USDA Increases Ag Exports Forecast

The government increased its outlook for 2010 U.S. agricultural exports to $104.5 billion, the second-highest level ever, amid stronger than expected demand from China and other Asian countries.

U.S. agricultural exports were up 14% during the first six months of fiscal 2010, reflecting the USDA’s stepped-up efforts to sell farm products overseas. This year’s projected U.S. ag exports of $104.5 billion, revised higher by 4.5% from a previous estimate in February, are second only to the $115.3 billion exported in 2008, the USDA said.

Exports for fiscal 2010, which ends Sept. 30, would be up 8.2% from $96.6 billion in 2009. The report illustrated the expanding role of China, and the rest of Asia, as a major customer for soybeans, livestock feed, almonds and other U.S. agricultural products. This year, Asia is expected to surpass the Western Hemisphere as the largest region market for U.S. exports, the USDA said.

U.S. ag exports to China are expected to total $14 billion in 2010, up from $11.7 billion projected in February and up from $11.2 billion in 2009, USDA said. China would be the third-biggest single-country market for U.S. farm exports behind Canada and Mexico. Last year, China ranked fourth.

For the full Agricultural Trade report go to: fas.usda.gov/cmp/outlook/2010/May-10/May2010_fullreport.pdf.