State’s Farm Export Skid May Be Over
Though California farm exports dropped as expected last year, according to final trade figures released last week, some agricultural experts are expecting a brighter 1986.
Foreign sales declined 3% to $2.8 billion, the state Department of Food and Agriculture reported. That marked the fourth year of decline--from $3.1 billion in 1983, $3.3 billion in 1982 and a record $4.2 billion in 1981.
So far in 1986, however, incomplete national figures suggest to some state agricultural and trade experts that the worst is at last behind for farm exports. “We have had reports of good sales of wines, raisins and almonds and walnuts,” said Ray Borton, the department’s senior agricultural economist. “So I think we’re probably going to do all right.”
The Japanese have eased trade restrictions that have kept California in-shell walnuts and cherries out of that country, and the state’s first walnut shipment is on the way, said Anne Burton, an agricultural specialist with the State World Trade Commission.
“Overall,” she said, “I’m optimistic that we’ll see a stabilization if not an increase in agricultural exports in 1986.”
Both Borton and Burton cited a variety of new federal and state trade-enhancement programs whose effects have become fully felt only in recent months--especially in the case of cotton, perennially the state’s No. 1 export commodity. Rice sales also are up, thanks to a similar trade program.
Moreover, a 1986 almond crop halved by February rains is commanding high prices in the face of strong overseas demand, Burton said. And Sunkist Growers said it has found generally better citrus prices after experiencing increased sales volume but a 4% decline in value last year to $208.2 million.
California led the nation last year in accounting for about 10% of total farm exports, the department said. Iowa was second with $2.4 billion, followed by Illinois with $2.3 billion.
Pacific Rim trade partners took 54.9% of California exports. Worldwide, Japan was the leading foreign buyer with 28.4%, followed by the European Community with 21.8%, South Korea 14.7%, Canada 14.6%, the Soviet Union 5.4% and Hong Kong 4.9%.
Almonds contributed the state’s chief success story last year, operating within a trade climate that continued to be rough for exporters in general. California almond growers, who produce the nation’s total crop, shipped $400 million worth of almonds, buoyed by major sales for the first time to the Soviet Union (for use in chocolate candy). This was up 27% from 1984, and not far off 1980’s record $429.8 million.
Cotton remained the state’s leading export crop with gross foreign sales of $617.5 million, down 1% from $625 million, despite a 5% increase in the volume of cotton shipped--a reflection of low world prices.
Grape and wine sales remained flat at $195.1 million, while rice sales were up 19% to $109.2 million.
Among products with lesser volumes of exports, several reported record sales last year, including alfalfa with $53.7 million in foreign sales, strawberries with $35.9 million and grapefruit with $27.7 million.
