Printer Friendly Format
Mississippi is an important producer of agricultural products and exports
worldwide. The State's farm cash receipts totaled $3.8 billion in 2006.
Agricultural sales overseas were estimated at $950 million in 2006. Agricultural
exports help boost farm prices and income, while supporting about 11,200 jobs
both on the farm and off the farm in food processing, storage, and
transportation. Exports are important to Mississippi's agricultural and
statewide economy. Measured as exports divided by farm cash receipts, the
State's reliance on agricultural exports was 25 percent in 2006.
Mississippi’s top five agricultural exports in 2006 were:
• cotton -- $447 million
• poultry and products -- $200 million
• soybeans and products -- $111 million
• rice -- $88 million
• feed grains and products – $29 million
World demand for these products is increasing,
but so is competition among suppliers. If Mississippi's farmers, ranchers, and
food processors are to compete successfully for the export opportunities of the
21st century, they need fair trade and more open access to growing
global markets.
How Trade Agreements Benefit Mississippi
Agriculture
As one of the leading states in poultry
production, Mississippi benefited under the Uruguay Round agreement when Korea
eliminated its import quotas on frozen chicken in 1997, and reduced its tariffs
to between 18 to 20 percent by 2004. These steps supported a rise in U.S.
poultry to 120,000 tons valued at $79 million by 2002. The Philippines opened a
tariff-rate quota for poultry meat of 16,701 tons in 1998, which rose to 23,500
tons by 2004.
Under the U.S.-Central America-Dominican
Republic Free Trade Agreement (CAFTA-DR), all applied import tariffs on U.S.
poultry meats that currently range between 30 and 164 percent will be eliminated
over 10 to 18 years depending on the product and country. Each country also
commits to adopting a "systems approach" to the recognition of the U.S. poultry
inspection system, thereby eliminating plant-by-plant inspections and
facilitating trade. From 2001 through 2003, U.S. poultry meat suppliers annually
shipped on average 65,550 metric tons valued at $61 million to all six countries
combined.
Mississippi benefits under NAFTA with new rules
of origin that increase demand for U.S. textiles in Canada and Mexico. Mexico’s
10-percent tariff on cotton has been eliminated. This tariff reduction supports
U.S. cotton exports to Mexico, which rose from 558,000 bales to 2.2 million
bales from marketing year 1995 to 2002. U.S. industry estimates that the
Caribbean Basin Initiative and Africa Growth and Opportunity Act will increase
annual cotton sales by 100,000 bales.
Export Success Stories
Using USDA Market Access Program (MAP) funds,
Mississippi catfish has been successfully promoted to Canada’s largest food
retailer, Loblaws. The Catfish Institute (TCI) forged a new marketing alliance
with Loblaws’ sister division, Real Atlantic Superstores (RASS). An initial
product launch with RASS included a chain-wide flyer combined with in-store
sampling at 25 of the chain’s 46 stores in Atlantic Canada. The catfish
promotions also featured decorations, product posters, take-home recipes and
educational literature. As a result of this promotion, over 1,200 pounds of
catfish were sold in one weekend.