Page 48 - Export or Bust eBook

Last year, the U.S. pork industry exported $1.1 billion of product to China, making that country the
number-two value market for U.S. pork.

Competitors ramp up

Competitors recognize the potential openings that may result from inaction or trade spats and are forging
ahead - sealing deals and breaking down barriers in markets near and dear to the U.S. For example, the
European Union (EU) and Japan concluded negotiations to create the world’s largest economic area in
December. And last month, the EU and Mexico announced plans to eliminate tariffs for almost all goods
traded between their respective countries.

Adding to the challenges: Competitors in foreign countries receive substantially more public support
than U.S. farmers and agricultural exporters when it comes to boosting their exports. In 2011, competing
government support for agricultural exports from just 12 countries and the EU central government (not
including individual member states) was $700 million per year, according to AgExportsCount, a
coalition of over 75 organizations representing farmers and ranchers, fishermen and forest-product
producers, cooperatives, small businesses, regional trade organizations and state departments of
agriculture.

“For comparison, the U.S. budgets approximately $235 million annually in public funds through MAP
and FMD for agricultural export promotion and market development,” the group noted. They are
supporting efforts in the next farm bill to significantly ramp up funding, including a bill introduced by
Sen. Angus King, I-Maine, the “Cultivating Revitalization by Expanding American Agricultural Trade
and Exports Act” that would steadily raise MAP funding from $200 million for 2018 to $400 million for
2023. FMD funding would also double from $34.5 million for 2018 to $69 million for 2023.

Programs like MAP and FMD are “absolutely essential,” says Dan Halstrom, U.S. Meat Export
Federation (USMEF) president and CEO. “Without this funding, it would be very difficult to
maintain market share in established markets or to expand the presence of U.S. red meat into emerging
markets. These investments are especially important for assisting small and medium-sized businesses
that want to expand into the export markets, but do not yet have company personnel or resources located
in international markets.”

Playing offense

But despite all the growing international competition and market uncertainty, don’t expect U.S.
producers to duck and run. If anything, farmers and ranchers, along with their export-focused
organizations and their federal partners, are working even harder around the globe to build relationships
and further expand their access to international markets.

“We’re leaving no stone unturned,” emphasized USDA's Undersecretary for Trade and Foreign
Agricultural Affairs Ted McKinney, who has been working on building new export opportunities and
traveling the globe from almost the day he was sworn into office. “I think the “secret sauce” - if I can
use that phrase - is really going to be the time you spend with trading partners ... the degree to which you
take an ag trade mission the ... the degree to which I, or others like me, are there and showing that
interest.”

46 www.Agri-Pulse.com