Increased Demand from China Drives Ag Exports Higher

WASHINGTON, DC – Ag exports rebounded in 2020 with a 7 percent ($9 billion) increase from the previous year, according to data just released by the Foreign Agriculture Service (FAS). The 2020 U.S. Agricultural Export Yearbook from FAS, provides a statistical summary of U.S. agricultural commodity exports to the world. Record exports of $26.4 billion to China were a $12.6 billion increase from 2019, which offset a $3.5 billion decrease in exports to the rest of the world. The increase, according to FAS, was due in part to China establishing a process for importers to seek exclusions from retaliatory Section 301 tariffs on U.S. products, including agricultural products. China also removed certain structural barriers to trade, expanding market access for a variety of U.S. agricultural exports in the world’s largest food import market. At the same time, increased U.S. competitiveness, due to production issues with foreign competitors and increased grain and oilseed prices in China, led to a surge in demand for U.S. exports. The good news almost stops there though, because, among the other top 15 markets, U.S. exports declined to 10 of those destinations. The Philippines was a success story in 2020, increasing imports by 9 percent, led by greater values of dairy products and soybean meal. Egypt increased imports from the U.S. by 24 percent led by larger purchases of soybeans, dairy products, and tree nuts. Mexico experienced a deep recession contributing to a 6 percent decline in imports from the United States.
(SOURCE: All Ag News)