Agricultural Exports Growth Brings Opportunities in Global Trade

 Amidst all the recent business reports announcing lower than expected future revenues, was an end of August announcement from the US Department of Agriculture that agricultural exports for fiscal 2003 are forecasted to be $57.5 billion, a 7.5% increase over the expected $53.5 billion for fiscal 2002.  Realization of that forecast would mean 2003 would be the best year for agricultural exports since the all time record was established in 1996 at $59.8 billion.

 When you stop to think about it, that simple announcement carries with it some rather significant implications.  For example, the dry weather patterns experience in this years’ growing season will result in the total 2002 harvest being lower, for most commodities, that it was last year.  This year's harvest will form the stocks from which the bulk of the forecasted exports will come.  The 2002 corn  harvest, for instance, will be about 7% less than 2001.

 The fact that we can plan to increase exports despite smaller harvests suggests we can not only feed ourselves, but we can increase the amount we contribute to feeding the rest of the world. Statistics support that conclusion:  Today, one-third of the acres planted by US farmers generates crops that are exported;  and, just 25% of all farm cash receipts come from export; and we still have surpluses.  This suggests there is room for export growth.

 Additionally, farm exports mean more American jobs.  Last year, when we recorded $53 billion in foreign agricultural product sales, the total impact on the US economy was $127 billion, and generation of more than 800,000 jobs.  Many of those jobs were in industries that support the export activity.  Things like processing, packaging, shipping and financing.  Using the same ratio, 2003’s agricultural product exports could have an overall impact of $138 billion on the US economy.  This means export growth is desirable and beneficial to the US economy.

 However, that may just be the tip of the iceberg!  The Agriculture Secretary, Ann M. Veneman believes that changes being suggested by the administration could significantly increase export revenues. “A free and competitive global market for food and agriculture products could mean $13 billion a year in economic growth for America's farmers and consumers, and that is why the Bush Administration has intensified its trade policy initiatives on behalf of our farmers and ranchers,” Veneman said.

 In addition to changes in international trade policies that will eliminate trade barriers for food and  agricultural products and level the playing field for US producers, American businesses should be getting themselves positioned to take advantage of the potential growth in export markets.  But many of them do not know where to get started.  But the good news is there is a significant amount of help available – even for the smallest of companies who are interested in getting involved in the growing global opportunities.  Both State and Federal government agriculture departments offer a wide range of assistance programs, that assist companies with the mechanics of foreign trade. 

 Additionally, there are government funded organizations in every region of the country who facilitate the process of putting potential exporters with importers and buyers in nations all over the globe.  But most of these export assistance organizations expect the company interested in exporting to know what they want to sell and to whom they want to sell it.  Often that step takes outside assistance from knowledgeable private firms who know how to evaluate international markets and identify those potential importing nations where the opportunities are highest and the barriers to market entry are lowest. 

 Solid research-based marketing planning from internationally experienced experts is an important first step to revenue and profit opportunities that exist in food and agricultural commodity global trade.