U.S. Agricultural Exports Expected to Reach Record Levels
News Date September 17, 2007
Agriculture Secretary Mike Johanns announced at the end of August a record $79 billion forecast in FY07 agricultural exports. For fiscal year 2008, USDA forecasts exports to reach $83.5 billion with growth and new sales across all major agricultural product groups. The forecasts eclipse the old record of $68.6 billion set last year.
"These export numbers, once again, demonstrate that U.S. agricultural products are in high demand around the world," said Johanns. "They also reflect tight world markets for grains and oilseeds." Building on momentum from 2007, export gains in 2008 will be broad based with record sales for bulk grains, oilseeds, cotton, and high-value horticultural and livestock products.
According to USDA's first forecast for fiscal year 2008, an expected record U.S. corn crop, strong foreign demand and reduced competition will boost U.S. corn exports $600 million. China's demand for soybeans and cotton remains strong. Developments in the bio-diesel market will raise Europe's demand for soybeans as well. Horticultural exports are anticipated to rise by $800 million, supported by strong foreign demand and a competitive dollar. Beef exports are expected to increase $400 million due to larger volume.
"Trade agreements are having a huge impact," said Johanns. "If Congress ratifies the recently signed free trade agreements with Colombia, Korea, Panama and Peru, our producers will have increased access in some extremely important markets."
Imports for fiscal year 2008 are forecast at $75 billion, up $4.5 billion from the 2007 estimate, making for an $8.5 billion trade surplus in 2008. The largest import gains are forecast for fresh and processed fruits, coffee beans and other tropical products, bulk grains, and wines and beer.
USDA's Economic Research Service, Foreign Agricultural Service and the World Agricultural Outlook Board release agricultural trade forecasts quarterly. The summary and full report of USDA's Outlook for U.S. Agricultural Exports may be accessed at http://www.ers.usda.gov or http://www.fas.usda.gov.
In other trade news, WTO negotiators are meeting in Geneva during the next three weeks to review a draft negotiating text from the chairman of the agriculture trade group, New Zealand's WTO ambassador Crawford Falconer. The text outlines areas where the ambassad believes members are close to agreement and in cases where more work needs to be done to reach a deal. (Contact: Jennifer Yezak)