INTERNATIONAL TRADE OF AGRI-FOOD PRODUCTS (CLAM)
Learning outcomes of the course unit
The international agri-food market is strongly influenced by sector economic policies in individual countries and resulting from international agreements.
The course focuses on trade in ag-commodities characterised by spot markets and futures markets. The student gains a basic understanding of these markets and operational aspects of the main types of market.
It focuses on risk hedging used or useable by agri-food food chain operators.
Course contents summary
1. Trade flows and geography
1.1 Agricultural and agri-food products; basic and processed products
1.2 Dynamics of world agri-food trade
1.3 Export and import poles of agri-food products foreign trade
1.4 Instruments of technical and fundamental analysis;
2. W.T.O. and regulation of international trade
2.1 Multilateral agreements
2.2 1994 GATT Agricultural Agreement
3. Instability of world agri-food markets
3.1 Demand for agri-food products (elasticity, "Engel’s law", "King effect")
3.2 Globalization and interdependence of world agri-food markets
3.3 Supply rigidity and its causes
3.4 Exogenous instability factors
3.5 EU intervention on community market of agricultural commodities
4 Supply & Demand Sheet
4.1 Aims, basic equations, rules for completion
4.2 Derivable indicators (nutrition parameters and indices for basic market analysis)
5. Futures contracts exchange on ag-commodities
5.1 "Cash", "forward" and "future" contracts
5.2 Spot transactions and “ready made” contracts
5.3 Standardization of futures contracts
5.4 Role of the broker
5.5 The Clearing House and its functions
5.6 Implicit risks in international trade transactions; speculation and hedging
5.7 Operational strategies and risk management
6. Elements of technical analysis applied to futures markets for agricultural commodities
ESSENTIAL READINGS :
Materiale didattico per il corso di Commercio internazionale dei prodotti agroalimentari, Università degli Studi di Parma, Parma, 2004/2005.
Introduzione all’analisi tecnica dei mercati agroalimentari, Università degli Studi di Parma, Parma, 2003/2004.
I mercati finanziari delle commodity agroalimentari, Università degli Studi di Parma, Parma, 2004/2005.
All essential readings are available from the Photocopy service, Economics Faculty (6, Via Kennedy, Parma).
A. MARIANI, E. VIGANO' (Ed.s): Il sistema agroalimentare dell’Unione Europea, Roma, 2002, Carocci Editore.
R. FANFANI: Lo sviluppo della politica agricola comunitaria, Roma, 1996, NIS, 2nd ed.
F. DE FILIPPIS : Le vie della globalizzazione: la questione agricola nel WTO, Milano, 2002, F.Angeli, 1st ed.
The exam consists of open ended written questions.
Students may be asked to write short papers for seminars during the course, which will count towards final assessment.