Record U.S. ag exports to continue through 2008

Record U.S. ag exports to continue through 2008 The U.S. Department of Agriculture said exports of U.S.-grown commodities will reach a record $79 billion in fiscal 2007, and should reach as much as $83.5 billion by the end of fiscal 2008.
   The USDA’s fiscal 2007 agricultural export forecast beat last year’s record of $68.6 billion.
   The robust U.S. agricultural export forecasts “reflect tight world markets for grains and oilseeds,” said U.S. Agriculture Secretary Mike Johanns in a statement. “U.S. farmers are hard at work to supply these markets, both at home and abroad.”
   The USDA expects export gains in fiscal 2008 based on record sales of bulk grains, oilseeds, cotton and high-value horticultural and livestock products. In particular, the department forecasts a record year for U.S. corn exports at $600 million in fiscal 2008.
   The USDA noted that China’s demand for soybeans and cotton remains strong, and developments in the bio-diesel market will increase Europe’s demand for soybeans. Horticultural exports are expected to rise by $800 million, supported by strong overseas demand and a weakened U.S. dollar. Beef exports are anticipated to increase by $400 million due to larger volumes.
   “Trade agreements are having a huge impact,” Johanns said. “If Congress ratifies the recently signed free trade agreements with Colombia, Korea, Panama and Peru, our producers will have increased access to some extremely important markets.”
   According to the USDA, U.S. agricultural imports in fiscal 2008 will reach $75 billion, up $4.5 billion from the 2007 estimate, accounting for an $8.5 billion trade surplus in 2008. The biggest import gains for fiscal 2008 include fresh and processed fruits, coffee beans and other tropical products, bulk grains, and wines and beer.
   The USDA’s Economic Research Service, the Foreign Agricultural Service, and the World Agricultural Outlook Board release agricultural trade forecasts quarterly. The summary and full report of USDA’s current Outlook for U.S. Agricultural Exports may be accessed from either the Economic Research Service’s Web site at www.ers.usda.govor the Foreign Agricultural Service’s Web site at www.fas.usda.gov. The next quarterly report will be released in November.