International Ag issues Trends in the Local Food Market Presentation For The NSAC Far West Chapter Annual Meeting May 23, 2013
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1 International Ag issues Trends in the Local Food Market Presentation For The NSAC Far West Chapter Annual Meeting May 23, 2013 William Matthews University of California Agricultural Issues Center
2 UC Agricultural Issues Center AIC Mission: provide broadly-based and objective information on agricultural issues and their significance for California s ag economy Priorities: International trade, globalization, ag policy, ag. productivity and technology, ag. labor, ag. land issues, commodity markets and agribusiness UC based center for 30 years
3 Today s Discussion Trends in the local food movement Role of California agriculture in global food supply
4
5 Number of Articles Number of Articles that Discuss Local Food Movement in Text, Source: NewsBank
6
7 900 Number of Farmers Markets Listed by State, California New York Massachusetts Michigan Wisconsin Illinois Ohio Pennsylvania Iowa Virginia North Carolina Florida Minnesota Colorado Oregon Texas Indiana Kentucky Missouri Connecticut Maryland Alabama Washington New Jersey South Carolina Georgia Kansas New Hampshire Vermont Tennessee Hawaii Maine Nebraska Arizona West Virginia Arkansas Mississippi Oklahoma New Mexico Idaho Montana North Dakota Louisiana Rhode Island Wyoming Nevada South Dakota Utah District of Delaware Alaska Source: USDA AMS
8 Number of Farmers Markets Listed by State for 2012 Number of Farmers Markets Arizona 82 California 827 Hawaii 88 Nevada 38 Utah 37 Total Member States 1,072 Total USA 7,860 Source: USDA AMS
9 Direct-to-Consumer Food Marketing* by Region, Source: USDA AMS * Direct marketing is defined as agricultural products sold directly to individuals for human consumption in the U.S. Census of Agriculture, 2007.
10 Top 10 States, Direct-to-Consumer Food Marketing as Share of Total Agricultural Sales, 2007 Source: USDA AMS
11 Agricultural Economy of Top 10 Direct-to- Consumer Marketing States, 2012 Total Cash Receipts = $9.79 billion Total US Cash Receipts = $390.8 billion Share of US Agriculture Production Value = 2.5%
12 Direct-to-Consumer Food Marketing Sales For 2007 Source: USDA AMS
13 Direct-to-Consumer Market Value as Share of California Agriculture 2007 Value of Direct-To- Consumer Sales in California 2007 Value of California Agriculture Cash Receipts $163 million $37 billion Share Value of Direct-To- Consumer Sales in California* $292 million 2012 Value of California Agriculture Cash Receipts $44 billion Share.006 * Assumes growth rate for direct-to-market sales is equal to growth rate in farmers markets in US.
14 California Agriculture In 2012 California Agriculture Production = $44.1 billion. California agriculture =11% of total US value in agriculture production. Next closest state is Iowa at about $32 billion or 8.2% of US Ag. production value. Source: USDA-Economic Research Service
15 Total Value in $billion $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 Annual Value of California Agricultural Production
16 Top Agricultural Producing States In U.S. 16% Share of US total Ag Value 14% 12% 10% 8% 6% 4% California Iowa Texas Nebraska Source: USDA-Economic Research Service
17
18 California s Agricultural Advantage Mild Climate Fertile Soils Adequate Precipitation (Rain/Snow) Source: State of California
19 Commodities Produced in California Source: California Department of Food and Agriculture
20 Crops for which California is the Sole Producer in the US Almonds Pistachios Walnuts Figs Kiwi Nectarines Olives Clingstone Peaches Plums Prunes Raisins Dates Artichokes Source: USDA-Economic Research Service
21 Other Crops for Which CA is a Major Producer (70-98%) Apricots Grapes Lemons Strawberries Cotton (Pima) Lettuce Proc. Tomatoes Spinach Garlic Celery Cauliflower Broccoli Avocadoes
22 Share of 2011 California Agricultural Value by Commodity Group Field Crops 17% Other Crops 2% Fruit and nuts 32% Greenhouse Nursery 8% Source: USDA-ERS Meat and Poultry 10% Dairy 16% Vegetable 15%
23 Top 5 Commodities by Value for 2011 Commodities 2011 Farm Value (in $billions) Dairy Products $7.6 Almonds $3.8 Grapes $3.8 Beef $2.5 Strawberries $1.9
24 Value of Production in $billion Annual Value of Top 5 Commodities 1992 Dairy Almonds Grapes Beef Strawberries
25
26 Export Values in $billion $16 $14 $12 $10 $8 $6 $4 $2 $0 California Export Values, Top-10 Commodities Principal Commodities All Agricultural Exports
27 Top-5 California Exports, 2011 Rank Commodity ($mill) % Exported 1 Almonds 2, Dairy and products 1, Wine 1, Walnuts 1, Rice Total Agriculture Exports 16, Source: Agricultural Issues Center
28 2011 California Exports by Category Wine 8% Flowers 1% Animal Products 12% Vegetables 7% Field Crops 17% Tree Nuts 32% Fruits 23%
29 Top Ten Export Destinations for 2011 California Exports Rest of World 32% Canada 18% Taiwan 2% Turkey 2% United Arab Emirates 2% South Korea 5% India 2% Mexico 5% Japan 8% European Union-27* 14% China / Hong Kong 10%
30 California Agriculture Exports to Asia/Pacific Region In 2011 California exports went to 39 different Asia/Pacific countries. Total value of exports to region in 2011 was $5.74 billion, or 34% of total exports.
31 Country Asia/Pacific Region Exports by Destination Country for Value ($ million) Share of Total China/Hong Kong 1,722 30% Japan 1,415 25% Korea % India 360 6% Taiwan 249 4% Australia 248 4% Vietnam 197 3% Indonesia 153 3% Malaysia 148 3% Philippines 132 2% Rest of Region 340 6% Total for Region 5, %
32 Commodity Asia/Pacific Region Exports by Commodity for Value ($ million) Share of Total Almonds 1,067 19% Dairy % Oranges 482 8% Rice 473 8% Walnuts 400 7% Table Grapes 366 6% Wine 363 6% Beef 349 6% Pistachios 339 6% Cotton 305 5% Other Exports 1,000 17% Total Exports 5, %
33 2011 California Exports to Asia/Pacific Region by Category Vegetables 3% Tree Nuts 31% Wine 6% Animal Products 17% Field Crops and Flowers 18% Fruits 25%
34 US-Asia/Pacific Free Trade Agreements US-Australia: Entered into force on January 1, U.S. goods exports were $18.9 billion in 2009, up 33 percent from 2004 (US Trade Representative). US-Korea: Entered into force on March 15, Trans Pacific Partnership
35 Australia as Export Destination for California Agriculture Australia is consistently a top-15 destination country for California agriculture products. In 2011 Australia purchased $248 million in agricultural exports from California.
36 Average Value of California Exports $200 to Australia Value in $millions $150 $100 $ Avg Avg $0 Tree Nuts Table Grapes Citrus Grand Total
37 Korea as Export Destination for California Agriculture Korea was the #6 destination country for California agriculture products in Korea purchased $751 million in agriculture products from California in 2011.
38 Base tariffs in Korea for selected products
39 Access improvement by general market access category
40 Comparison of US Exports to Korea of Commodities that went to 0% Tariff at Start of FTA Commodities Percent Change $1,000 Beef- Hides 286, , % Almonds 84, , % Cherries 1,842 76, % Tomatoes, Processed 12,761 16, % Wine 10,511 15, % Raisins 10,006 12, % Total 406, , %
41 Trans Pacific Partnership Current Trans-Pacific Partnership Agreement (TPSEP) is a free trade agreement among Brunei, Chile, New Zealand, and Singapore (begun in 2005). Since 2010, negotiations to significantly expand the TPP to include Australia, Canada, Malaysia, Mexico, Peru, the United States, Vietnam and Japan have taken place. Focus on Japan
42 Japan as Export Destination for California Agriculture Total California Ag Exports to Japan in 2011 Valued $1.45 billion. Japan was the third highest destination country for California agricultural exports in 2011.
43 2011 California Agricultural Exports to Japan Commodity 2011 Value ($ million) Share of Total Rice % Almonds % Beef 111 8% Hay 106 7% Wine 100 7% Oranges 93 7% Dairy 86 6% Walnuts 78 6% Raisins 49 3% Lemons 47 3% Other Exports % Total Exports 1, %
44 Conclusions The eat local movement is a growing trend but remains a small part of overall agricultural production and value. California s strengths are producing and processing large numbers of different commodities efficiently and competing in the global market. This is will continue.
45 Thank You
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