trade

Quality data is paramount when it comes to helping markets reach their full potential. This is especially true in the agriculture industry where businesses are always searching for reliable data that can help them make important decisions like what to produce or how much to buy. I recently joined a team of USDA employees from my agency -- the Agricultural Marketing Service (AMS) -- and the Foreign Agricultural Service (FAS) that traveled to Brazil to share how we collect and disseminate key market data to help buyers and sellers make informed decisions.

Our trip to Brazil presented several opportunities to increase transparency in the inter-connected global marketplace. The primary purpose of the trip to Brasilia was to participate in the Regular Meeting of the Market Information for the Organization of the Americas (MIOA), which brings together a network of 33 member countries to collect, process, analyze, and disseminate information relative to markets and agricultural commodities.

Growing up on a small crop and hog farm in Perry County, Illinois, I have memories as a child listening to the radio with my father or uncle to hear the latest agriculture news. As farmers, they relied on and trusted receiving weather, farm, and market updates from the local radio station, WDQN. Some days my father would nod in agreement liking what he heard on the radio and other days my uncle would shake his head and turn the volume down. But the important thing was they always tuned in and listened.

As a child, I never guessed that I would grow up to be on the receiving end of interviews to report the crop, livestock, and agriculture census numbers that we listened for.  Having worked for USDA’s National Agricultural Statistics Service (NASS) for 30 years, I have had the pleasure to talk with a great number of farm broadcasters. Folks who are dedicated to delivering the information and stories to farmers, ranchers, and rural America.

Breaking into a new market can be a challenge for a business – especially if that market is half a world away, with a different culture and language. But there is help available. USDA’s Foreign Agricultural Service (FAS) has offices across the globe that assist American agricultural businesses with exporting and navigating international markets.

One goal of our office here in Mumbai is to help U.S. producers do business in India. For example, we help American exporters find reliable buyers, follow technical regulations, and negotiate cultural and business practices. We also provide them with research on market trends and other valuable market intelligence.

Over the past decade, the production and market share of organic agriculture has increased globally, with significant growth in South and Central America. In 2008, the Inter-American Commission for Organic Agriculture (ICOA) was founded to support organic agriculture in the Americas and facilitate the trade of organic products. 

ICOA consists of agriculture officials from 18 member countries in Latin America and aims to harmonize organic standards, strengthen control systems and support market development in Latin America. The United States sources many organic products from Latin America including bananas, apples, pears, wine, strawberries, raspberries, blueberries, coffee, mangoes, papayas, winter vegetables and more.

Fall is harvest time and our rural communities are bustling with activity.  For American soybean farmers the days start in the early dawn, and they stay until the last light is gone, tending fields that seem to stretch to the end of the world.  But success for them relies on more than just growing a good crop.  Their soybeans must also move efficiently from the fields to the far corners of the world.

Helping farmers understand the importance and impact of transportation trends is one of the services provided by USDA’s Agricultural Marketing Service (AMS).  AMS helps growers and exporters by gathering agricultural transportation data for a wide array of publications that are available to everyone on our agricultural transportation website.

On a recent trip to Africa, I spent time in Ethiopia witnessing how USDA’s work there is helping the country’s agricultural sector to grow and thrive, especially for women farmers.

I visited a small-scale, woman-owned dairy farm near the town of Mojo, about 50 miles south of Addis Ababa, to see how the Feed Enhancement for Ethiopian Development (FEED) project, an activity supported by USDA’s Food for Progress program, has boosted milk production through better feeding practices and farm management.

Last week, we celebrated another victory for the global organic community – the announcement of an organic equivalency agreement between the U.S. and the Republic of Korea. We are thrilled with the outcome!

Beginning July 1, 2014, processed organic products certified in Korea or in the U.S. may be sold as organic in either country, eliminating significant barriers and creating opportunities for American businesses across the organic supply chain as well as setting the foundation for additional organic agricultural trade agreements. Consumers in Korea will now be able to enjoy a wide range of U.S. organic exports including condiments, cereal, baby food, frozen meals, milk, and other processed products.

What does a pomegranate need to do to get from an orchard in California to a dining table in Canada? The pomegranate doesn’t have to do anything, but U.S. growers must prepare the ground for their products in more ways than one. It takes knowledge and resources to bring U.S. food and agricultural products to the global marketplace – a daunting challenge for many farmers and small businesses.

But help is available. USDA’s Foreign Agricultural Service (FAS) supports four non-profit trade organizations, called State Regional Trade Groups (SRTGs), that provide hands-on support and assistance to U.S. small-and medium-size companies seeking to build a global business. SRTGs, working in conjunction with the state departments of agriculture in their respective regions, can help beginning exporters with everything from learning the fundamentals of exporting to identifying overseas opportunities and finding potential distributors. With support from FAS’ Market Access Program, SRTGs also help fund international marketing campaigns and promote U.S. farm and food products overseas.

Agriculture is one of the brightest spots in our economy, and the American brand of agriculture is surging in popularity worldwide. Trade and market access support good-paying jobs and drives economic growth. A strong rural economy is critical to the overall economic health of the United States.

The past five years represent the strongest in history for agricultural trade with U.S. agricultural product exports totaling $619 billion over five years. Agricultural exports in fiscal year 2013 alone reached $140.9 billion, the highest level on record, and supported nearly one million jobs here at home.

When we shop for items like orange juice at the grocery store, we often take for granted what goes on behind the scenes before we can enjoy these quality foods. Our nation’s producers and processors do not take it for granted. These products represent their livelihood, and the ability to reach new customers—especially through the export market—is critical to their businesses’ success. Recently, the USDA’s Agricultural Marketing Service (AMS) helped four businesses from Florida avert a costly 54% tariff, enabling them to continue to export frozen concentrated orange juice duty free to South Korea.

The US – Korea Free Trade Agreement (KORUS FTA) exempts U.S. orange juice from a 54% tariff when exported to Korea. However, in March 2013 Korean officials questioned the domestic origin of orange juice exported from the Sunshine State to the East Asian country. Without proof that the juice came from the U.S., exporters faced the costly tariff and the volume of exports to South Korea decreased. It was a huge loss for the Florida citrus industry which creates 76,000 jobs and pumps $9 billion into its local economy.