WASHINGTON: Secretary Vilsack arrives in China this weekend. Over the past decade, the United States’ agricultural exports to China have risen sharply, propelling China into its position as the fastest-growing and highest-value export destination for U.S. farm and food products. In 2011, China surpassed Canada to become the top U.S. market and it has since retained that position.
In fiscal year (FY) 2015, U.S. agriculture and related exports to China totaled $25.9 billion, comprising approximately 16 percent of all U.S. agricultural exports.
While the rapid growth in U.S. farm exports to China has plateaued in recent years, many macroeconomic conditions signal the potential for continued long-term growth and trade expansion in China. An increasingly urban population, a growing middle class, and higher disposable incomes have increased Chinese consumers’ ability to diversify their diets and purchase high-value, protein-rich foods.
USDA forecasts a considerable increase in China’s imports of coarse grains, soybeans, cotton, beef, and pork by 2024. Furthermore, growth in U.S. exports of horticultural goods, dairy, and alcoholic beverages to China bode well for future opportunities within the consumer-oriented products sector.
Provided the U.S.-China trade partnership remains strong, U.S. agricultural producers are well positioned to capitalize on China’s economic development and consumer demand into the foreseeable future.
The value of U.S. agricultural and related exports to China has more than tripled over the last 10 years, reaching a record $29.6 billion in FY 2014 before declining slightly in FY 2015.
Due to China’s severe cropland shortage and inexpensive labor force, U.S. exports to the country have traditionally been dominated by land-intensive bulk commodities that China then processes for domestic consumption or export. More recently, China’s booming demand for luxury items and ready-to-eat foods has created new opportunities for the United States, particularly for exporters of intermediate products such as oils, fats, flour, meal, and sweeteners, and consumer-oriented products such as processed foods, meats, dairy, eggs, tree nuts, and wine and beer.
U.S. exports of bulk, intermediate, and agricultural-related products, such as forest and fish products, have each increased approximately 250 percent since 2006. Exports of consumer-oriented products grew 150 percent over the same period.
