VA AGRICULTURE & FORESTRY: BUILDING DOMESTIC CAPACITY, EXPORTING TO THE WORLD

Transcription

1 VA AGRICULTURE & FORESTRY: BUILDING DOMESTIC CAPACITY, EXPORTING TO THE WORLD VIRGINIA ECONOMIC DEVELOPERS ASSOCIATION 2014 GOVERNOR S CONFERENCE ON ECONOMIC DEVELOPMENT VIRGINIA SECRETARY OF AGRICULTURE & FORESTRY TODD P. HAYMORE OCTOBER 9, 2014

2 DISCUSSION OVERVIEW Economic Power of Agriculture & Forestry What We Did Successes Achieved Where We Go From Here

3 STATEWIDE IMPACT OF AG & FORESTRY Two of Commonwealth s Largest Industries Economic Impact: $70b Revenue Annually >$52b from Agriculture; >$17b from Forestry Provide >400k Jobs Via Production, Value- Added & Ripple Effect Industries More Than 10% of all VA Jobs; Every Industry Job Supports 1.5 Jobs Elsewhere

4 MCDONNELL 2010 DECISION Full Integration of Agriculture, Forestry Industries into VA s Economic Development, Jobs Creation Agenda First Governor in Modern VA History to Create Strategic Plan for State s Largest Industries VA Ranked Best for Business Already; Make State the Most Pro-Ag & Forestry in U.S.

5 SECRETARIAT FOCUS, STRATEGIES Act as Chief Marketing & Development Officer Push Best for Business Designations Utilize State Government Partners: No Silos Partner w/private Sector Here, Abroad Engage U.S., Foreign Governments Capitalize on Diverse Market, Product Portfolios Increase Marketing Staff, Global Presence

6 SECRETARIAT TOP PRIORITIES Domestic Development Expand Existing Operations Recruit New Businesses to Virginia Build Domestic Capacity for New Exports International Marketing & Exports Expand Virginia s Global Footprint Increase Exports to Key Growth Markets New Exports Build Domestic Capacity

7 DOMESTIC DEVELOPMENT: NEW CAPACITY Governor s Agriculture & Forest Industries Development Fund (AFID) Why? Ag, Forestry Were Falling Through Cracks $2.5m Incentive Fund for Econ. Development, Planning Use for Recruitment, Expansion of Businesses Focus on Processing and Value-Added Projects 30% VA Grown Purchase Mandate Key for Ag Growth No Export Directive, But Connections Are There

8 DOMESTIC DEVELOPMENT: NEW CAPACITY AFID Development Grants Launched in Late 12 Fifteen Projects So Far: 12 Agricultural, 3 Forestry Private Investment: Over $139 million Jobs Created: 1247, Mostly in Rural Areas Average Use of Virginia Grown Products: 70% Virginia/AFID Investment: $1.45 million

9 AFID FACILITY GRANTS

10 DOMESTIC DEVELOPMENT: NEW CAPACITY AFID Planning Grants Launched in Spring Projects Covering 45 Localities So Far AFID Investment: Approximately $404,000 Up to $250k annually awarded on a rolling basis $20k for Single Locality, $35k for Regional Project Assist Planning, Study, Local Initiative to Grow, Support Ag, Forestry-based Businesses Implementation by Board, Committee, Working Group

11 DOMESTIC DEVELOPMENT: NEW CAPACITY New Specialty Crop Research Funds Opportunities in Non-traditional Production: Sesame, Chickpeas, Barley, Hops New Purchase of Development Rights, Agricultural Stewardship Program Funds Preserving Farmlands, Protecting Natural Resources New Boards of Director Memberships VA Economic Development Partnership, VA Rural Center

12 IMPORTANCE OF AG, FORESTRY EXPORTS Globalized Economy: Jobs, Opportunities Here USDA: Exports Now Generate Nearly 30% of Annual Farm, Forest Cash Receipts Every $1.00 From Exports Returns $1.40 To In- State Support Activities: Processing, Packaging, Financing, Shipping, etc. Export Related Jobs Pay 15% Than Other Jobs >90% of World s Customers Outside of U.S.

13 VALUE OF AG & FORESTRY EXPORTS Record $2.85 Billion Exports in 2013 More Than 8% Increase Over 2012 Level Challenges: Falling Commodity Prices, Political Instability Strategic Focus Region, Other Highlights Lumber, Logs, Soy, Wine, Seafood to China, Hong Kong Wood Pellets, Wine, Specialty Foods, Seafood, Leaf Tobacco to U.K., European Union, Switzerland F.G. Soybeans, Specialty Foods to Japan, S. Korea Lumber, Peanuts, Grains, Seafood to Vietnam Lumber, Soybean Oil, Apples, Specialty Foods to India

14 VIRGINIA S TOP A/F EXPORT MARKETS China, $580 million Canada, $259m Switzerland, $190m Russia, $117m Indonesia, $110m Vietnam, $83m Saudi Arabia, $80m Egypt, $79m Venezuela, $76m Taiwan, $75m United Kingdom, $69m Poland, $56m Turkey, $48m Mexico, $45m Morocco, $45m Ireland, $44m Italy, $41m Netherlands, $40m Malaysia, $39m Cuba, $38m

15 VIRGINIA S TOP A/F EXPORTS Soybeans & Meal, $986m Leaf Tobacco, $272m Wood Products (logs, lumber, etc.), $270m Grains (wheat, corn, barley, etc.), $198m Poultry, $186m Processed Food & Beverages, $178m Soybean Oil, $115m Animal Feed, $91m Wood Pellets, $73m Pork, $72m Cotton, $44m Seafood, $39m Raw Peanuts, $28m Animal Fats & Oils, $27m

16 COMMITMENTS TO EXPORT GROWTH New State Funds for Trade Reps in Key Markets More Than $3m in International Marketing Since 10 New Marketing Offices in China, India, UK, Russia, Mexico, Costa Rica, Canada All Supplementing Existing Hong Kong Office Gubernatorial/Secretariat International Missions VDACS Division of Marketing & Development Trade Missions/Reverse Trade Missions Fill Gaps Where Governor, Secretary Can t Visit

17 COMMITMENTS TO EXPORT GROWTH Advocating Open & Fair Trade Policies Colombia, Panama, S. Korea FTAs T-TIP, TPP Negotiations Battling Artificial International Trade Barriers China: Hard/Soft Logs, Poultry India: Lumber, Leaf Tobacco, GMO Products EU: Wood Pellets Keep As Approved Renewable Fuel for Heat, Energy Generation Creating Governor s Conference on Ag Trade

18 NEW EXPORT GROWTHS, SUCCESSES More Than $750m in New Export Deals Since VA Ag/Forestry Export Initiative Implemented 27% Increase in Ag, Forestry Exports Value From $2.24b in 2010 to $2.85b in 2013 Growth in Strategic Focus Regions China 210% Sales Increase in 4 Years Latin America 60% Increase Overall in 4 Years European Union, Switzerland 30% Rise India 61% Growth

19 SECRETARIAT EMPHASIS IN 2014 Gov. McAuliffe SOTC Address: Make VA the East Coast Capital for Ag, Forestry Exports Facilitate New Export Opportunities Move from Building to Utilizing Global Network; Add to Existing Infrastructure? Trade Missions, Reverse Trade Missions Examine Targeted Growth Regions, Commodities Promote Domestic Development = New Capacity Increase Port Utilization, Development Efforts

20 2014 TRADE MISSIONS Gubernatorial Missions Europe United Kingdom Southeast Asia China (2), Japan, S. Korea, HK Secretariat, VDACS Lead Missions China, Japan, Vietnam, Hong Kong, Malaysia, India, United Kingdom, France, Spain, Belgium, Canada, Cuba, Costa Rica, Others? Reverse Trade Missions Delegations from China, Japan, Canada, Europe, Others?

21 FUTURE TARGETED GROWTH REGIONS Southeast Asia Vietnam, Indonesia, Malaysia, Philippines, Thailand Fast Growing, Reasonably Stable Markets >$250m in VA Ag, Forestry Exports in 2013 Between 10-40% Growth vs Figures Lumber, Logs, Peanuts, Containerized Soy, Other Feed Products Fueling Growth All Countries Are Up First 5 Months 2014 vs. Same Period 2013

22 FUTURE TARGETED GROWTH REGIONS Mediterranean Northern Africa Turkey, Morocco, Egypt, Tunisia, Saudi Arabia Large, Lucrative, Volatile, Politically Sensitive Markets >$270m in VA Ag Exports in 2013 Soy Oil, Corn, Other Grains Fueling Growth All Countries Are Up First 5 Months in 2014 vs. Same Period in 2013

23 BUILDING DOMESTIC CAPACITY Continue Growing AFID Facilities, Planning Grant Program Increased Exports: Building Domestic Capacity Other Emerging Opportunities: Craft Beer Industrial Hemp Agri-tourism Competitive Forestry Industry Policies

24 PORT UTILIZATION, DEVELOPMENT Partner w/transportation Secretary, VPA to Promote State s Top Asset Here, Abroad Support Existing Agribusiness Growth Efforts Recruit New A/F Businesses, Related Industries Turn Non, Under-Utilized Port Terminals, Facilities into Working Assets New Investments in Working Assets Commonwealth of Virginia Agribusinesses, Railroads, Related Support Companies

25 CONCLUSION Infrastructure for Continued Growth, Successes In Place for Virginia Agriculture, Forestry Sectors, Exports Top Quality Producers, Products, A/F Businesses Ag, Forestry Industries Integrated Into Overall Economic Development, Jobs Creation Agenda Governor Fully Committed to Building on Existing Network, Successes of Previous Administration

26 CONCLUSION Infrastructure for Continued Growth, Successes In Place for Virginia Agriculture, Forestry, Sectors, Exports Global Trade Office Network; Add New Regions? World-Class Port System; Potentially Expanding? Governor s AFID Fund Building Capacity Commitment to New Production, Sustainability Virginia Best for Business Rankings, Reputation

27 CONCLUSION Thanks! TODD P. HAYMORE SECRETARY OF AGRICULTURE & FORESTRY (804)