March 15, 2021

US official highlights importance of trade to US agriculture

Jason Hafemeister, the United States' Acting Deputy Under Secretary for Trade and Foreign Agricultural Affairs (TFAA), recently presented on both past trends and future expectations of US soy to create a full picture of the country's agricultural trade during a US Soybean Export Council's (USSEC) learning session.

"Trade is critical to US agriculture," Hafemeister said, explaining that, all sectors export and most have a trade surplus.

Over 60% of total US exports are sold and shipped to six top customers: China, Canada, the European Union, Japan, Mexico and South Korea. Maintaining relationships with these six export markets remains a priority in ensuring a consistent future for agricultural trade.

However, Hafemeister said the other 40% of US exports, the "long tail", are still important. Their growing populations and growing markets make them markets of potential. These exports will be getting some attention in the coming years.

The narrative changes slightly when looking at soybean exports specifically. China dominates soybean exports, Hafemeister said. But there have been fluctuations in recent years.

The impact of trade wars was discussed throughout the session, including changes in market share, prices and more. Today, the US is in more stiff competition in China, especially with Brazil.

Hafemeister is hopeful this market share will improve moving forward.

- USSEC