARKET ANALYSISMARKET CONDITIONSMARKET DEVELOPMENTMARKET DISTORTIONSMARKET LIBERALIZATIONMARKET PARTICIPANTMARKET POWERMARKET PRICEMARKET PRICESMARKET REGULATIONMARKET SHAREMARKET SHARESMARKET STRUCTUREMARKET STRUCTURESMARKETINGMARKETING BOARDSMEATMONOPOLIESMONOPOLYMONOPOLY PRICESMONOPOLY RENTSNICHE MARKETSOATSOLIGOPOLYOUTPUTOWNERSHIP STRUCTUREPERFECT COMPETITIONPOPULATION GROWTHPOULTRYPREMIUM PRICESPRICE CONTROLSPRICE DISCRIMINATIONPRICE FLUCTUATIONSPRICE INCREASEPRICE INCREASESPRICE INFLATIONPRICE PREMIUMPRICE SPREADSPRICE STABILIZATIONPRICE SUPPORTPRIVATE INVESTORSPRIVATIZATIONPRODUCEPRODUCER INCENTIVESPRODUCER PRICEPRODUCTION COSTSPRODUCTIVITY INCREASESPROFIT MAXIMIZATIONPROFIT MAXIMIZINGPROPERTY RIGHTSPUBLIC GOODPURCHASINGPURE PROFITRENT SEEKINGRENT SEEKING BEHAVIORREPUTATIONRISK MANAGEMENTRISK REDUCTIONSALESALESSAVINGSSCANDALSECURITY INTERESTSSEEDSSHAREHOLDERSSOFT BUDGET CONSTRAINTSSTATE ENTERPRISESTOCKSSUBSTITUTIONSUPPLIERSUPPLIERSSUPPLY CHAINSUPPLY CURVESURPLUSSURPLUSESSUSTAINABLE DEVELOPMENTTAXTAXATIONTRADE NEGOTIATIONSTRADING SYSTEMVOLATILITYWHEATWHEAT INDUSTRYWHEAT PRICESWHEAT TRADEWHEAT VARIETIESWORLD MARKETWORLD MARKETSWORLD TRADEWORLD TRADE ORGANIZATIONWTO10.1596/18899