Archive for November, 2013

JOC Insights by Mario Moreno: US Dairy, Produce, and Egg Exports

November 19, 2013

DAIRY, PRODUCE, & EGG EXPORTS ON MARKED UPTREND

U.S. exporters of dairy produce and eggs (HS code 04) must be thrilled to see foreign demand for their product more than quadruple in the last 10 years. Except for 2009, dairy produce and egg exports by dollar value have grown each year since 2003. Although dairy produce and egg exports declined in the second half of 2012, they quickly recovered in early 2013, partly because of avian flu outbreaks in Mexico and China, which spurred demand for imported eggs. For the first seven months of 2013, total dairy produce and egg exports were up 22 percent; for all of 2013, exports are expected to advance by a remarkable 38 percent year-over-year and total $5.8 billion. The trend for U.S. dairy produce and egg exports is clear: upward.

US Exports of Dairy Produce and Eggs

CHINA GAINS MARKET SHARE, MEXICO LOSES

Mexico is by far the largest market for U.S. dairy produce and eggs, but its market share has declined this year while China’s share has increased. The avian flu, which unleashed in Mexico in 2012 and continued this year, spurred demand for imported eggs. Nevertheless, the demand from Mexico this year was not as strong as China’s. The U.S.’s No. 2 market China imported 50% more U.S. dairy produce and eggs through July, while Mexico imported 30% more. The avian flu also impacted China’s production of poultry and eggs this year, which partly explains the strong demand for U.S. eggs. China’s market share increased from 6.6% in 2011 to 8.0% in 2013, while Mexico’s market share stood merely unchanged at 26.2% over the same period.

Faltering production of dairy produce from other major suppliers and favorable exchange rates have also contributed to record export figures this year.

Share of US Dairy, Produce and Egg Exports

By volume, exports are also having a good year, up 11% year-to- date for a total of 49,235 TEUs. Between 2007 and 2012, volume exports have grown at a compound annual growth rate of 5.2%.

PORT OF LOS ANGELES SHIPPED MOST DAIRY PRODUCE AND EGGS YEAR-TO-DATE

Year-to-date through July, Port of Los Angeles shipped 20% of all U.S. dairy produce and eggs, a total of 9,907 TEUs. The Port of Oakland followed closely with a 19% share and a total TEU count of 9,275. Th e Top 5 ports that shipped the most dairy produce and eggs year-to-date are on the West Coast.

Insights-SEPT-2013 (2)

More of Moreno’s trade and economic analysis can be obtained by subscribing to JOC Insights or by following him on Twitter @MarioMoreno_JoC.

New Whitepaper Examines the Opportunities and Challenges for Containerized Ag Exports

November 12, 2013

PIERS, the Standard in Trade Intelligence, and The Journal of Commerce are offering a new whitepaper available for free download that examines the opportunities and challenges faced by U.S. agriculture producers looking to take advantage of containerized exports.

 US Containerized Agriculture Exports

While this year’s corn and wheat harvest are expected to reach record levels, a small but growing number of exporters face the perennial problem of equipment shortages, because their crops are grown in rural areas that aren’t major destinations for import containers that can be used for exports.

The whitepaper titled U.S. Agriculture Exports: Opportunities & Challenges for Containerized Shippers was designed to give agriculture producers, food companies, and those servicing the agricultural supply chain, insight into how companies like Maersk, BNSF, Archer Daniels Midland and Home Depot are looking to help ease these shortages through “import-steering” or “match-back’ programs.

When carriers and cargo interests that control as much freight as those companies do are able to coordinate their supply chain needs, every participant is a winner. “Everyone benefits when waste is taken out of the system,” said Craig Mygatt, Maersk’s senior vice president of inland operations.

Get a better understanding of how these trends affect the global supply chain and download your FREE report today!

Download Your Free Report

U.S. Imports of Brazilian Corn Continue into Late 2013

November 5, 2013

Following one of the worst droughts in U.S. history in 2012, U.S. imports of corn from Brazil can still be seen as late as August and September of this year, while this year’s harvest is slow to fill the gap between supply and demand.

Global Corn Trade

As previously reported by Reuters, rumors of the rare imports of this U.S. staple began surfacing last July as domestic corn prices soared. By late September deals had been confirmed by several large livestock companies calling for a series of bulk shipments from Brazil in subsequent months. Despite initial estimates on how much Brazilian corn would be needed, PIERS data shows bulk shipments of corn to major chicken producers like Pilgrim’s Pride Corp as late as August 30th, and other bulk shipments destined for Panamerican Grain in Puerto Rico arriving in early October. Prior to 2012, bulk U.S. imports of corn were rare, if ever, and usually came from Canada.

In what should be a reminder that global trade is ever-changing and often unpredictable, PIERS data shows that the U.S. has imported nearly 725,000 metric tons of corn from Brazil since the beginning of the 2012 drought through September 30, 2013. And while Brazil stuck out as the primary beneficiary of the U.S. supply shortage, there was also an additional 185,000 metric tons of corn imported from Brazil’s South American neighbor Argentina.

According to Reuters, John Prestage of Prestage Farms stated that prices could be as much as 5% lower to import corn from Brazil than to transport it from the Midwest. He noted his increasing interest in possibly importing other grains beside corn in the future.

So far things are looking up for this year’s harvest. The U.S. remains the world’s largest producer of corn and favorable weather conditions have estimated the U.S. harvest will jump 30% over last year, putting them at record levels, which could give U.S. corn exports a price advantage over global competitors.

To learn more about how you can benefit from PIERS import & export data register to receive a free demo.


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