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Utah produces agricultural products that are exported worldwide. In 2007, the
State's cash receipts from farming totaled $1.3 billion, and exports were
estimated at $344 million. These exports help boost farm prices and income,
while supporting jobs both on the farm and off the farm in food processing,
storage, and transportation. Measured as exports divided by farm cash receipts,
the State's reliance on agricultural exports was
26 percent in 2007.
Utah's top agricultural exports in 2007 were:
wheat and products -- $116 million
hides and skins -- $81 million
live animals and red meats -- $52 million
dairy products -- $25 million
World demand for agricultural products is increasing, but so is competition
among suppliers. If Utah's industries are to compete successfully for export
opportunities in the 21st century, they need fair trade and more open
access to growing global markets.
How Trade Agreements Benefit Utah Agriculture
Utah benefited from limits set on subsidized wheat exports during the Uruguay
Round. These limits influenced the EU's decision to make changes to its Common
Agricultural Policy and ultimately lowered internal EU market prices to world
price levels. Annual EU wheat exports dropped from 22 million tons to about 14
million tons as lower market prices stimulated domestic use. Meanwhile, annual
EU wheat imports jumped from 1.5 million tons to 7 million tons as the levied
margin of protection fell. This translates to an 11-percent reduction in global
export competition and a 5.5-million-ton increase in EU wheat imports, a third
of which is supplied by the United States.
Under the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR),
U.S. prime and choice cuts of beef gain preferential access as applied tariffs
of 15 to 30 percent are immediately eliminated (except the Dominican Republic)
while those applied to other cuts are phased-out over 15 years. Tariffs on beef
offal and other beef products are phased out over 5 to 10 years. As part of the
agreement, all six countries are working toward the recognition of the U.S. meat
inspection and certification systems, which would replace the existing policy of
plant-by-plant inspections and approval. From 2001 through 2003, U.S. suppliers
annually shipped on average 4,094 metric tons valued at $9.8 million to all six
countries combined.
Export Success Stories
Washington, Oregon, Idaho, and Utah are the benefactors of joint export
efforts by Northwest Cherries and the USDA under the Market Access Program
(MAP). With the new acreage of cherries in the northwest coming into production,
the export promotion program will be key to finding overseas markets for the
expanded U.S. production. Northwest Cherries are marketed as "The Diamond of
Fruit" creating a brand identity known throughout the world. Because of the
successful campaign, Northwest Cherries has been able to demand higher prices
and provide a product that is valued by importers, retailers, and the consumers.