Table Of Content

Historic, Archive Document Do not assume content reflects current scientific knowledge, policies, or practices. Foreign Agricultural Trade of the United States Economic Research Service FATUS May/June 1991 rut -\ * iML JML m JUl JUL Sales Information Foreign Agricultural Trade of the United States is available on a subscription basis. Subscription includes six bimonthly issues and two annual supplements. Subscription rates are $25 domestic; $31.25 foreign. Send check or money order payable to "ERS-NASS" to: ERS-NASS P.O. Box 1608 Rockville, MD 20850-1608 For faster service or more information, call 1-800-999-6779. Time to Renew? See renewal information on the back cover. List of Abbreviations Abbreviation Description Abbreviation Description Ag Agricultural MT Metric tons Anhyd Anhydrous NA Not applicable Cent plan Centrally planned n.e.c. Not elsewhere classified Chill Chilled NO Number Devel Developed Nonag Nonagricultural Dol Dollars Oc Ocean Evap Evaporated Pac Pacific Ex Excluding Parb Parboiled Ext Extracts Pen Peninsula Fr Fresh Prep Preparations, prepared Froz, Frz Frozen Pres Preserved HL Hectoliters Prod Products Incl Including Prop Propelled Is Island(s) Prot Protein Mach Machinery Terr Territory Mfg Manufactured Unmfg Unmanufactured Misc Miscellaneous Veg Vegetable(s) Prepared by the Commodity and Trade Analysis Branch, Commodity Economics Division, Economic Research Service, U.S. Department of Agriculture. Principal coordinators are Thomas A. Warden and Mary L. Fant. Shirley E. Brown and Traci C. Curry provide word processing and table formatting support. Editorial support is furnished by Jim Carlin, Research Information Branch, Information Division, Economics Management Staff. Data processing support is provided by Sharlan Starr and William Meiller, International Economic Systems Branch, Data Services Center. Foreign Agricultural Trade of the United States. Commodity and Trade Analysis Branch, Commodity Economics Division, Economic Research Service, U.S. Department of Agriculture. Digest World Trade and U.S. Exports Fall (see p. 2). U.S. agricultural exports fell 7 percent to $23 billion during the first 7 months of FY 1991. Exports declined $2 billion and 17 million tons as prices weakened and the U.S. share of world trade declined. Reduced grain exports accounted for much of the drop, following record world wheat production, record grain production in China, and near-record output in the Soviet Union. U.S. Food Imports Total $19.4 Billion in 1989 (see p. 5). The United States imported $22.5 billion of agricultural commodities in 1989, including $19.4 billion of food items. The remaining commodities consisted of nonfood items, such as cotton, tobacco, wool, natural rubber, silk, and crude drugs. Another $5.2 billion was spent on fish, bringing total spending on imported food to $24.6 billion. Export Share of Production Steady in 1990 (see p. 10). During FY 1990, 17 percent of all U.S. farm production was exported, about the same as during 1988 and 1989. The share remained below FY 1981’s record 22 percent. Much of the variation in this share came from changes in bulk product exports, such as grains, oilseeds, and cotton, while high-value exports climbed steadily during the 1980’s. About 40 percent of all U.S.-produced bulk products were exported in FY 1990, while the comparable figure for U.S.-produced high-value products was about 9 percent, a new high. California Still Top Agricultural Exporting State in FY 1990 (see p. 14). California remained the top exporting State for agricultural products for the sixth year in a row. Also ranked in the top 10 were: Iowa, Illinois, Nebraska, Texas, Kansas, Minnesota, Indiana, Missouri, and Ohio. These are the same 10 States as in FY 1989, although the order changed slightly. These States accounted for 59 percent of all agricultural exports. 1 World Trade and U.S. Exports Fall unchanged from a year earlier, and virtually all the decline reflected falling volume. U.S. agricultural exports fell 7 percent to $23 billion during the first 7 months of FY 1991. Exports declined The decline in coarse grain volume and the drop in $2 billion and 17 million tons as prices weakened and wheat prices mirrored the same factors. Record world the U.S. share of world trade declined. Reduced grain wheat production drove world wheat prices exports accounted for much of the drop, following substantially lower during the first half of FY 1991. record world wheat production, record grain production With wheat prices lower, foreign customers switched in China, and near-record output in the Soviet Union. purchases from corn, predominantly supplied by the United States, to feed wheat, which is primarily With lower prices and reduced volume for corn and supplied by U.S. competitors. wheat, the value of U.S. grain and feed exports declined $2.5 billion. U.S. oilseed and product exports U.S. coarse grain exports were also reduced by a also fell as the United States lost share in a shrinking near-record grain crop in the Soviet Union, the largest market in FY 1991. Exports of high-value products customer for U.S. grain in 1991. More Argentine continued rising. sorghum became available for export to Japan because of a sharply higher 1990/91 Argentine U.S. wheat exports, valued at $1.6 billion, were down sorghum crop, and China’s record grain crop meant $1 billion from FY 1990. Wheat volume fell only 3 increased exports from another competitor to East percent, so lower prices accounted for most of the loss Asian markets. However, a drought-reduced corn crop in value. Coarse grain exports fell in both volume and in South Africa has cut South Africa’s exports to value during the first 7 months. Volume declined 12 Taiwan and Japan, offsetting some of the loss of million tons to 32 million tons, and value fell $1.4 billion market share. (Stephen MacDonald, Commodity and to $3.5 billion. Coarse grain prices were just about Trade Analysis Branch, 202-219-0822) 2 Table 1—Agricultural, nonagricultural, and total trade balance Item October-April Aoril 1989/90 : 1990/91 1990 1991 Million dollars Agricultural exports 25,247 23,238 3,348 3,146 Nonagricultural exports 107,072 206,214 27,761 31,210 Total exports 212,319 229,452 31,109 34,356 Agricultural imports 13,491 13,470 1,898 2,074 Nonagricultural imports 263,836 271,389 36,544 37,248 Total imports 277,327 284,859 38,442 39,322 Agricultural trade balance 11,756 9,768 1,450 1,072 Nonagricultural trade balance -76,764 -65,175 -8,783 -6,038 Total trade balance -65,008 -55,407 -7,333 -4,966 Table 2—U.S. agricultural exports: Quantity (1,000 tons) of selected commodities, October-April 1989/90 and 1990/91, and April 199C and 1991 October-April April Commodity group 1989/90 : 1990/91 : Change 1990 : 1991 : Change -1.000 tons- Percent —-1 .000 tons- Percent Animal products 1,648 1,598 -3 201 255 27 Meats and meat products 517 540 4 62 73 18 Poultry meats 319 372 17 49 49 0 Dairy products 53 17 -68 5 3 -40 Fats, oils, and greases 747 654 -12 83 127 53 Other animal products 12 15 25 2 3 50 Grains and feeds 72,171 57,799 -20 10,628 8,091 -24 Wheat 16,198 15,667 -3 2,302 2,409 5 Wheat flour 639 548 -14 121 73 -40 Rice 1,739 1,605 -8 234 166 -29 Feed grains 44,832 32,393 -28 5,796 4,440 -23 Feeds and fodders 7,949 6,716 -16 2,023 895 -56 Fruits and preparations 1,231 1,408 14 180 172 -4 Nuts and preparations 373 337 -10 43 26 -40 Vegetables and preparations 1,296 1,624 25 214 232 8 Oilseeds and products 17,717 14,305 -19 1,714 1,687 -2 Oilcake and meal 3,111 3,108 0 417 410 -2 Soybeans 13,569 10,346 -24 1,186 1,150 -3 Sunflowerseeds 69 65 -6 8 6 -25 Vegetable oils 747 546 -27 83 99 19 Tobacco, unmanufactured 156 157 1 18 22 22 Cotton, excl. linters 1,116 1,238 11 160 154 -4 Cotton linters 27 20 -26 3 3 0 Essential oils 8 8 0 1 1 0 Seeds 309 305 -1 25 37 48 Sugar--cane or beet 254 344 35 19 52 174 Other 18 20 11 2 3 50 Total 96,324 79,163 -18 13,208 10,735 -19 1/ Includes miscellaneous animal products but excludes live animals, hides, and eggs . 2/ Includes miscellaneous vegetable products and beverage bases but excludes fruit juices nursery stock. and related sugar products. 3 Table 3--U.S. agricultural exports: Value by months, October 1988-April 1991 Month FY 1989 FY 1990 1/ : FY 1991 Million dollars October 3,298 3,384 3,082 November 3,352 3,651 3,500 December 3,631 3,568 3,164 October-December 10,281 10,603 9,746 January 3,352 3,758 3,218 February 3,461 3,503 3,492 March 4,024 4,039 3,636 January-March 10,837 11,300 10,346 April 3,419 3,348 3,146 May 3,310 3,284 June 3,040 3,234 April-June 9,769 9,866 July 2,965 2,766 August 2,765 2,945 September 2,994 2,723 July-September 8,724 8,434 Total 2/ 39,611 40,203 Monthly average 3,301 3,350 1/ Revised. 2/ Totals may not add due to rounding Table 4--U.S. agricultural imports: Value by months, October 1988-April 1991 1/ Month FY 1989 FY 1990 2/ : FY 1991 Million dollars October 1,742 1,824 1,923 November 1,739 1,851 1,901 December 1,670 1,750 1,810 October-December 5,151 5,425 5,634 January 1,947 2,022 1,930 February 1,862 1,999 1,869 March 1,973 2,148 1,962 January-March 5,782 6,169 5,761 April 1,826 1,898 2,074 May 1,939 1,981 June 1,706 1,817 April-June 5,471 5,706 July 1,694 1,803 August 1,818 1,727 September 1,560 1,732 July-September 5,072 5,262 Total 3/ 21,476 22,562 Monthly average 1,790 1,880 1/ Customs value basis. 2/ Revised. 3/ Totals may not add due to rounding. 4 U.S. Food Imports Total meats, as well as increased demand for varieties not $19.4 Billion in 1989 harvested in the United States. The import share of certain vegetables also rose over The United States imported $22.5 billion of agricultural the decade. Asparagus imports rose from 10 percent commodities in 1989, including $19.4 billion of food of domestic consumption in 1980 to 22 percent in items. The remaining commodities consisted of 1989. Imports of broccoli and cauliflower used for nonfood items, such as cotton, tobacco, wool, natural processing rose even more, from 9 percent of domestic rubber, silk, and crude drugs. Another $5.2 billion was consumption to 61 percent for broccoli and from 8 spent on fish, bringing total value of imported food to percent to 46 percent for cauliflower. Most of the $24.6 billion. imported processed broccoli and cauliflower comes from Mexico, where production costs are lower and The share of domestic consumption that is imported where U.S. processing firms have expanded their varies by commodity. The United States imports production capacity.1 Imports have also increased in almost 100 percent of all the "noncompetitive" noncompetitive tropical vegetables, such as taro, agricultural commodities for domestic consump¬ yams, chayote squash, and cassava.2 tion. These include bananas, coffee, tea, cocoa, and tropical oils. However, the United States im¬ Imports of frozen citrus juice, however, while high in ports only minimal quantities of products it can pro¬ the mid-1980’s, are beginning to show signs of duce in abundance domestically, such as dairy dropping off as Florida citrus growers recover from products, eggs, certain fruits and vegetables, and several severe winter freezes which reduced red meat. production. Even so, imports still made up 31 percent of 1989 domestic consumption of frozen citrus juices, Methodology compared with 13 percent in 1980. Import shares are calculated from supply and utilization Also growing in the 1980’s was the import share of balance sheets. An import share is the total quantity of domestic grape consumption. Most of the grapes the commodity imported divided by the quantity produced in the United States go into processing, available for domestic human food consumption. especially wine production. Therefore, to meet the Ending stocks and any export of the imported demand for table grapes, the United States has been commodity are excluded so the ratios may slightly importing, since the late-1980’s, over 30 percent of all overstate the importance of imports on the domestic grapes consumed. market. Also, a portion of the imports may be diverted to nonfood use, such as using grains for feed, seed, Imports Supplement Domestic Production alcohol, and fuel production and industrial uses. Although the United States is able to produce an Imports of many processed and packaged foods are abundance of fruits and vegetables, imports are often not accounted for in table 5. Sweetener data, for necessary to provide a year-round supply of fresh example, do not include sweeteners contained in produce, such as eggplant, tomatoes, artichokes, and imports of confectionery products, bakery goods, garlic. Imports of these commodities have been frozen or canned fruits and vegetables, jams, jellies, especially high during the winter and early spring preserves, sauces, and soft drinks. Likewise, beef, months and have remained at constant levels vegetable, and pasta data are not included in frozen throughout the 1980’s. food information. Tree nut imports have leveled off at about 25 percent Increasing Imports of Certain Foods of domestic consumption. Most imports, such as filberts, Brazil nuts, pignolias, chestnuts, and cashews, Throughout the 1980’s, the import share of certain foods has risen steadily. For example, the import share of fish and shellfish domestically consumed rose from 44 percent in 1980 to 55 percent in 1989, 1 U.S. Department of Agriculture, Economic Research Service, Vegetables and Specialties. Situation and Outlook. April 1991. most likely because of a change in the American diet toward lower cholesterol proteins as alternatives to red 2 ibid. 5 are not produced in the United States in quantities The United States is one of the largest producers of sufficient to meet domestic needs. wheat and feed grains and the largest exporter of these grains. It has, however, imported minor feed Few Imports of Dairy or Grains grains, such as rye and oats, during the 1980’s primarily because of low production during mid¬ The United States imports only small quantities of decade as planting of these crops lost out to higher commodities that it produces in abundance and that valued crops like corn. When Federal programs can be stored for long periods. To reduce regular encouraged planting of these minor feed grains surpluses of milk, cheese, and butter, the Government and prices improved, imports declined. (Susan L. periodically administers inventory management, Pollack, Commodity Trade and Analysis Branch, domestic feeding, and export programs. 202-219-0822) 6