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Arizona is an important producer and exporter of agricultural products. In
2006 the State's cash farm receipts totaled $2.9 billion. As for exports,
Arizona shipped an estimated $520 million in agricultural products in 2006.
Agricultural exports help boost farm prices and income, while supporting about
6,200 jobs both on and off the farm in food processing, storage, and
transportation. Exports remain important to Alabama's agricultural and statewide
economy. Measured as exports divided by farm cash receipts, the State's reliance
on agricultural exports was 18 percent in 2006.
Arizona's top five agricultural exports in 2006 were:
• cotton -- $123 million
• vegetables and preparations -- $105 million
• dairy products -- $40 million
• planting seeds -- $39 million
• wheat and products $35 million
World demand for these products is increasing,
but so is competition among suppliers. If Arizona'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 Arizona Agriculture
Arizona’s cattle and calf industry accounts for
nearly 20 percent of the state’s farm cash receipts. Arizona agriculture has
benefited as some of the top international markets significantly reduced tariffs
on cattle and beef. Under the NAFTA, Mexico eliminated its 15 percent tariff on
live slaughter cattle, its 20-percent tariff on chilled beef, and its 25 percent
tariff on frozen beef. Mexico is one of the fastest growing markets for U.S.
beef. U.S. beef exports to Mexico rose from the 1993 pre-NAFTA level of 39,000
tons valued at $116 million to 207,000 tons valued at $596 million in 2002.
Under the U.S.-Central America-Dominican
Republic Free Trade Agreement (CAFTA-DR), Arizona’s vegetable industry will benefit. Under the FTA,
Australia will immediately eliminate a 5-percent duty on U.S. vegetable exports
including potatoes (fresh, dried and flakes), sweet corn (frozen and canned),
and spinach. From 2001 through 2003, U.S. suppliers annually shipped on average
$21.5 million worth of vegetable and vegetable products to Australia.
Export Success Stories
An Arizona citrus company recently participated
in a Western U.S. Agricultural Trade Association (WUSATA) sponsored trade
mission to Chile. This company has initial expectations of selling about $50,000
of Arizona grapefruit in 2005 but is very confident that "after the first year
the volume will grow exponentially…."
As a result of U.S. Wheat Associates marketing
efforts, the largest durum mill in Switzerland purchased its very first cargo of
U.S. Desert Durum during 2003. This purchase followed USWA-sponsored durum trade
team visit to Arizona and several years of relationship building efforts.