MADISON — An international demand for dairy products, including bovine genetics, has propelled Wisconsin into a top 10 ranking of states based on the value of agricultural exports for 2014.
Last year proved to be a record-breaker, as Wisconsin exported more than $3.6 billion worth of agricultural products to more than 145 countries, according to a report by officials from the Wisconsin Department of Agriculture, Trade and Consumer Protection’s International Agribusiness Center.
A weak global economy this year, however, resulted in a 10 percent decrease in the value of Wisconsin ag exports for the first three quarters, the DATCP Board was told Dec. 16.
Jen Pino-Gallagher, bureau director of the DATCP’s export center, said dairy is Wisconsin’s No. 1 agricultural export category.
Compared to 10 years ago when Wisconsin agricultural exports were more commodity based, she said, “Today our product mix is much more diverse.”
A global oversupply of dairy combined with a strong U.S. dollar pose export challenges, she said.
“We have a strong dollar, which is making it more difficult for buyers because (U.S.) products are more expensive,” she said.
Agricultural products accounted for 15 percent of the $23 billion in exports from Wisconsin in 2014.
Even though Wisconsin has exported just more than $2.4 billion in ag products through October to 136 countries, it actually improved its U.S. ranking by two positions to No. 10 this year.
Members of the International Agribusiness Center team discussed the role of the center in promoting agricultural products in foreign markets.
In some ways, the export center is considered “a hidden gem,” Pino-Gallagher said.
She said the center continues to emphasize the services it offers companies on the “ins and outs” of exporting their products, she said.
“We help companies promote their own products and we also bring buyers in from other countries,” she said.
Among the services are exporter education, market access and market development and promotion.
Last year the DATCP participated in its largest trade mission ever, when more than three dozen exporters, regulatory officials and journalists went to China for an eight-day trade show.
Participation led to $5 million in export sales for 10 Wisconsin companies, she said.
Next year’s trade missions will include Mexico and the Middle East, where the focus will be on exporting livestock feeds, she said.
The DATCP is one of the exporter partners, she said, because exporters must work closely with regulators who issue export certificates, such as those in dairy food safety.
The trade team works with Wisconsin firms to identify export opportunities by providing technical expertise and market development initiatives.
A recent development with the export team working with the U.S. Department of Agriculture has led to the opening up for the sale of live cattle genetics to the country of Colombia, she said.
Among its services, the team analyzes client feedback, global trends and market and export data.
Based on the value of agricultural exports last year, dairy and dairy derivatives, including cheese, milk, whey, butter and lactose, accounted for $479 million in foreign sales.
Rounding out the top five were miscellaneous foods, such as sauces, yeasts and mustards; beverages such as denatured ethanol and beer; raw fur skins from mink; and cereal grains including corn, wheat and barley.
Canada and Mexico remain the two top destinations for Wisconsin agricultural products, followed by China, Korea and Japan.
Among the states, Wisconsin ranked first in the export of bovine genetics, ginseng roots, prepared and preserved sweet corn, pickles and cranberries.
Wisconsin ranked second in the export of cheese, whey, sausages and mink fur skins.
By: Judy Brown
Source: The Country Today