November 23, 2017

China Bumps Canada, Mexico Out Of Top Spot As Buyer Of Ag Goods

New numbers out this week show that China is the new number one buyer of American agricultural goods.  Fiscal year 2017 numbers show that China bought $22 billion worth of agricultural products, which is a large jump from the $19.2 billion purchased the year before. The increase meant China moved into the number one customer spot, pushing America’s NAFTA partners down a space each. Now second-place Canada purchased $20.4 billion worth of goods, a slight jump over the previous year. Number three Mexico bought six percent more goods in the fiscal year 2017, coming in at $18.6 billion.

USDA says the total number of exports jumped $10 billion dollars, coming in at $140.5 billion, the third-highest on record. Farmers produced another record corn crop and the protein sector continues to expand, so it’s going to take expanded exports to chew through the extra product that’s available.  Ag Secretary Sonny Perdue says the ag sector posted an annual trade surplus of $21.3 billion, an amazing 30 percent rise over the previous year.

Its important to remember that fiscal year measurements run September to September, so grain sales included in this number are largely the result of 2016 sales.  Exports of both corn and soybeans were stellar over that time frame, but sales so far of 2017 are running well behind schedule.  With massive amounts of carryout for both products, experts say export growth will be pivotal to improving prices.

USDA Now Accepting Applications For Trade Mission To Central America

U.S. companies have a unique opportunity to grow their food and agricultural exports to Central America’s Northern Triangle of Guatemala, El Salvador and Honduras during a USDA  trade mission February 26-March 1, 2018.

The mission will be based in Guatemala, but participants will be able to connect with potential customers from Honduras and El Salvador as well through targeted business meetings arranged by local staff from USDA’s Foreign Agricultural Service. The itinerary also includes briefings with government and industry leaders and visits to local retail outlets and food processing and handling facilities.

Why the Northern Triangle of Central America?

Central America’s Northern Triangle – Guatemala, Honduras and El Salvador – is a convenient and growing market for U.S. agricultural exports. The U.S.-Central America Free Trade Agreement (CAFTA-DR) entered into force in all three countries in 2006 and, since then, U.S. farm and food exports have more than doubled. More than 95 percent of U.S. agricultural products enjoy duty-free access under CAFTA-DR.

In 2016, Guatemala, Honduras and El Salvador imported nearly $5.9 billion of agricultural products –more than 40 percent of which came from the United States, which is the top supplier to all three countries. Throughout the region, rising GDPs and rapidly expanding urban and middle-class populations are expected to lead to continued growth in demand for food and farm products over the coming decade.

FileApplication Form

 Deadline for application submission is December 7, 2017.  

Trade Talk 2017: Rabo AgriFinance and the Livestock Industry

During Trade Talk at the National Association of Farm Broadcasting convention in Kansas City, we visited with Don Close, VP, Food & Agribusiness Research and Advisory, Animal Protein for Rabo AgriFinance.

Close will offer a market presentation at the upcoming annual convention and trade show of the South Dakota Cattlemen’s Association, at the Ramkota Hotel in Pierre, November 28-30.  You can view the convention agenda here.

In Kansas City, we discussed the current cattle market, trade developments, and consumer trends.

Agribusiness Lending is a cornerstone at Rabobank.

They can help you evaluate the unique needs of your agribusiness and then customize the right financing solutions to meet them. We structure solutions on a regional, case-by-case basis – so you can count on personalized underwriting and a higher level of personal service than you’ll typically find elsewhere.

Whether you’re an individual producer or a highly diversified corporate enterprise, you’ll find a complete range of lending solutions at Rabobank to help your ambitions become a reality.

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