United States

Department

of Agriculture

www.ers.usda.gov

Electronic Outlook Report from the Economic Research Service

FAU-85-01

February 2004

Processed Agricultural Exports

Led Gains in U.S. Agricultural

Exports Between 1976 and 2002

Abstract

U.S. agricultural exports rose to $53 billion in calendar year 2002, an increase of $30

billion in nominal dollars since 1976. In real terms, the average rate of export growth

was 1.7 percent per year. U.S. export gains occurred mainly in high-value products

(HVPs); bulk exports rose slightly, but suffered a significant loss of market share. Of the

total HVP exports, processed HVPs (meats and grain products) accounted for the most

growth; semiprocessed HVPs (feeds, hides, and oilseed products) were relatively stable;

and raw HVPs (fruits, vegetables, and live animals) expanded slightly. Asia and the

Americas surpassed Europe as the largest U.S. agricultural markets.

Keywords: U.S. exports, value, by commodity group, by country, FATUS, calendar years.

Carol Whitton

U.S. agricultural exports, bulk and high-value products

Source: Economic Research Service, USDA, and Census Bureau, U.S. Department of Commerce.

Billion dollars

0

5

10

15

20

25

30

35

40

1976 79 82 85 91 97 2000 88 94

Total bulk

commodities

Total HVPs

Processed

HVPs Semiprocessed HVPs

Raw HVPs
Between calendar years 1976 and 2002, global demand

for U.S. agricultural exports increased substantially.

U.S. exports in 1976 equaled $23 billion, but rose to

$53 billion by 2002, a gain of $30 billion or an average

of 3.3 percent per year in nominal terms. Using an

index of U.S. export unit values as a deflator, the average annual rate of growth in U.S. agricultural exports

in real terms over the 26 years equaled 1.7 percent.

According to United Nations trade data, using USDA’s

definition of agriculture, world agricultural exports

since 1976 also rose substantially. Because the United

States is one of the largest exporters of agricultural

products, expansion in global trade benefited U.S.

exports, particularly earlier in this period. During the

last decade, however, competitors’ exports also

increased sharply, particularly those of emerging bulk

commodity competitors such as Brazil, Argentina,

China, and the Black Sea region.

Most of the growth in U.S. agricultural exports during

the 26 years from 1976 to 2002 occurred between

1976 and 1996, for a gain of $37 billion. However, in

the 5 years from 1997 to 2002 the global economy

experienced a period of sluggishness and, in some

countries, recession. This period began in mid-1997

with the financial crises in Asia and Russia and then

later in Latin America. UN trade data shows the value

of global agricultural trade declining annually from

1997 through 2002. This global slowdown mirrors a

drop in economic growth in the United States. U.S.

agricultural exports, however, declined only in the

years 1997-99; some growth in U.S. exports resumed

in 2000 and 2002, but at a much slower rate.

Although average annual U.S. agricultural export

growth was relatively strong from 1976 to 2002, from

1989 to 2002 it slowed to 2.2 percent annually in nominal terms (1.4 percent in real terms). And since 1997,

U.S. agricultural exports have actually declined an

average of 0.6 percent annually in nominal terms,

despite gains in 2000 and 2002. In real terms, however, the last 5 years of U.S. agricultural exports show

improved average growth of 1.9 percent per year

because export unit values fell.

Several factors contributed to the general gains in U.S.

agricultural exports. U.S. farm policy played a role,

becoming increasingly flexible over time and allowing

production to adjust to demand. The value of the U.S.

dollar also contributed; dollar depreciation in the

1970s and between 1986 and 1996 supported U.S.

sales abroad.

Beginning in the 1970s, reform of the Common

Agricultural Policy (CAP) played a crucial role in

trade with the European Union (EU). In the mid1970s, the EU introduced grain price supports; it followed with oilseed price supports later in the decade.

Price and income supports led to EU output growth,

while food consumption remained relatively flat. By

1985, the EU had become a net coarse grains exporter

in competition with the United States. Consequently,

much of the need for U.S. bulk grain exports to the EU

was eliminated, and EU imports of U.S. bulk grains

declined sharply during most of the 26-year period. As

a result, the composition of U.S. agricultural exports to

the EU shifted toward higher valued products.

Also contributing to trade growth, particularly in the

1990s, was trade liberalization. Regional and bilateral

trade agreements were very important for expansion of

U.S. HVP exports to Japan, Canada, and Mexico.

Barriers to U.S. trade were reduced in Japan’s meat

and fruit markets, allowing for significant trade expansion. In addition, the North American Free Trade

Agreement (NAFTA) boosted U.S. exports to Canada

and Mexico, as well as raising U.S. imports from these

countries.

In the most recent 5 years, however, U.S. agricultural

exports were constrained by several developments.

Slow growth in global demand due to slow economic

expansion was a factor, but not the only one. Price

changes were always an important aspect of declines

in U.S. agricultural exports. For example, depressed

global prices in 1986 reduced overall export value

sharply. More recently, the value of the U.S. dollar has

been high relative to other currencies, especially in

countries whose currencies depreciated during the economic slowdown and financial crises of 1997-99. This

made the dollar less competitive relative to competing

exporters’ currencies. It was more expensive for other

countries to import from the United States, and U.S.

exports declined.

2 Economic Research Service, USDA

Strong Growth in U.S. Exports From 1976-96; 

Slower Growth Since 1997
Further, in the 1990s many former Communist countries became market oriented. Prior to economic

reforms, these countries had been responsible for

much of the demand for U.S. bulk commodity imports,

particularly in years of poor weather. But in the 1990s,

reforms led to economic recession in the Newly

Independent States (NIS) and Eastern Europe and an

initial sharp drop in the demand for foreign imports.

This contributed to the continued contraction in U.S.

bulk commodity exports to Europe during the 1990s.

U.S. bulk exports, such as wheat and corn, also have

been adversely affected by the emergence of other

countries as major export competitors, especially the

former Soviet Union and Eastern European countries

in the Black Sea region, but also Argentina, Brazil, and

China. Prior to the Communist era, Russia, the

Ukraine, Kazakhstan, and Eastern European countries

in the Black Sea region had been large competitors in

export of wheat, corn, oilseeds such as sunflowers and,

further north, rapeseed. During the past 5 years, these

economies overcame their initial recessions after the

fall of Communism, returned to economic growth, and

again began exporting these products in competition

with the United States.

Argentina, Brazil, and China have also increased the

export of bulk commodities in competition with U.S.

exports. Argentina’s and Brazil’s export growth was

largely due to financial crises and currency depreciation, making their products more competitive on world

markets than U.S. exports. China’s export growth

reflected gradual liberalization of some trade policies,

as well as export of its large grain stocks, in the years

just before it joined the WTO in December 2001.

Recently, biotechnical modifications also have impacted U.S. exports of some commodities. For example,

the U.S. market for corn in the EU has all but disappeared because the EU will not take major varieties of

genetically modified U.S. corn. However, in other

places, with quick adjustments by U.S. exporters to

separate food-use corn from other corn, exports that

were initially lost already have been mostly restored.

The overall impact of biotech on U.S. agricultural

exports thus has been small, affecting U.S. exports in

only a few recent years.

Economic Research Service, USDA 3
As global demand shifted, both the country and the

commodity composition of U.S. agricultural exports

also evolved. The United States, responding to rising

demand for higher valued goods, expanded exports of

HVPs substantially. The share of HVPs in U.S. exports

rose from 30 to 64 percent during the 26-year period.

In 1976 the 10 largest U.S. export commodities, in

terms of value, were corn, wheat, soybeans, cotton,

soybean meal, tobacco, rice, sorghum, bovine hides,

and tallow. Except for soybean meal, bovine hides, and

tallow, these are all major bulk commodities. Bulk

commodity trade led U.S. agricultural exports in 1976.

And at that time, the primary agricultural market for

the United States was Europe.

Since 1976, however, the United States has turned

increasingly to the Americas and Asia for export markets. Asia and the Americas led all regions in expansion of U.S. agricultural imports during the 26-year

period. In addition, HVP exports rose much more rapidly than bulk exports. In particular, exports of meats

and processed products led U.S. trade growth.

The value of U.S. exports of HVP saw substantial

gains over the 26 years from 1976 to 2002. Processed

HVPs rose dramatically, while raw HVPs also gained.

The bulk commodity share of total agricultural exports

contracted sharply, even though bulk export value

overall grew by nearly 1 percent per year.

Bulk commodities include wheat, rice, coarse grains,

oilseeds, cotton, and tobacco. Over the past 26 years,

bulk commodity exports fell from 70 percent of total

U.S. agricultural exports in 1976 to 56 percent in

1989, and to just 37 percent in 2002. In 1976, seven of

the eight largest U.S. exports by value were bulk commodities—corn, wheat, soybeans, cotton, tobacco,

rice, and sorghum. But by 1989 the value of rice,

sorghum, and tobacco exports had declined, and

although these commodities were still in the top 15

exports, they ranked lower than before in value. By

2002, only 4 bulk commodities—soybeans, corn,

wheat, and cotton—remained in the top 15 largest U.S.

agricultural exports in terms of value, and of those,

only soybeans and cotton had shown enough growth

over the 26-year period to make the list of the fastest

growing commodities.

4 Economic Research Service, USDA

High-Value Product Export Growth Strong; 

Bulk Commodity Growth Weak

U.S. bulk export value by region by calendar

year

Source: Economic Research Service, USDA, and 

Census Bureau, U.S. Department of Commerce.

Billion dollars

1976 79 82 85 88 91 94 97 2000

0

2

4

6

8

10

12

14

16

Americas bulk

Asia bulk

Europe & NIS bulk

Mideast, Africa, & Oceania bulk

U.S. HVP export value by region by calendar

year

Source: Economic Research Service, USDA, and 

Census Bureau, U.S. Department of Commerce.

Billion dollars

1976 79 82 85 88 91 94 97 2000

0

2

4

6

8

10

12

14

16

Americas HVPs

Asia HVPs

Europe & NIS HVPs

Mideast, Africa, & Oceania HVPs
The value of total bulk commodity exports over the 26

years still rose slightly, though less than 1 percent, and

it is responsible for hardly any of the growth in U.S.

agricultural export value since 1976. In addition, all

the growth in bulk exports occurred in the first half of

the 26-year period. Bulk commodity trade declined

after 1989, slipping by an average of 1.2 percent annually through 2002.

This means HVP exports were rising much more rapidly over the 26 years, an average of 6.3 percent annually. HVP exports accounted for $27.1 of the $30 billion gain in total U.S. agricultural exports over the

period. And, HVP trade expanded in both halves of the

period, with greater growth in value occurring between

1989 and 2002 even though the percentage rate of

growth slowed.

U.S. exports of HVPs exceeded those of bulk commodities for the first time in 1991 and since then have

continued to rise. Except in 2002, HVP exports contracted slightly. HVPs now account for 63 percent of

all U.S. agricultural exports. High-value products

include meats, dairy products, hides and skins, feeds

and fodders, vegetable oils and meals, fruits, vegetables, nuts, and all products processed from raw agricultural products except textiles, hard liquors, and tobacco

products. Textiles, hard liquors, and tobacco products

are excluded from the U.S. Department of Agriculture’s

definition of agricultural trade commodities.

The slower rate of growth for both bulk and high-value

products in the second half of the 26-year period is

primarily a reflection of the financial crises of 1997 to

1999, the global economic slowdown, and the higher

value of the U.S. dollar in the last few years. Trade is

only now beginning to recover from these setbacks.

Economic Research Service, USDA 5

Average annual growth in U.S. agricultural exports, calendar years 1976-2002

Commodity group 1976 to 1989 1989 to 2002

$ Billion Percent $ Billion Percent

Bulk commodities 6.333 2.6 -3.343 -1.2

HVProducts 10.93 7.7 16.286 5.1

Sources: Economic Research Service, USDA and Census Bureau, U.S. Department of Commerce.
High-value products can be divided into three subgroups—raw, semiprocessed, and processed HVPs.

Raw HVPs, the smallest but second-fastest-growing

group, include live animals, fresh fruits and vegetables, nuts, and nursery and greenhouse products. U.S.

exports of these products grew 6.7 percent over the 26

years, from $1.3 billion to $6.8 billion.

Semiprocessed HVPs include fats, hides, feeds, wool

and other fibers, flour, vegetable oils, meals, and sugar.

These products are primarily used to produce other

more processed products. They showed the least

export growth—3.7 percent from $3.4 billion in 1976

to $8.7 billion in 2002—but still exceeded raw HVP

exports in total value.

Processed HVPs include meats, dairy items, packaged

foods such as pasta, cakes, and biscuits, dried and

canned fruits and vegetables, and beverages such as

wine, juice, soda, milk, coffee, and cocoa. These HVP

exports grew the most over the 26 years, rising by $16

billion, from $2.3 billion in 1976 to $18.5 billion in

2002. In particular, Asia and the Americas sharply

expanded purchases of U.S. processed HVPs in the

1990s. 

In 2002, the processed HVP group alone accounted for

35 percent of total U.S. agricultural exports, virtually

equaling the bulk commodity share. This product

group has approximately equaled, or surpassed, bulk

commodity exports annually since 1999 and is now the

largest U.S. agricultural export group in most years.

Given the continued expansion of processed HVP

exports, processed HVPs are likely to continue surpassing bulk commodity exports in value in the future.

6 Economic Research Service, USDA

Processed HVPs Account for Most of Total HVP Growth 

and Equal the Bulk Export Share of Total Exports in 2002

The changing pattern of U.S. agricultural export

value, by commodity group in calendar years

Source: Economic Research Service, USDA, and 

Census Bureau, U.S. Department of Commerce.

Billion dollars

0

10

20

30

40

50

60

70

Processed HVPs

Semiprocessed

HVPs

Raw HVPs

Total bulk

commodities

1976 79 82 85 91 97 2000 88 94
As the commodity composition of U.S. agricultural

exports changed, so did the country composition.

Europe (including Eastern Europe and the former

Soviet Union) was the largest U.S. agricultural export

destination in 1976, but U.S. exports to Europe have

since declined. Europe accounted for $10.6 billion in

U.S. agricultural exports in 1976; by 2002, exports to

Europe had dropped to $7.7 billion. CAP reform in the

EU was a factor, as was expanding production of some

crops. The CAP restricted some commodities from

entering the region. Europe’s imports of U.S. bulk

commodities fell by $5.3 billion, while its imports of

HVPs rose $2.3 billion during this period. Expansion

of other non-tariff barriers also played a role, as did

growing competition from other exporters.

In the 1990s, the GDP of the former Communist block

countries declined and livestock herds disappeared.

Demand for bulk commodity exports dropped sharply

as a result. Since then these countries have emerged as

export competitors for bulk commodities, but as their

economies start to expand again they also are beginning to buy some higher valued U.S. exports.

Meanwhile, Western Europe has become an important

source of HVPs for the Eastern block, while the East

is boosting its exports of bulk commodities to the

West. Each of these regions competes with U.S.

exports to the other region. And each has the advantage of proximity in the other’s market, compared with

U.S. exports. U.S. exports of bulk commodities to

these countries, in particular, have plunged since 1976.

In contrast, the value of U.S. agricultural exports to the

Americas and Asia expanded over the 26-year period.

U.S. exports to the Americas rose from $3.4 billion in

1976 to $20.4 billion in 2002. U.S. exports to Canada

and Mexico already were rising in 1989, prior to the

implementation of NAFTA in 1994, which boosted

exports to Canada and Mexico further. Population

growth in the Americas has been a factor, as has

stronger economic growth and an expanding middle

class, particularly in Mexico. The proximity of U.S.

ports and the fact that these economies are closely tied

to U.S. economic performance also has been important. Sustained HVP exports to Canada and Mexico

have led the way for expansion into the rest of the

Western Hemisphere. Over the 26-year period, U.S.

exports of HVPs to the Americas have increased by

$12.8 billion, while bulk exports rose by $4.2 billion.

Growth of U.S. exports to Japan led the way for U.S.

export expansion in Asia. Recently, however, growth

Economic Research Service, USDA 7

Asia and the Americas Displace Europe as the Largest 

U.S. Agricultural Market

The value of U.S. agricultural HVP and bulk exports

to Western Europe, the former USSR, and Eastern

Europe, calendar years 1976-2002

Source: Economic Research Service, USDA, and 

Census Bureau, U.S. Department of Commerce.

Billion dollars

0

2

4

6

8

10

12

14

16

18

HVPs

Bulk commodities

1976 79 82 85 91 97 2000 88 94

Changing regional pattern of the total value of 

U.S. agricultural exports to various regions by 

calendar year

Source: Economic Research Service, USDA, and 

Census Bureau, U.S. Department of Commerce.

Billion dollars

1976 79 82 85 91 97 2000 88 94

10

20

30

40

50

60

70

Americas

Asia

Europe & NIS

0 Mideast, Africa, & Oceania
of exports to Japan has faltered as Japan’s economic

growth declined. U.S. agricultural exports to Japan

grew nearly 7 percent per year from 1976 through

1989, but since 1989 the rate of growth has shrunk to

just 0.2 percent per year. The agreements with Japan

on beef and citrus access were largely responsible for

Japan’s greater imports of U.S. agricultural products.

Exports to the rest of Asia grew at an average annual

pace of 8 percent between 1976 and 1989 and by 2.3

percent after 1989. Strong economic growth and the

emergence of a large middle class are largely responsible for Asia’s increasing demand for U.S. agricultural

goods. Asia’s imports of U.S. goods rose from $6.7

billion in 1976 to $19.7 billion in 2002. Economic

growth in Taiwan, South Korea, and several countries

in Southeast Asia boosted U.S. exports to the rest of

Asia, except during the 1997-99 crisis. The emergence

of China as a freer market and expansion of the middle

class in India also have been important factors in

increased exports to Asia, particularly in the last 5

years when the rest of Asia was weak. A strong U.S.

economy also has boosted Asia’s economic growth.

But because Japan is likely to continue weak, U.S.

exports to Asia are not expected to make quite as

strong a rebound as exports to the Americas in the

coming years.

HVPs clearly have been responsible for most of the

gains in U.S. exports to the Americas during the period. However, bulk commodity exports also show some

growth. During the 1990s, U.S. exports of HVPs to the

Americas more than doubled. HVP exports to the

Americas equaled $14.9 billion in 2002, while bulk

exports were $5.6 billion, compared with $2.1 and

$1.4 billion, respectively, in 1976.

HVPs gradually gained in the mix of Asia’s imports

from the United States. HVP exports to Asia rose by

$9.9 billion during the 26 years, with steady gains

through 1996, followed by a drop and stabilization

thereafter. In contrast, U.S. bulk commodity exports to

Asia show considerable variation over the period, rising and falling sharply, depending on the year and the

price. But U.S. bulk exports to Asia in 2002 were only

slightly above where they began in 1976 and considerably below the 1996 peak.

8 Economic Research Service, USDA

The value of United States HVP and bulk exports 

to Asia, calendar years 1976-2002

Source: Economic Research Service, USDA, and 

Census Bureau, U.S. Department of Commerce.

Billion dollars

1976 79 82 85 91 97 2000 88 94

0

2

4

6

8

10

12

14

16

Asia bulk

Asia HVPs

The value of United States HVP and bulk exports 

to Americas, calendar years 1976-2002

Source: Economic Research Service, USDA, and 

Census Bureau, U.S. Department of Commerce.

Billion dollars

1976 79 82 85 91 97 2000 88 94

0

2

4

6

8

10

12

14

16

Americas bulk

Americas HVPs
In 1976, Japan was the top U.S. agricultural export

market, followed closely by the Netherlands (which

includes transshipments to the rest of Europe),

Germany, the former USSR, and Italy—that is, much

of Europe. At that time, Canada ranked fifth as a U.S.

export destination, and Mexico was not among the top

15 U.S. agricultural markets. By 1989, Japan still led

U.S. export destinations, but strong gains had been

made by South Korea, Taiwan, China, and Mexico,

while European countries dropped in rank.

In 2002, exports to Japan were overtaken by exports to

Canada, and Japan slipped to being the second-largest

market, followed closely by Mexico and then South

Korea, China, and Taiwan. A few European countries

are still among the 2002 top 15 U.S. agricultural

export markets, but not nearly as many as before, nor

are they as highly ranked.

Japan’s economy has had particular difficulty recovering from the financial crises and has faced a decade of

lackluster growth. Its economic growth is likely to

rebound in 2003 and 2004, but only to about 1 percent.

In contrast, economic growth in Canada and Mexico

has already begun improving and prospects in the near

term are strong. Mexico’s GDP growth is projected to

rise from 2.6 to 3.8 percent in 2003 and 2004; Canada

is expected to reach 3.5 percent growth in 2004 compared with 2.4 percent in 2003. Consequently, U.S.

agricultural exports to Mexico also could overtake

exports to Japan in the near future.

Economic Research Service, USDA 9

Canada Becomes Number One U.S. Market; 

Mexico Not Far Behind

Value of total U.S. agricultural exports ranked for top destinations, by calendar year

Country 1976 Country 1989 Country 2002

Billion dollars

EUROPEAN UNION 7.79 JAPAN 8.2 CANADA 8.7

JAPAN 3.58 EUROPEAN UNION 6.9 JAPAN 8.4

FORMER USSR 1.56 FORMER USSR 3.6 MEXICO 7.2

CANADA 1.50 MEXICO 2.7 EUROPEAN UNION 6.1

KOREA, REP OF 0.83 SOUTH KOREA 2.6 SOUTH KOREA 2.7

INDIA 0.78 CANADA 2.2 CHINA (MAINLAND) 2.1

POLAND 0.49 CHINA (TAIWAN) 1.8 CHINA (TAIWAN) 2.0

TAIWAN 0.47 CHINA (MAINLAND) 1.4 HONG KONG 1.1

EGYPT 0.45 EGYPT 1.0 EGYPT 0.9

MEXICO 0.37 IRAQ 0.7 INDONESIA 0.8

Sources: Economic Research Service, USDA, and Census Bureau, U.S. Department of Commerce.

Americas

Asia

Europe & NIS

Oceania/Africa/Middle East
Not surprisingly, the fastest growing U.S. agricultural

exports are going to the largest U.S. export markets—

Canada, Japan, and Mexico. Since most expansion

over the last 26 years has been in processed HVPs, it

makes sense that two of the three leading markets are

developed economies.

U.S. exports to Canada have risen by more than $7 billion over the 26 years, from $1.5 billion to $8.7 billion, while exports to Mexico rose by $6.9 billion,

from $0.4 to $7.2 billion. Exports to Japan rose to

$11.7 billion in 1996 from $3.5 billion in 1976, but

have since dropped back to just $ 8.4 billion. For

Canada and Mexico, income growth, trade liberalization under NAFTA, and proximity have been important

factors in this expansion of export value. For some

commodities, higher prices also contributed. For

Japan, trade liberalization also played a part, as did

economic growth from 1976-1996, though not afterward.

However, in the 5 years since the 1997 financial crisis

slowed global economic growth, several bulk products

have disappeared from the top 10 U.S. agricultural

exports. In this period, the U.S. agricultural exports

showing the most growth in value have been almost

entirely processed HVPs. Part of the reason for this

has been relatively low commodity prices during these

5 years, particularly for bulk commodities. Bulk prices

were only just starting to recover again in 2002 and

2003.

10 Economic Research Service, USDA

Beef, Vegetable Products, Feeds, Grain Products, and Chicken

Meat Led Export Growth

Unit value of selected higher-valued U.S. 

agricultural exports by calendar year

Source: Economic Research Service, USDA, and 

Census Bureau, U.S. Department of Commerce.

$ per ton

Beef & veal-fresh or frozen

Essential oils

1976 79 82 85 88 91 94 97 2000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Unit value of selected U.S. agricultural exports

by calendar year

$ per ton

1976 79 82 85 88 91 94 97 2000

0

200

400

600

800

1,000

1,200

1,400

Other Grain products

Chickens-fresh/frozen

Soybean oil

Other feeds & fodders

Wheat, unmilled

Corn
The greatest gains in U.S. export values during the last

26 years occurred in fresh and frozen beef and veal.

Most of the growth in shipments was to Japan,

Mexico, South Korea, Canada, Hong Kong, and

Taiwan. These six countries have been among the

largest U.S. beef markets since 1988.

In value terms, a bulk commodity, soybeans, is second

in gains since 1976 and in 2002 was the leading U.S.

agricultural export. The EU continues to be the largest

market for U.S. soybeans, although exports to the EU

have declined from $1.9 billion to $1.2 billion over the

26-year period. However, in 2002, China surpassed

other large markets, such as Japan, Mexico, Taiwan,

Indonesia, and Canada, to rise to second-largest market for the first time. China, which continued to be a

large market in 2003 due to recent policies promoting

soybean imports to supply its oilseed-crushing industry, shows the largest gains in imports from the United

States by far. However, Mexico, Indonesia, South

Korea, and Japan also have grown as importers.

Corn and wheat were the two next-largest U.S. exports

in 2002, after soybeans. These commodities traditionally have been the largest U.S. exports, but have

slipped in rank in recent years. In 2002, corn went primarily to Japan, Mexico, Taiwan, Canada, and Egypt.

Top customers for U.S. corn have changed little since

Economic Research Service, USDA 11

Bulk commodities

Semiprocessed HVPs

Processed HVPs

U.S. agricultural exports with greatest gains in value

2002 over 1976

Million dollars

Beef & Veal-fresh & frozen 2,379.2

Soybeans 2,361.7

Other Vegs-prepared or preserved 1,966.5

Other feeds & fodders 1,633.7

Other grain products 1,209.9

Chickens-fresh & frozen 1,148.7

Cotton, excluding linters 966.3

Pork-fresh & frozen 923.3

Beverages, excluding juices 758.7

Essential oils 721.9

Sources: Economic Research Service, USDA, and Census Bureau, 

U.S. Department of Commerce.

Top-ranked U.S. agricultural exports, by value, selected calendar years

1976 1989 2002

Billion dollars

Corn 5.2 Corn 6.6 Soybeans 5.7

Wheat, unmilled 3.9 Wheat, unmilled 5.9 Corn 4.8

Soybeans 3.3 Soybeans 3.9 Wheat, unmilled 3.6

Cotton, excl. linters 1.0 Cotton, ex. Linters 2.2 Beef & Veal, fresh & frozen 2.5

Soybean meal 0.9 Beef & Veal-fresh & frozen 1.4 Other Vegs-prep or pres. 2.1

Tobacco, flue-cured 0.7 Bovine hides-whole 1.3 Cotton, ex. Linters 2.0

Rice-paddy, milled, parb. 0.6 Soybean meal 1.1 Other feeds & fodders 1.9

Grain sorghums 0.6 Rice-paddy, milled, parb. 1.0 Other Grain Products 1.3

Bovine hides-whole 0.5 Grain sorghums 0.9 Chickens-fresh & frozen 1.3

Tallow, inedible 0.4 Other Feeds & Fodders 0.8 Soybean meal 1.2

Sources: Economic Research Service, USDA, and Census Bureau, U.S. Department of Commerce.
1989 when the former Soviet Union, the EU, and

South Korea were larger importers and Canada was

smaller. The change in wheat markets since 1989,

however, is more notable. In 1989, China was the

largest market, followed by the former Soviet Union,

Egypt, Japan, and Pakistan. The largest U.S. wheat

markets in 2002 were Japan, Mexico, Egypt, Nigeria,

and the Philippines. U.S. corn and wheat are the two

commodities that have begun to face greater competition in the past 5 years from exporters emerging in the

Black Sea region as the former Communist countries

expand production and markets.

“Other vegetables prepared or preserved,” which ranks

third in value gains among exports since 1976 and is

the fifth-ranked 2002 export, includes a number of

processed products. In this group are dried and canned

mushrooms, truffles, onion and garlic powder, cassava,

sweet potatoes, other tubers, flour, meal, starches of

vegetables and potatoes, vegetables preserved in vinegar, sauces, seasonings, and soups. Canada, Mexico,

Japan, South Korea, and Taiwan were the largest markets in 2002 and also show the largest gain in value

since 1976 for this export.

Not all the growth over the 26-year period, however,

occurred in Canada, Mexico, and Japan. For example,

Mexico, Turkey, Indonesia, Thailand, and China now

consistently rank among the largest importers of U.S.

cotton, along with some of the more traditional destinations such as South Korea, Japan, and Taiwan,

which have declined in importance in recent years.

These gains in cotton exports to nontraditional markets

reflect the trend towards contraction of textile and

apparel industries in developed countries such as

Europe and Japan and expansion of the same industries in less developed countries.

Since 1994, Russia and Hong Kong have become the

largest U.S. markets for chicken meat, followed by

Canada and Mexico. Canada and Hong Kong have

been large markets throughout the 26-year period, but

Russia and Mexico are relative newcomers to the top

of the list for this export. Exports of chicken to

Mexico began rising in 1988. Exports to Russia started

rising in about 1990, when it was still part of the

Soviet Union. And U.S. exports of chickens to Japan

and Singapore, formerly large markets, have declined

markedly since the Asian financial crisis in 1997.

Rising demand for other meats, such as high-quality

American and Australian beef, has reduced poultry

meat consumption in these markets.

Mexico is now the major U.S. market for exports of

“other grain products.” This group is made up largely

of processed products such as pasta, pastries, and

cakes in which grains are the main ingredient, as well

as of groats, meals, and flours of grains. Mexico has

shown by far the largest gains in import of these products from the United States. Canada and the EU run a

distant second and third to Mexico in both total

imports and growth of imports of this commodity from

the United States.

“Other feeds and fodders” is another export group with

strong gains since 1976. Japan, the EU, Canada,

Mexico, and South Korea were the top destinations for

this export in 2002. The EU, Japan, Canada, and

Mexico have been among the top U.S. markets since

1976. Virtually all the growth in this export since 1976

has been in these five countries, but recently, Taiwan,

Thailand, and Indonesia have gained as well.

12 Economic Research Service, USDA