US agricultural exports expected to reach $62 billio - leatherbiz: Lea Leatherbiz

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US agricultural exports expected to reach $62 billion

01/09/2004

The US Department of Agriculture's final export forecast for fiscal year 2004 indicates that sales are expected to reach $62 billion, $5.8 billion more than last year. This represents the highest sales ever, eclipsing the old record of $59.8 billion set in fiscal year 1996. This forecast is up $500 million from May's estimate, largely due to stronger-than-expected cotton, beef and pork exports.

 

US Secretary of Agriculture, Ann Veneman, said "Our goal in the months ahead will be to expand trade possibilities even more through the World Trade Organization and other negotiations."

 

Canada remains the biggest market for US agricultural products, with exports estimated at $9.6 billion, followed by Japan at $8.9 billion and Mexico at $8.6 billion.

In fiscal year 2004, Asia is projected to be the USA’s largest regional market, with sales there expected to reach $24.5 billion. This compares to $23.3 billion forecast to be shipped to markets in the Western Hemisphere. Exports to China

are expected to reach $6 billion, up from $3.5 billion last year. China now is the leading importer of US cotton and soybeans and also imports large quantities of wheat, hides and skins.

 

The USDA also released its initial forecast for fiscal year 2005, placing sales for next year at $57.5 billion. The decline in value from this year is mainly due to increased competition and lower expected prices for cotton, wheat and soybeans. Canada, Mexico, several Asian countries and Europe remain the key markets. For 2005, imports are forecast to increase 5%, reaching $55.0 billion, another new record and up $9.3 billion since 2003.

 

The accelerated import growth that occurred between 2002 and 2004 is largely due to higher processed product prices that resulted in part from a weaker dollar. These price gains are expected to slow in 2005.

 


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