Source:  Tom Johnston, MEATINGPLACE.COM, 2/24/11

USDA said today that agricultural exports are expected to reach a record $135 billion in fiscal year 2011, up $9 billion from the November projection and $26.8 billion above 2010.

The agency’s quarterly forecast showed that exports are on track to eclipse the previous record set in 2008 by more than $20 billion. Meanwhile, export value is expected to grow 25 percent and volume 10 percent, compared with fiscal year 2010.

Agriculture Secretary Tom Vilsack also noted in a news release that the agriculture trade surplus is expected to set a new high mark at $47.5 billion, far exceeding the previous record of $36 billion established in 2008.

“Today’s numbers are more good news not just for farmers and ranchers and the businesses and communities that support them, but for our nation’s economy as a whole,” Vilsack said. “Every $1 billion in agricultural exports generates an additional $1.4 billion in economic activity and supports 8,000 jobs.”

USDA credits sharply higher unit values for grains, soybeans and cotton for most of the forecast increase in agricultural exports. A weak U.S. dollar, low interest rates and strengthening stock markets are creating a fruitful export climate overall.

Animal products
Meanwhile, strong global demand for dairy and animal products has pushed that projection up by a combined $1 billion.

The fiscal 2011 export forecast for livestock, poultry and dairy is raised $1.9 billion to a record $24.9 billion, with dairy products and animal by-products leading the charge.

Economic recovery has bolstered demand for hides and skins, particularly in China and South Korea. Other animal by-products (lard, tallow, grease, and meat and bone meal) are strengthening in volumes and unit values, thanks to soaring feed unit values and tight supplies.

Exports of poultry products and beef are forecast up $140 million apiece, driven by demand in Asia and its economic recovery. Pork exports, meanwhile, are raised $100 million on higher unit values.
President Obama’s National Export Initiative goal aims to double all U.S. exports by the end of 2014.

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