USDA forecasts $59 billion in U.S. ag exports for fiscal 2005
The U.S. Department of Agriculture raised its fiscal 2005 forecast for American agricultural exports from $56 billion to $59 billion, making it the third highest export sales year following fiscal years 2004 and 1996.
“This new export forecast clearly demonstrates the strength of the U.S. agricultural sector,” said U.S. Agriculture Secretary Mike Johanns, in a Feb. 24 statement.
In 2005, American farmers are experiencing increased competition and lower prices for bulk commodities such as grains, oilseeds and cotton. On the other hand, there is increased demand for some U.S. high-value products, which are supported on the global market by the weaker U.S. dollar, the USDA said.
Horticultural sales are forecast at a record $14.5 billion. “Broad-based gains for many fruits and vegetables as well as wines and essential oils are expected, largely due to higher prices,” the USDA said.
According to USDA, pork exports are also expected to reach a record volume and value with strong demand from Japan, Mexico and Canada. Strong gains are expected for dairy exports, mainly supported by non-fat dry milk powder.
The USDA forecast for fiscal 2005 states that Canada will remain the top export market for U.S. agricultural products at a projected $10.2 billion, followed by Mexico at $8.5 billion and Japan at $7 billion. Exports sales to the European Union are expected to reach about $7 billion and China at $4.6 billion.
Agricultural imports are forecast at a record $58 billion, continuing a 35-year upward trend that “has advanced at a faster pace since 2003,” the USDA said.
“Demand for imports continues to rise, but most of the current increase in import value is due to higher prices,” the USDA said. “Consistent with long-term trends, rising imports of fresh and processed fruits and vegetables, wines, beer and essential oils account for more than half of the gain, but large beef and snack food purchases have also been significant in recent years.”
The complete USDA report, “Outlook for U.S. Agricultural Trade,” is available on line at http://www.ers.usda.gov .