September 1, 2008

Livestock, poultry and dairy exports are forecast at a record US$21.9 billion in fiscal 2008, according to the USDA's Agricultural Trade Outlook released on Thursday (August 28, 2008).

Pork exports are expected to hit a record high of US$4.2 billion, while poultry, beef and dairy products will register small increases. The report expects higher volumes to support increased export values.

Pork export forecast is increased due to a robust demand from China, which is experiencing rising incomes but lower domestic supplies. Key markets that include China, Japan, Russia, Mexico and Canada, are expected to boost pork exports by 685,000 tonnes and US$1.6 billion, according to the report.

Dairy exports this year are raised to a record US$4 billion, due to droughts in Australia and New Zealand, as well as strong demand from North American and Asian markets.

Broiler exports are raised to US$3.2 billion due to stronger demand from China, Russia, and Mexico. Beef exports are also increased to US$2.4 billion on higher exports to Canada, Mexico, and Japan.

US agricultural product sales to China is expected to hit a record high of US$12.4 billion, with most of the increase attributed to much higher soy prices and rising soy shipments. Annual sales gains for cotton, pork and poultry meat will also support the overall sales increase to China, as the country moves ahead of the EU to become the fourth largest market for US agricultural products.

Shipment forecast to Japan is increased US$2.9 billion from 2007, while exports to South Korea are also projected to increase US$2.4 billion over last year.