U.S. agricultural exports heading for a record

The Department of Agriculture revised forecast of agricultural exports for fiscal year 2004 shows sales of $61,500,000,000, an increase of $5,300,000,000 over the previous year. This level, if realized, would be the highest ever, eclipsing the standard of $59,800,000,000 set in FY1996. "This ... clearly indicates that our efforts to expand overseas market opportunities for our farmers and ranchers are working," notes Agriculture Secretary Ann M. Veneman.

Wheat and corn exports are likely to account for 50% of the jump. U.S. wheat is in high demand and is benefiting from reduced competition due to poor harvests in the European Union, Russia, and Ukraine. Corn is experiencing strong sales growth to Egypt, Colombia, Israel, and Korea.

Other commodities benefiting from large sales increases include cotton and horticultural products. Cotton sales are forecast to rise $1,500,000,000 over 2003 to $4,200,000,000. Horticultural sales are expected to set a record of $13,500,000,000 with tree nuts and a broad array of processed foods accounting for two-thirds of the overall gain. Horticultural exports to Canada and Mexico remain strong; sales to Europe of selected products are brisk, and exports to several Asian countries are rising sharply.

The 2004 forecast of livestock and livestock products of $7,000,000,000 is due to high beef, pork, and poultry prices as well as the Department's efforts to reopen some key markets that were closed following findings of Bovine Spongiform Encephalopathy and Avian Influenza. Livestock exports in FY2003 totaled $9,000,000,000.

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