USDA expects record agricultural exports for 2021
May 28, 2021
The U.S. Department of Agriculture’s quarterly agricultural trade forecast projects fiscal year 2021 U.S. agricultural exports at $ 164 billion – the highest total on record.
This is an increase of $ 28 billion, or 21%, from the previous year’s total, and an increase of $ 7 billion from the USDA’s previous forecast for fiscal 2021 released in February. The annual export record of $ 152.3 billion was set in fiscal 2014.
“America’s agricultural trade has proven to be extremely resilient in the face of a global pandemic and economic contraction. This strength is reflected in the current USDA export forecast, ”Agriculture Secretary Tom Vilsack said. “As we conclude World Trade Month, it is clear that trade remains a critical engine fueling the agricultural economy and the US economy as a whole. The estimate shows that our agricultural trading partners are responding to a return to US certainty and reliability. Action on the United States-Mexico-Canada Agreement also clarified that our business partners must obey the rules. Ensuring that all U.S. producers and exporters have access to global markets is essential to better rebuild and ensure the continued strength and resilience of rural America.
The main factors behind the surge in exports include a record outlook for China, record export volumes and values for a number of key products, significantly higher commodity prices and reduced foreign competition.
China is set to return to the top as the United States’ top customer, with US exports forecast at $ 35 billion, eclipsing the previous record of $ 29.6 billion set in 2014. That growth is driven by by Chinese demand for soybeans and corn. The other major markets, in order, are Canada, Mexico, Japan, the European Union and South Korea, with demand remaining strong across the board.
The USDA predicts that total exports of bulk products and meat will reach record levels in volume and value during fiscal year 2021. On the bulk product side, this is true for both corn exports. and soybeans, with the value of sorghum exports also being record high. On the meat side, beef and pork export values and volumes are expected to reach an all-time high, as is the volume of broiler meat.
TheCattleSite News Office