USDA Reports on Karnal Bunt Phytosanitary Wheat Export Certificates

Posted by Caroline Brown on Fri, Sep, 3 2010 @ 12:56 PM

The USDA's Economic Research Service has issued a report on Karnal bunt (KB), a wheat disease of limited distribution in the United States, as affected areas are quarantined to limit spread of the disease. Currently, the KB regulatory program allows the USDA to issue phytosanitary export certificates stating that a wheat shipment is from an area where KB is not known to occur. Some in the wheat marketing chain, particularly elevator operators, find the regulatory program burdensome and advocate ending it. A model developed by the ERS was used to analyze the market effects of ending the certification. An average annual loss of 15.1% in export markets for US wheat producers would be only partially offset by increased use of lower priced wheat for domestic livestock feed.

Topics: Global Trade Content, Trade Regulatory Content

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