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Sept. 15, 2020 Presentation from the Washington Department of Agriculture

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Sept. 15, 2020 Presentation from the Washington Department of Agriculture The State of Washington Food & Ag Exports Washington Public Ports Association September 15, 2020 Rianne Perry International Marketing Manager Washington Food & Ag Exports • Pre-COVID Overview: - Top Exports & Markets - Tariff Impacts • US-China Phase I Agreement • COVID-19 Impacts • WSDA Int’l Marketing Program Data Sources: World Trade Atlas/WISER Trade/WA Grain Commission Washington Food & Ag Exports • 2019 WA Food & Ag Exports = $7B • 2019 Total Food & Ag through WA = $15.4B • ~ 30% of all Washington-grown food & ag products are exported • 90% wheat • 60% potatoes • 30% apples • 25% cherries Top WA Food & Ag Exports 2019 Fish & Seafood: $1.1B Top markets: Canada, Japan, China Frozen French Fries: $883M Top markets: Japan, South Korea, Philippines Apples: $732M Image(s) Top markets: Canada, Mexico, Taiwan Wheat: $587M Top markets: Philippines, Japan, South Korea Hay: $518M Top markets: Japan, South Korea, China Top Trading Partners 2019 1) Canada ($1.2B): Seafood, Apples, Cherries 2) Japan ($1B): Wheat, French Fries, Hay 3) China ($462M): Seafood, Hay, French Fries 4) South Korea ($448M): French Fries, Hay, Wheat 5) Mexico ($380M): Apples, Dairy, Pears Tariff Impacts Multiple Retaliatory Tariffs, primarily those imposed by China and India, resulted in trade disruptions for many of Washington’s food and agriculture exporters. Multiple Washington commodities and food products were/remain the targets of retaliatory tariffs beginning in 2018. - Examples: cherries, apples, wine, wheat, hay, dairy, hops - Many targeted multiple times Tariff Impacts Retaliatory Tariffs - Cherries • China was #1 market for WA cherries (2017: $100M) • Original tariff: 10%. • April, 2018: additional 15% • July, 2018: additional 25% • Sept, 2019: additional 5% 2018: exports to China = $67M 2019: exports to China = $60M Tariff Impacts Some China exports have been redirected Exporters had to quickly pivot and expand into other markets. Cherries 2018: Exports to Vietnam increased 76% ($9M) 2019: Exports to Vietnam increased 130% ($21M). On track to exceed in 2020. Trending as #5 market. US-China Phase I Agreement US-China (Phase I) China will purchase $40B ag annually (?) Retaliatory tariffs not addressed directly DOES address market access issues: • Chipping potatoes • Fresh blueberries • Timothy hay, alfalfa pellets and cubes • Barley • Frozen fruits & vegetables “New Normal” – Pre-COVID Overall, WA food and agriculture exports were stabilizing. • Many 2019 exports at or above 2017 levels. • Exports to China and India decreasing. - Significant market investment has been lost in both markets. • Exports to other markets (especially those in Southeast Asia) increasing. Impacts of COVID-19 Ag exporters affected early in 2020 • January – March: China import challenges • January – July: Significant decrease in foodservice demand • March – June: Significant decrease in U.S. imports • June/July: Lingering effects, but some rebounding Impacts of COVID-19 Year-to-date (through July) Washington food and agriculture exports: ~1% increase over 2019 • Impact depends on product, market and channel • Live Geoduck: - 38% • Live Dungeness Crab: - 40% • French Fries: - 13% • Milk Powder: +40% • Wheat: +20% • Chickpeas: +42% Impacts of COVID-19 Markets Trends: Year-to-date (through July) • India: -43% • Mexico: -25% • Hong Kong: -15% • Thailand: +49% • China: +22% • Vietnam: +18% “New Normal” – Post-COVID • Foodservice will continue to lag. • Retail and online sales will continue to grow. • Exports to Southeast Asia will continue to increase and remain important for diversification. China? WSDA International Marketing Program The WSDA International Marketing Program supports the health and viability of Washington food and agricultural businesses by helping them expand exports around the world. ❖ All Food, Beverage & Agriculture Businesses ❖ Small-to-Mid Sized Businesses Export Provide resources to help Washington companies Development become export-ready. Export Match buyers & sellers, conduct trade activities Assistance and provide technical assistance to facilitate trade. Market Access Government-to-Government/Trade Barrier Mitigation. 2020 Planned Trade Activities • 7 Inbound Missions – Central America, Mexico, South Korea, Australia, Southeast Asia, Taiwan • 7 Outbound Missions – South Korea, Mexico, China, Southeast Asia, Taiwan, Columbia/Costa Rica, United Kingdom • Julie• 6 Tradeshows Johnson – Japan, Chile, Vietnam, Singapore, Canada, Indonesia Many converted to virtual. Will continue virtual offerings through 1st Qtr. 2021. In-Market Representation Assist Washington food & agricultural companies with: ❖ Introductions to importers & buyers ❖ Import requirements & guidance on shipping, labeling, packaging, etc. ❖ In-market appointments and assistance ❖ Annual company consultations in WA Awarding Contracts in China, Japan, Mexico, Southeast Asia, South Korea - Project-based: Canada, South America, the Middle East, Taiwan Thank You Questions? Rianne Perry WA State Dept. of Ag International Marketing (360) 902-1841 [email protected] www.agr.wa.gov/international.
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