The World is Your Oyster: Explore Export Options
If there was ever a time to consider producing for the global market, it’s now.
Opportunities are expanding as the world’s population increases and demand for food rises. Countries are seeking nutritious, high-quality and affordable food to feed their people. They are looking for products tailored to their unique cultures.
In response, U.S. producers are becoming ever-greater global food suppliers. In fact, USDA projects a record $183.5 billion in U.S. agricultural exports for 2022.
China is expected to remain the largest U.S. agricultural market, but Japan, Southeast Asia, India, Latin America, the European Union, Mexico and Canada also are expanding markets for U.S. agriculture.
EXPLORE EXPORT OPTIONS
If you’re ready to tap into the potential of the export market, seek out global market assistance from universities, trade associations, commodity groups and government agencies. Exploring your export options through them can be free or cost very little.
The USA Poultry and Egg Export Council, for example, has offices all over the world to represent U.S. interests and build global demand. Washington State University and the Indiana State Department of Agriculture have teams to help ag groups with export paperwork, negotiating, laws and policy.
These export professionals know foreign markets, and that’s critical. International needs often differ from our domestic market.
An American negotiator for trade with Latin America recently told me importers from that 33-country region would prefer a cheaper but still nutritious apple variety instead of the newer, more expensive ones (ex: Honeycrisp). Could you capitalize on that export need?
SAME CROP, NEW POSSIBILITIES
Similarly, global customers often want specific soybean, rice or corn varieties. An export specialist could advise you on shifting or expanding your production to supply such growing markets.
Experts can help you identify new possibilities for your crop or product. Alfalfa hay, for instance, isn’t just for cattle or horses. The Middle East also needs alfalfa hay to feed its camels. Likewise, a specialist can help you find opportunity in selling part of your grain or meat production to the overseas pet-food market.
Experts also will help you identify trade barriers such as tariffs. They can point out the numerous sanitary and safety regulations that vary by country. The same is true for packaging and shipping requirements. And they are familiar with supply-chain constraints, rising fuel costs, pandemic issues, geopolitical tensions and other headwinds that affect export shipments.
SET THE STAGE FOR GROWTH
In April, Krysta Harden, president and CEO of the U.S. Dairy Export Council, offered this statement in written con-gressional testimony: “Exports underpin U.S. dairy’s success in the present and will support the industry’s growth in the future.”
That could be said for the rest of agriculture. The potential of the export market is massive. It’s time to start the conversation on how you can be part of it.
Kala’s insights have helped position agribusinesses for both survival and success, from agricultural lending, cash flow strategies and debt optimization to grain marketing, risk management and legacy building. As a KCoe manager, she is a proactive catalyst for agribusiness success, enabling their growth, optimization and expansion.
