Page 5 Monday, June 11, 2012 FarmWeek
EXPORTS
USDA raises ag export estimate for fiscal 2012 BY DANIEL GRANT FarmWeek
Ag exports could play a key role this year in determining whether commodity prices remain at profitable levels.
USDA is forecasting that fiscal year 2012 ag exports will total $134.5 billion, which would be the second-highest value on record. The projection is up $3.5 billion from USDA’s
Speed marketing connecting Illinois exporters, buyers BY KAY SHIPMAN FarmWeek
Thirty minutes to learn about an international market and make a pitch for Illinois foods. Then off to meet another buyer. Welcome to the rapid pace of Food Export-Midwest. “It is like speed dating with suppliers on one side (of a table) and buyers on another side,” said Kim Hamilton, an international marketing representative with the Illinois Department of Agriculture (IDOA). Next month, IDOA will sponsor Food Export-Midwest in Chicago where speed marketing will be offered. Fifteen international buyers representing markets around the world have been invited. About 30 suppliers, about half from Illinois, are expected. The event is funded through USDA. Registered suppliers rank the top 10 buyers they most would like to meet, and Hamilton arranges face-to-face meetings. Speed marketing offers some advantages over trade shows and other types of marketing, according to Hamilton. In speed marketing, suppliers “actually get to capture a buyer’s attention for 30 minutes and engage in one-on-one conversations,” she said. This compares to snatches of conversation grabbed on a trade show floor. Speed marketing also is cost effective with registration fees ranging from $100 to $150. “For that amount of money, a company might do research for 10 buyers and learn feedback (about their products),” Hamilton said. Most suppliers have previous export experience, but occasionally a business will use speed marketing to test the export waters because it can do so for a nominal cost. Some suppliers learn that exporting would work for their operations; others find out it’s not for them, she added. Hamilton remembered a woman with no export experience who participated last year and had “a big learning experience.” The woman found an individual who agreed to represent her company in an international market, which was one way to ease into exporting, Hamilton explained. This year about 20 buyers missions will occur around the U.S., and Illinois companies have an opportunity to participate. Given the time limits for speed-marketing meetings, everyone must stay on schedule with five-minute warnings. Unlike some types of speed meetings, Hamilton doesn’t use a whistle to signal time’s up, but makes an announcement over a microphone.
ONE BIG BURGER
Gary Vinsand, a restaurateur from Dakota City, Iowa, grills a mammoth pork burger at the World Pork Expo last week in Des Moines. The monster burger weighed in at a hefty 260 pounds. Vinsand estimated it would take eight to nine hours to fully cook the burger, which he said could feed as many as 700 people. The three-day Expo last week attracted about 20,000 visitors from 38 countries. (Photo by Daniel Grant)
February forecast. “Soybean export demand continues to be hot,” said Darrel Good, University of Illinois Extension economist. “I expect that will continue for at least the next several months because of the small South American harvest and continued demand from China.” USDA projected soy production in the top five producing countries in South America this year will total 4.237 billion bushels, down 779 million bushels from last year. USDA will update its crop production and world ag supply and demand projections Tuesday. The most recent export projections predicted an increase in shipments of oilseeds, wheat, and rice that are expected to more than offset a reduction in course grains. “Corn exports and exports sales are really slowing down,” Good said. Prospects of a big crop and economic woes around the world also could weigh on the price of corn and other commodities.
“The ongoing (financial) problems (in Europe) and disappointing economic news here could put a cloud over the markets this summer,” Good said. Exports to the European Union were projected to decline $1.5 billion. But U.S. ag exports to the top three markets — Canada, China, and Mexico — were projected to increase this year. The forecast for livestock, poultry, and dairy exports was
raised by $400 million. USDA also raised its projection for U.S. ag imports by $1 billion, which would total a record-high $107.5 billion. Higher imports were projected for vegetable oils, oilseed, bulk grains, beef, and veal. The U.S. still is projected to maintain a surplus ($27 billion) in ag trade for 2012. Overall, trade growth is expected to be 3.4 percent this year, down from 6-plus percent last year.