The Uses of Corn: Industries Affected by High Corn Prices
Connect with us

Agriculture

The Uses of Corn: Industries Affected by High Corn Prices

Published

on

The uses of corn

Can I share this graphic?
Yes. Visualizations are free to share and post in their original form across the web—even for publishers. Please link back to this page and attribute Visual Capitalist.
When do I need a license?
Licenses are required for some commercial uses, translations, or layout modifications. You can even whitelabel our visualizations. Explore your options.
Interested in this piece?
Click here to license this visualization and get access to the data.

Corn Beyond the Cob

Corn or maize is the second most-produced crop in the world, and it’s more than just a staple in our diets.

From the sweetener in our coffees to the ethanol that powers our vehicles, corn has hundreds of uses. Consequently, high corn prices have a domino effect that can affect many supply chains and possibly even increase the cost of our weekly groceries, especially if they include tortilla chips.

This infographic uses data from the National Corn Growers Association to break down U.S. corn use by segment in 2020, and the products that a bushel of corn can produce.

The Uses of Corn in the U.S.

While corn on the cob is quite popular, not all corn is sweet. There are five major types of corn grown around the world, and each one differs in taste and uses. Of these, yellow dent corn or field corn accounts for the majority of commercial U.S. production.

Here’s a breakdown of U.S. corn usage in 2020:

SegmentBushels Used (millions)% of Usage (2020)
Feed5,65038.7%
Ethanol (Fuel)3,87526.6%
Exports2,55017.5%
Ethanol (Animal Feed)1,0757.4%
Sweeteners7805.3%
Starch2301.6%
Cereal/Other2151.5%
Beverages/Alcohol1701.2%
Seeds300.2%
Total14,575100%

Corn accounts for more than 96% of U.S. feed grain use and production. As a result, animal feed makes up nearly 40% of the country’s corn usage. This is because corn is a rich source of carbohydrates, and in combination with protein from soybeans, it can make for an effective diet for livestock.

In the United States, federal mandates require vehicles to use a blend of gasoline and biofuels like ethanol—94% of which is produced from the starch in corn grain. Therefore, a large portion of U.S. corn goes into ethanol production.

Interestingly, the ethanol distillation process produces a co-product known as dried distillers grain, which serves as low-cost, protein-rich animal feed for livestock. On average, the U.S. ethanol industry produces around 90,000 tons of distillers grains each week.

Animal feed and ethanol production collectively make up around 73% of U.S. corn usage. Other uses of corn include the production of sweeteners, starch, cereal, and alcoholic beverages like whiskey.

Breaking Down U.S. Corn Exports

The U.S. is the world’s largest producer and exporter of corn and accounted for roughly 36% of exports in 2020.

Up until 2019, the majority of U.S. corn exports went to Mexico, Japan, and Colombia. China wasn’t among the top 10 destinations, but this changed in 2020.

u.s. corn exports

Between January 2020 and 2021, U.S. corn exports to China increased exponentially, reaching an all-time high in December. China’s massive import appetite is because of a shortage of domestic supplies amid rising demand for feed from its recovering hog-herd, which was hit by the African swine fever in 2018.

Consequently, China became the third-largest importer of U.S. corn in 2020 after Mexico and Brazil. What’s more, the U.S. Department of Agriculture projects that China’s corn imports in 2021 will be much higher than 2020 levels, and the majority of those will be sourced from the United States.

The Corn Price Boom

In addition to a drought-induced yield cut in Brazil, rising demand from China has driven corn prices to their highest level in the last eight years.

price of corn

Since the beginning of 2020, corn prices have increased 68% and stand at around $6.50 per bushel as of May 19th.

The rise in corn prices is likely to affect several industries and could translate into higher prices for our groceries, including cereals, taco shells, and corn syrups. Additionally, it could also push up the price of gas due to its key role in ethanol production.

Corn, in a Bushel

In a world where commodities like corn are often taken for granted, it’s important to think about how valuable it can be.

A single bushel of corn can provide 33 lbs of sweetener, 31.5 lbs of starch, or 22.4 lbs of polymers. It’s also enough to produce around 3 gallons of ethanol fuel and 16 lbs of distillers dried grains for animal feed.

The uses of corn go far beyond the cob, and just like other raw materials, it supports many industries that make modern life possible.

Subscribe to Visual Capitalist
Click for Comments

Agriculture

Which Countries Produce the Most Wheat?

Global wheat production is concentrated in just a handful of countries. Here’s a look at the top wheat-producing countries worldwide.

Published

on

Visualizing Global Wheat Production by Country (2000-2020)

Wheat is a dietary staple for millions of people around the world.

After rice and corn (maize), wheat is the third most-produced cereal worldwide, and the second-most-produced for human consumption. And considering wheat’s importance in the global food system, any impact on major producers such as droughts, wars, or other events, can impact the entire world.

Which countries are the largest producers of wheat? This graphic by Kashish Rastogi visualizes the breakdown of 20 years of global wheat production by country.

Top 10 Wheat Producing Countries

While more than 80 different countries produce wheat around the world, the majority of global wheat production comes from just a handful of countries, according to data from The Food and Agriculture Organization of the United Nations (FAO).

Here’s a look at the top 10 wheat-producing countries worldwide, based on total yield in tonnes from 2000-2020:

RankCountryContinentTotal yield (tonnes, 2000-2020)% of total (2000-2020)
#1🇨🇳 ChinaAsia & Oceania2.4 B17.0%
#2🇮🇳 IndiaAsia & Oceania1.8 B12.5%
#3🇷🇺 RussiaAsia & Oceania1.2 B 8.4%
#4🇺🇸 U.S.Americas1.2 B 8.4%
#5🇫🇷 FranceEurope767 M 5.4%
#6🇨🇦 CanadaAmericas571 M 4.0%
#7🇩🇪 GermanyEurope491 M3.5%
#8🇵🇰 PakistanAsia & Oceania482 M3.4%
#9🇦🇺 AustraliaAsia & Oceania456 M3.2%
#10🇺🇦 UkraineEurope433 M3.1%

China, the world’s largest wheat producer, has yielded more than 2.4 billion tonnes of wheat over the last two decades, making up roughly 17% of total production from 2000-2020.

A majority of China’s wheat is used domestically to help meet the country’s rising food demand. China is the world’s largest consumer of wheat—in 2020/2021, the country accounted for approximately 19% of global wheat consumption.

The second-largest wheat-producing country is India. Over the last two decades, India has produced 12.5% of the world’s wheat. Like China, India keeps most of its wheat domestic because of significant food demand across the country.

Russia, the world’s third-largest wheat producer, is also the largest global exporter of wheat. The country exported more than $7.3 billion worth of wheat in 2021, accounting for approximately 13.1% of total wheat exports that year.

Russia-Ukraine Impact on Global Wheat Market

Because Russia and Ukraine are both significant global wheat producers, the ongoing conflict between the two countries has caused massive disruptions to the global wheat market.

The conflict has had an impact on adjacent industries as well. For instance, Russia is one of the world’s major fertilizer suppliers, and the conflict has led to a global fertilizer shortage which could lead to food shortages worldwide.

Continue Reading

Agriculture

Timeline: The Domestication of Animals

This graphic shows a timeline of when 15 different animals became domesticated, based on archaeological findings.

Published

on

Timeline: The Domestication of Animals

While dogs weren’t always our docile companions, research indicates that they were likely one of the first animals to be domesticated by humans. In fact, genetic evidence suggests that dogs split from their wild wolf ancestors around 33,000 years ago.

When did humans domesticate other animals, and why? This timeline highlights the domestication period of 15 different animals, based on archeological findings.

Because exact timing is tricky to pinpoint and research on the topic is ongoing, these estimates may vary by thousands of years.

Defining Domestic

The domestication of animals is a particular process that’s done through selective breeding. Generally speaking, domestic animals follow most of these criteria:

  1. Genetically distinct from their wild ancestors and more human-friendly as a genetic trait.
  2. Dependent on humans for food and reproduction.
  3. They’re extremely difficult or impossible to breed with wild counterparts.
  4. Show the physical traits of domestication syndrome, such as smaller skulls, floppy ears, or coat color variations.

Domestication is not the same as taming an animal, which is when humans condition wild animals to live in captivity.

While some research suggests that domestic animals can prosper in the wild, domestic animals are typically more susceptible to predators since they lack some of the advantages, instincts, or traits that help their wild counterparts survive in nature.

Key Reasons for the Domestication of Animals

Humans domesticate animals for a number of reasons: some have been domesticated for food, work, companionship, or a combination of all three.

After dogs, livestock animals such as sheep, cows, and pigs are thought to have been some of the first animals to become domesticated by humans. This was around the same time that humanity shifted from a hunter-gathering lifestyle to an agricultural society.

Domesticated AnimalPrimary TypeEstimated Domestication PeriodOrigin
DogPet13,000–34,000 BCEEurasia
SheepLivestock9,000 BCEMiddle East
GoatLivestock8,500 BCEMiddle East
PigLivestock8,300 BCEMiddle East
CowLivestock8,300 BCEMiddle East
CatPet7,500 BCEMiddle East
Zebu (Humped Cow)Livestock6,000 BCESouth Asia
LlamaLivestock4,000 BCESouth America
HorseWork3,500 BCECentral Asia
AlpacaLivestock3,000 BCESouth America
Bactrian Camel (two-humped)Work2,500 BCECentral Asia
ChickenLivestock2,000 BCEEast Asia/Middle East
Arabian Camel (one-humped)Work1,000 BCEMiddle East
TurkeyLivestock0 CENorth America
DuckLivestock1,000 CEEast Asia/Middle East

Horses are thought to be some of the first animals domesticated for work. Scientific research suggests that the modern horse originated in Central Asia, and were selectively bred for their exceptional back strength and overall resilience.

When it comes to domesticating animals, herbivores (like cows) are generally the easiest to convert because they’re easier to feed than animals that rely on meats or grains, which need to be sourced or domesticated themselves.

Domestication Has Shaped Modern Humanity

The domestication of species has helped create our modern society. Domesticating plants and animals created a world with stable food production, which enabled the human population to boom worldwide.

This is because agriculture meant fewer people could provide more food to humans on a mass scale, so people had more time to focus on other things like creative pursuits, scientific research, etc. This gave us time to create tools that helped boost efficiencies in farming and agriculture, leading to the world as we know it today.

Continue Reading

Subscribe

Popular