agricultural exports

Two years ago this month, the United States and the European Union (EU) implemented an organic equivalence arrangement, meaning products that are certified as organic in the U.S. can also be sold as organic in the EU, and vice versa. This arrangement broke down many of the barriers that organic producers, especially small and medium-sized farmers, were facing in exporting their goods to one of their largest markets. It has also proved to be a good example of how we can recognize each others' systems and work together across borders to arrive at beneficial agreements.

The U.S. and EU have some of the strongest regulatory protections in the world, and the organic equivalence arrangement recognizes these standards and uses them for everyone’s benefit. Before the agreement, growers and companies wanting to trade products on both sides of the Atlantic had to obtain separate certifications to two different standards, which meant a double set of fees, inspections, and paperwork. Now, if a product is certified organic by one party, it can bear both the USDA organic seal and the EU organic logo, without going through that second certification process. This is possible because the EU and the U.S. have recognized that though our regulatory systems are different, they both produce high quality organic food and agricultural products under rigorous programs. Secretary Vilsack, while addressing the EU agricultural ministers earlier this week, had the same message of cooperation in regards to the Transatlantic Trade and Investment Partnership (T-TIP).

Every June, USDA joins the rest of the country to celebrate Dairy Month. It is a time to thank our nation’s dairy producers and processors for their tireless work to produce quality dairy products like milk, cheese, and yogurt. Here at USDA, besides getting our fill of our favorite dairy products, we celebrate our nation’s dairy industry every day by finding new markets where people can enjoy their products. This often entails working with other countries’ governments to negotiate export and import requirements as well as helping businesses meet these requirements.

Our nation’s dairy exporters reach new markets with the help of the Agricultural Marketing Service (AMS). Export certificates are often the critical piece in the trade puzzle. On this front, AMS offers certificates for more than 80% of the countries that accept U.S. dairy exports. Our Dairy Programs can verify that businesses’ dairy products meet export requirements. The AMS Dairy Grading Branch provides export certificates for products or conditions for which they have documentation for or from plants they inspect.

It seemed as though the entire world was in Shanghai in mid-May, celebrating World Trade Week at SIAL China, Asia’s largest food and beverage trade show. The booming, bustling city was the perfect place for a show of its magnitude, where 99 U.S. companies and organizations showcased their products to the main players from China’s food and hospitality sectors.

The USA Pavilion was the largest international venue at the event and, of the U.S. companies exhibiting there, over half (54) were small or medium-sized businesses, 23 were new to the Chinese market, 16 were minority-owned and nine were completely new to exporting.

This week, I visited Canonsburg, Pennsylvania, a small city outside of my hometown of Pittsburgh to kick off the first of five Made in Rural America forums designed to help rural small businesses access the information they need to grow through exports.

The global appetite for high-quality, American-made products is well established. Over the past five years, rural America has achieved record agricultural exports, but the rural economy is diverse. Last fiscal year, agricultural exports reached a record $140.9 billion and we are on track for another record year, with fiscal year 2014 agricultural exports projected to reach $149.5 billion. Last year was also the fourth-straight record-setting year for U.S. exports as a whole, reaching $2.3 trillion.

2013 was a record year for America agricultural exports, with $141 billion in sales and an additional $180 billion in related business activity. We expect even greater things in 2014, when international sales of U.S. farm and food products are expected to reach $149.5 billion. Taken as a whole, these numbers are impressive – but they impress me even more when I think about all the American companies who made this happen.

Many of these companies are based in rural communities, and they employ more than a million U.S. workers to produce products that are valued throughout the world. It’s amazing to think about those individuals, from small towns across America, who produce everything from cheese to pet food to distillers dried grains. It makes me proud of the work USDA is doing to connect these rural producers to international markets.

The modern Foreign Service is celebrating its 90^th anniversary this year, as is the American Foreign Service Association. In 1924, President Calvin Coolidge signed the Foreign Service Act into law, combining the United States diplomatic and consular services to create the United States Foreign Service. By that time, the U.S. Department of Agriculture had already been posting employees overseas for 42 years.

Thanks to President Coolidge’s curiosity, we possess a rare snapshot of USDA international activities in 1924. On December 22 of that year, Coolidge, in his characteristically laconic style, sent a one-line letter to Secretary of Agriculture Howard Gore: “I shall appreciate it if you will send me as soon as possible a list of the representatives the Department may have abroad, their posts and just what they are doing.”  Surviving copies of urgent correspondence in the National Archives in College Park testify to the flurry of activity that ensued over the next two weeks as a data call went out to all USDA field offices.

Northeast China has been a difficult market for U.S. companies to crack in the past. The region is traditionally an area of farming and manufacturing, making it difficult to find a place for U.S. agricultural exports. But recent economic growth and development have sent the region’s agricultural imports soaring, steadily outpacing the rest of China, and American companies are taking notice. Last week, representatives from nine state departments of agriculture and 28 U.S. companies participated in a USDA trade mission to learn and explore the opportunities for trade in the region.

Under Secretary for Farm and Foreign Agricultural Services Michael Scuse led the agricultural trade mission to Dalian, Shenyang and Changchun to learn about China’s rapidly evolving market conditions and business environment. China is the largest market for U.S. food and farm products – U.S. agricultural exports to the country tripled over the last decade, now accounting for nearly 20 percent of all foreign sales of U.S. agricultural products. USDA’s trade mission to China during World Trade Month will open new doors and help farmers and ranchers capitalize on the tremendous export potential for American agricultural products.

Driving down a rural road, admiring the expansive fields of corn and soybeans, I stopped at a rail crossing to wait for what seemed like an endless train of cars filled with grain.  My idle mind wondered, where are all those tons of grain headed, where was its final destination?  For anyone else, it may just be curiosity. But for me and those who work in my division within USDA’s Agricultural Marketing Service (AMS), it’s our job to answer those questions.

We understand that for stakeholders within the agricultural industry—farmers, grain mill operators, shippers and exporters—the answers are critical.  Sound business decisions require knowledge about what is happening with the transportation of agricultural products, both in the domestic and international marketplace.

Spring is here and brings with it many fresh healthy foods, including blueberries. Known for their antioxidants, vitamins and fiber, blueberries are a healthy option that is becoming more popular around the world and the U.S. blueberry industry is taking advantage of this demand with the help of the USDA’s Foreign Agricultural Service (FAS) Market Access Program (MAP).

Through MAP, FAS partners with U.S. agricultural trade associations, cooperatives, state regional trade groups and small businesses to share the costs of overseas marketing and promotional activities that help build commercial export markets for U.S. agricultural products and commodities.

This week, President Obama released USDA’s fiscal year 2015 budget proposal, which supports our ongoing work to create jobs and opportunity in rural America.

The budget builds on the new opportunities available to us through the recently-passed 2014 Farm Bill to achieve reform and results for the American taxpayer; foster opportunity for the men and women living, working and raising families in rural America; and support innovation through strategic, future-focused investments.

My team at USDA has been hard at work identifying everything that will be required—regulations, guidance and other activities—to develop a plan to implement the new Farm Bill.