AgNet DEMO

Category: Exports/Imports

  • Opportunity Awaits? Blueberry Exports to China Could Be Game Changer

    File photo shows blueberries on sale.

    While the pending International Trade Commission decision regarding the case of serious injury that imports have had against blueberry growers will be pivotal for producers in Florida and Georgia, another marketing opportunity may lie with producers capitalizing on exports to China.

    Greg Fonsah, University of Georgia Agribusiness Extension economist, said during Friday’s Ag Forecast meeting there is a real opportunity for blueberry growers to capitalize on an exports market, especially as Chinese consumption of blueberries has increased dramatically; from 28 million pounds in 2012 to 360 million pounds in 2018.

    Historic Agreement

    Because of the U.S.-China Economic Trade Agreement, the U.S. was granted access to export blueberries to China, as of May 2020.

    “It is about time for the U.S. to also penetrate that market and get a share of the market especially in that May 2020 we had this agreement with the Chinese government,” Fonsah said. “It is going to be an opportunity for the U.S. blueberry industry to start looking at the Chinese market and try to capture a huge market share, just like Chile, Peru, Argentina and Mexico.”

    Flooded Market

    The region’s blueberry growers need every market source they can get at this point. Increased domestic production of blueberries combined with increased imports have flooded the U.S. market. Unfortunately, when markets flood, prices plunge. This is a focal point of the American Blueberry Growers Alliance case to the International Trade Commission that a serious injury has occurred.

    “The market has totally changed in 10 years, totally changed,” Fonsah said. “We have also doubled the production. The domestic production plus imports coming from Mexico, guess what, we have flooded the market.”

    Imports from Latin America remains the primary challenge to Southeastern blueberry producers’ production. From 2010 to 2019, Peru’s export production to the United States exploded from almost nothing to 140 million pounds. Mexico’s production soared to almost 80 million pounds, according to the U.S. Department of Commerce, Bureau of the Census.

    Exports from Mexico soared to around 23 million pounds in April 2020 compared to 16 million in 2019 and 13 million in 2018.

    The domestic FOB (freight on board) price in October 2010 neared $35 per flat. In September 2019, the price plunged to $15 per flat, according to the USDA Agricultural Marketing Service.

    “The huge production from Mexico and the huge production domestically has helped flood the U.S. market and helped depress the prices,” Fonsah reiterated.

    U.S. fresh-market production of blueberries increased from about 250 million pounds in 2010 to about 370 million pounds in 2019, according to the USDA National Agricultural Statistics Service.

  • Florida Blueberry Producer: Data Makes the Case for Us

    house
    File photo of blueberry production.

    A decision could come soon for Southeast blueberry growers hoping to find relief from seasonal imports causing harm to their farming operations.

    The International Trade Commission (ITC) heard the American Blueberry Growers Alliance Case in early January. Now, it will formulate a recommendation for President Biden to decide how to move forward.

    “I think the data makes the case for us. I think we have the data on our side. It’s hard not to look at the data and see what’s going on,” said Ryan Atwood, who lives in Mount Dora, Florida and farms 56 acres of blueberries, manages another 350 acres and is part-owner of the largest packing house in the Southeast United States.

    Gloomy Picture

    The statistics paint a picture of Southeast blueberry producers struggling to compete with imports from other countries, namely Mexico.

    Florida Ag Commissioner Nikki Fried said Florida’s blueberry market share had declined by 38% since 2015. Mexico’s market share has increased by 2,100% since 2009.

    Brittany Lee, Executive Director of the Florida Blueberry Growers Association said in 2010, when her family planted blueberries, there were only 1.8 million pounds of Mexican blueberries in the Florida window of March, April and May. Last year, there was 51.68 million pounds in that window.

    Jerome Crosby, Chairman of the American Blueberry Growers Alliance, testified that imports of fresh blueberries have increased 75% over the past five years and is only expected to worsen.

    According to the American Blueberry Growers Alliance, the U.S. Department of Agriculture Marketing Service reported a 68% increase in imported fruit from Mexico from 2019 to 2020, amounting to more than 15 million pounds of fresh blueberries during a 14-week period. Mexico, along with Peru, Chile, Canada and Argentina account for more than 98% of total U.S. imports. Import values increased from $530 million in 2014 to $1.2 billion in 2019.

    Opposing Groups

    Groups who opposed the blueberry’s alliance case also made their case to the ITC. Atwood believes their makeup consisted mostly of marketers and not farmers.

    “The only thing that I felt hurt us was they tried to portray themselves as a bunch of growers. Honestly, it was marketing interests that were being represented on the opposition,” Atwood said. “I think anyone who knows the industry and knows the players and knows who was on who’s side know it was marketers on the other side and growers on our side. It was pretty clear.”

    Now comes the hard part…waiting.  A recommendation from the ITC and a decision from President Biden could come as early as March.

    “I don’t know how this will all turn out if the president will sign it. That’s to be determined, to be seen. I think there’s a lot of us that are really interested in the outcome. One good thing about the process, it’s a fairly quick process when you think about it in terms of being politics,” Atwood said. “Start to finish, it’s going to end up being what, four, five, six months? I’m pleased at least that it wasn’t like we were dragging this thing out over three or four years.”

  • Hope Springs Eternal

    Photo credit: © Wayne Smith

    By Ryan Atwood

    To be a farmer is to be an optimist. Farmers work long hours, deal with weather events, labor issues, trade issues and global pandemics that are beyond their control. The 2020 Florida blueberry harvest season was a tough one due to increased imports and the coronavirus pandemic. The government did provide some assistance to farmers through the Coronavirus Food Assistance Program, which will help them continue forward into the coming 2021 season.

    WINTER WEATHER

    Florida blueberry growers have hedged and regrown their bushes for the year. Fall season into winter is a time for flower bud development, which gives the first indication of the crop to come. It is too early to tell what size crop Florida will produce. The Florida industry has been pretty stable in production numbers (~20 million pounds) the last few years due to some decent amount of cooler weather in the late fall and early winter.

    During the last warm (no chill) winter, the state struggled to produced 15 million pounds. This winter, climate forecasters are calling for a La Niña weather cycle. La Niña events are predicted to produce warmer temperatures and less rainfall than on average. The Florida blueberry industry has been moving to more evergreen production, which warmer weather tends to favor in terms of crop timing. A warmer winter most likely will not have quite the negative effect on statewide volumes like it has in the past.

    November tends to be the slowest month in blueberry production. Most growers take a vacation, work on getting their overhead irrigation ready for cold protection and replant new or existing ground. Things start to ramp back up in December as plant growth regulators are typically applied to stimulate the plants into flowering in January.


    In January and February, growers battle cold weather events during pollination. This leads to the setting of their berries that will be harvested in the spring. The spring brings hope of good yields with excellent quality.

    MEXICAN COMPETITION

    The unknown challenge this spring will be the ever-increasing Mexican blueberry volume during the Florida harvest window.

    Mexican blueberry production has increased dramatically over the last decade. This has led to reduced prices and returns to Florida growers. Many Florida blueberry farms have thrown in the towel the past several years. Others have turned from commercial to u-pick operations.

    The American public is growing more aware of the increase in foreign food supply. As U.S. consumers become more aware of this, the #DemandAmericanGrown campaign will continue to gain traction. We as agricultural producers need to continue (or start if you have not already begun) to educate our fellow Americans on the importance of American agriculture.

    What happens if our country were to become dependent on a foreign supply for food? We would be at the mercy of those who produce that food. This seems absurd to many Americans, as food is relatively abundant for most of our population. However, one only needs to look at socialist countries such as Cuba, Venezuela and others to see the effects of a short food supply.

    America was built on its great agricultural history. If we want to continue to be a great country, we need to be committed to local agriculture. It is a matter of national security.

    Ryan Atwood is co-owner of H&A Farms in Mt. Dora, Florida

  • Blueberry Imports Devastating to Florida Industry

    Florida’s agricultural and political leaders had their say Tuesday in describing the negative impact blueberry imports have had on the state’s farmers.

    “Agriculture is essential to Florida’s economy. Our No. 1 economy is tourism, obviously, but our No. 2, and it’s very close behind tourism is in fact agriculture. It means so much to Florida that it’s a $131 billion economic impact, providing nearly 1.4 million jobs,” said John Rutherford (FL-04), who testified during a virtual hearing with the U.S. International Trade Commission that blueberry imports are devastating to the state’s economy.

    “For years Florida has been impacted by countries taking advantage of our domestic market for produce. Growers in my district and around the state have voiced their concerns by providing data which details the harm caused by these imports. Unfortunately, as a result of these issues, many producers have had to shut down their farms through no fault of their own.”

    Statistically Speaking

    Nikki Fried, Florida Ag Commissioner, said that the state’s blueberry industry is valued at $62.3 million, but its market share has declined by 38% since 2015. Mexico’s market share has increased by 2,100% since 2009.

    Brittany Lee, Executive Director of the Florida Blueberry Growers Association and Vice President and Farm Manager of Florida Blue Farms in northeast Florida, spoke personally of how imports have impacted her family’s farm.

    “In 2010, the year we planted blueberries on my farm here, there was only 1.8 million pounds of Mexican blueberries in the Florida window which we consider March, April and May. Last year there was 51.68 million pounds in that window,” said Lee.

    “Mexico has concentrated their production in the mid-March to early April season which is directly on top of Florida. I can tell you that the impact has been absolutely devastating to the Florida industry.”

  • What Next in ITC Blueberry Investigation?

    The long-awaited hearing with the International Trade Commission (ITC) for blueberry farmers has come and gone. The case against blueberry imports from foreign competitors has been made.

    Now what happens?

    Bob Redding, who works for the Redding Firm and serves as a lobbyist for agricultural groups in Washington, D.C., outlines the potential outcomes that will occur following Tuesday’s hearing. It all depends on the recommendations the ITC makes to President-Elect Joe Biden and what path he chooses to take after assumes office.

    Potential Outcomes

    “The president can ignore it, change it or accept it. This will be quickly, after the ITC action, a political issue again with the administration. Having said that, we do not know the position of the president yet, on this issue. It’s too early,” Redding said.

    “We need to get a U.S. Trade Rep in place first and we will start working with them, our congressional delegations start working with them to hopefully get a good position on that issue.”

    The case was made tougher considering the American Blueberry Growers Alliance’s opposition.

    “We have a lot of groups against us. A lot of the countries that are pushing product at a bad time of the year have hired up lawyers, economists, lobbyists and consultants to fight the American Blueberry Growers Alliance position in trying to get relief from seasonal imports at the ITC,” Redding said.

  • USITC to Investigate Effect of Imports on the U.S. Cucumber and Squash Industries

    File photo shows cucumbers.

    The U.S. International Trade Commission (USITC) is seeking input for two new general factfinding investigations on the effects of imported cucumbers and imported squashes on the U.S. seasonal cucumber and squash markets.

    The investigations, Cucumbers: Effect of Imports on U.S. Seasonal Markets, with a Focus on the U.S. Southeast, and Squash: Effect of Imports on U.S. Seasonal Markets, with a Focus on the U.S. Southeast, were requested by the U.S. Trade Representative (USTR) in a letter received on December 7, 2020.

    As requested, the USITC, an independent, nonpartisan, factfinding federal agency, will examine the effect of imports on the domestic seasonal markets of cucumbers and squash in separate but concurrent investigations and produce two separate reports. The reports will provide, to the extent practical:

    • descriptions of the effects of imports on the domestic seasonal markets of the products in question, with particular focus on production and the competitiveness of cucumbers and squash grown in the Southeastern United States;
    • information on recent trends in trade in these products between the United States and its trading partners, including information on seasonal patterns of trade; and
    • descriptions of monthly price trends for these products in the United States, including an analysis and comparison of the prices of domestically produced and imported products in the U.S. market, with a focus on the 2015-2020 time period. 

    The USITC expects to transmit both of its reports to the USTR no later than December 7, 2021.

    The USITC will hold a public hearing in connection with the investigations at 9:30a.m. on April 8, 2021.  Because COVID-19 mitigation measures are in effect, the public hearing will be held via the WebEx videoconference platform.

    Information about how to participate in the hearing will be posted on the Commission’s website no later than March 11, 2021, at https://usitc.gov/research_and_analysis/what_we_are_working_on.htm.

    Requests to appear at the hearing should be filed no later than 5:15 p.m. on March 25, 2021, with the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.  See below for important information regarding filing a request to appear at a USITC hearing.

    The USITC also welcomes written submissions for the record.  Written submissions should be addressed to the Secretary of the Commission and should be submitted no later than 5:15 p.m. on April 27, 2021. All written submissions, except for confidential business information, will be available for public inspection.  See below for important information regarding the filing of written submissions for USITC investigations.

  • Will 2021 Be Any Different?

    Mexican imports still a problem for Southeast producers.

    This year was a season unlike any other for produce farmers in the Southeast.

    Not only did COVID-19 strike at the worst time, but lingering international trade issues with Mexico resulted in diminished market prices for producers like Tifton, Georgia farmer Bill Brim.

    If something isn’t done soon, 2021 will be no different than 2020.

    “We’ve been fighting Mexico since probably the last week of October through now. It’s just been one battle after another with squash prices dipping down to $3, $2, whatever you can get for it to cucumbers at $9 when it ought to be $20. Squash at $3 or $2 should be $12 or $14,” Brim said.

    “It’s hard when you don’t make any money. It’s one of those things where farmers are resilient thinking, they’re going to make a million dollars next year instead of losing a million. We’re kind of stupid, I guess. We think we can outsmart them, but I don’t think we’re smart enough to do that anymore.”

    Virtual Hearings

    Brim and fellow farmers testified in August during virtual hearings with the U.S. Trade Representative’s Office regarding unfair trade practices with Mexico. The hearings provided the U.S. Department of Commerce and Trump Administration an opportunity to hear from growers in Georgia about the urgent need for federal action regarding unfair trade.

    Federal agencies responded in September by outlining the Trump Administration’s plan to address the threat posed by increased imports. The plan included a request to the International Trade Commission to initiate a Section 201 global safeguard investigation into imports of blueberries.

    In November, Georgia Congressmen requested a Section 332 Investigation on squash and cucumbers which was already being done for strawberries and bell pepper.

    Cucumbers, Squash Included

    On Dec. 4, U.S. Trade Representative Robert Lighthizer requested that the U.S. ITC include in its investigations the import of cucumbers and squash and the effect on the domestic seasonal markets.

    Hopefully, a long-term solution is in the works and will be imminent. It will not be a moment too soon.

    “The last four seasons have been the toughest. We did benefit in the fall, early a little bit, so that helped us. In the spring late, in the last week of May and the first week or two of June, we did fairly well because Mexico wasn’t in. Of course, they weren’t in early on the fall deal. But as soon as they open that door, it’s like somebody just shut the lights off,” Brim said.

    “Pepper undoubtedly must have been a little later in Mexico because they didn’t hit in our market until right at the tail end of it. It went from like $22 to like $14 overnight. It doesn’t seem to change. People just don’t get it.

    “We’ve got to have something, or we won’t survive. I just don’t know how they can continue to think we can survive when (Mexico is) paying their people down there 81 cents an hour and we’re paying $11.77 plus free housing, free transportation and everything else. We’ve got about $15 an hour in it by the time we finish up doing everything for them.”

  • U.S. Blueberry Growers Form New Alliance to Seek Import Remedies

    File photo shows blueberries.

    WASHINGTON, December 16, 2020 – Blueberry growers across America today established a new coalition, the American Blueberry Growers Alliance, to seek relief from rising imports that are harming their businesses. The Alliance will provide information and support to an ongoing U.S. International Trade Commission (ITC) investigation into the serious injury caused by increased imports of fresh, chilled and frozen blueberries under Section 201 of the Trade Act of 1974.

    Blueberry imports are sourced from several countries in the Western Hemisphere. Imports rose by more than 60% between 2015 and 2019. Imports from Peru and Mexico have increased by 1,258 and 268% during that same period, respectively, driving blueberry prices down by double digits, which has had a devastating impact on the domestic blueberry industry.

    Alliance members are asking for bipartisan support from the U.S. government and Congress to use existing trade laws to remedy the injury to U.S. growers, support hard-working blueberry farmers, and preserve and enhance a U.S.-grown blueberry supply. The Alliance is also warning that in addition to injuring domestic businesses and livelihoods, rising imports expose American consumers to products from countries with poor food safety protocols.

    “We have been telling Washington about unfair trade practices for years,” said Jerome Crosby, CEO of Pineneedle Farms in Georgia and head of the Alliance’s steering committee. “Our family farms continue to be harmed by a flood of blueberry imports. We need relief and for our leaders to stand with American growers.”

    “Many family farms have become a casualty of rising imports and are being forced out of commercial production as other countries increase production to deliberately target the U.S. market,” said Brittany Lee, executive director of the Florida Blueberry Growers Association. “If something is not done, we will lose the blueberry industry in the United States.” 

    The Alliance includes blueberry growers in Georgia, Florida, Michigan and California.

    The Alliance recently received support from a coalition of 32 members of the U.S. House of Representatives. In a letter to the U.S. International Trade Commission, the congressional members said: “The significant surge of imports of blueberries in recent years, the timing of such imports during U.S. harvest periods, the extremely low pricing of the imports, and the targeting of the U.S. blueberry market by foreign exporters has had a devastating impact on the blueberry industry…As the Commission develops the evidentiary record in this case, it will be clear that imports are a substantial cause of serious injury to farmers. We urge the Commission to promptly make an affirmative determination in this regard.”

    The ITC plans to hold hearings in early 2021 and then deliver a report on blueberry injury and remedies to the White House. Under Section 203, the President then determines what action to take. To support this investigation, Alliance members are providing data and evidence on how blueberry imports are impacting their production, pricing and marketing activities, especially during the critical U.S. spring and summer harvesting seasons.

    For more information, please visit americanblueberrygrowers.com.

  • Senators Perdue, Loeffler Fight to Level Playing Field For Georgia Farmers

    Perdue

    Highlight Impact Of Seasonal Produce Imports On Southeastern Growers

    WASHINGTON, D.C. – U.S. Senators David Perdue (R-GA) and Kelly Loeffler (R-GA) continue to fight for a level playing field for Georgia farmers. In a letter to U.S. Trade Representative (USTR) Robert Lighthizer, the Senators requested a broadening of USTR’s current Section 332 investigation to include the impact of seasonal cucumber and squash imports on Southeastern markets.

    “Fruit and vegetable imports from Mexico continue to dramatically impact U.S. markets and threaten the future of domestic farm production of perishable produce,” wrote the Senators. “In the last twelve months, we have seen further growth in imports across several vegetable products.”

    “Prices have followed supply, and growers are now reporting tumbling prices across the board for vegetables,” continued the Senators. “Prices are now well below U.S. production costs for several of these commodities and appear to correlate directly with increasing fall shipments from Mexico.”

    Loeffler

    “These market changes occur quickly and can make or break a grower’s season in a matter of days if import increases and the resulting price decreases coincide with harvest. For this reason, we urge you to consider requesting a Section 332 investigation for cucumbers and squash in order to determine the impact of these seasonal imports on Southeastern markets,” concluded the Senators.

    Read the full letter here.

  • U.S. Looking for Trade Action Against Fresh Produce Imports

    File photo shows strawberries ready to be picked.

    Fresh produce coming into the United States is receiving increased scrutiny from the Trump Administration. Imported strawberries are now on the list of imported items that the administration wants investigated for possibly harming U.S. fruit and vegetable growers. Strawberry imports, mainly from Mexico, represent about 16% of the U.S. market, valued at approximately $2.5 billion every year.

    Gro-Intelligence Dot Com says if the investigation proceeds, any potential trade action could result in higher strawberry prices in the U.S. market. Officials are also requesting a probe into the imports of fresh peppers, which is the second-largest vegetable import into America.

    U.S. imports of strawberries totaled 184 million tons last year, a four-fold jump since 2005. About 99% of the imports come from Mexico, where a weak peso has made exports much more competitive with domestic production. U.S. farmers, especially in the Southeastern states, say the low-priced imports are putting domestic growers at a significant disadvantage.

    A similar Section 201 investigation by the U.S. International Trade Commission was recently requested for blueberry imports into the U.S.  

    (From the National Association of Farm Broadcasters)