March 8, 2010

USDA promises stronger agricultural export strategy

The US government would overhaul its strategy for promoting agricultural products abroad and work to increase the acceptance of biotechnology in foreign countries in a bid to improve the economy.

US Agriculture Secretary Tom Vilsack, speaking at the annual Commodity Classic conference, said the USDA would drop its "one-size fits all" approach to promoting agricultural exports in favour of tailored marketing programmes for different countries. The effort is part of President Barack Obama's goal of doubling all US exports within the next five years.

"One size does not fit all," Vilsack told a crowd of grain and oilseed producers from across the country who gathered for the conference.

In explaining the new approach, Vilsack said the USDA will put resources in countries with "growth potential" such as South Africa to educate them on the quality of US products. China has a rapidly rising middle class but needs special attention to address technical concerns about phytosanitary issues, he said.

Agriculture is one of the few US sectors to generate a significant trade surplus, which was US$23.2 billion during the year that ended September 30, 2009. More than a quarter of farm revenue is directly tied to exports.

The USDA estimates agricultural exports this year will reach US$100 billion, the second-highest level ever. That is up from less than US$50 billion 10 years ago.

Growth in agricultural exports would have a significant impact on the economy because every US$1 billion of agricultural trade generates 9,000 jobs, Vilsack said.

Farmers at the conference were cautiously optimistic about the plan. They support expanded export opportunities but said they wanted to see whether the new strategy produces results.

"We have to be optimistic about anything that comes to us," said Bret Davis, who grows corn, soy and wheat on about 3,400 acres in Ohio. "It's just getting over the hoop of just talking about it."

For biotechnology, Vilsack said the USDA would be more aggressive in educating foreign governments and producers about genetically modified US products. The European Union, which imported US$7.6 billion of US agricultural goods in fiscal year 2009, turns up its nose at US corn that is genetically modified as well as beef treated with hormones widely used in the US cattle industry.

Davis said more education about biotechnology was also needed at home. There is still "a lot of pushback" from US consumers worried about genetically modified products, he said.