Printer Friendly Version

Colorado is an important producer and exporter of agricultural products. In 2006, the State's cash farm receipts totaled $5.3 billion and its agricultural exports totaled $852 million. Agricultural exports helped boost farm prices and income, while supporting about 10,100 jobs both on and off the farm in food processing, transportation, and manufacturing. Exports remain vital to Colorado's agricultural and statewide economy. Measured as exports divided by farm cash receipts, the State's reliance on agricultural exports was 16 percent in 2006.

Colorado’s top five agricultural exports in 2006 were:

• live animals and meat -- $154 million
• wheat and products -- $148 million
• hides and skins -- $120 million
• feed grains and products -- $115 million
• vegetables and preparations -- $81 million

World demand for these products is increasing, but so is competition among suppliers. If Colorado'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.

Recently negotiated trade agreements will benefit Colorado’s meat industry. For example, under the U.S. – Chile FTA, governments agree to immediately recognize each others’ grading systems, making it possible for USDA to certify beef product for export to Chile. U.S. fresh and frozen beef products gain preferential access as tariffs are reduced and then eliminated in the 4^th year of the agreement. Chile imported 85,000 tons of beef valued at $153 million in 2001, making it the world’s ninth largest beef importer. It is expected that U.S. beef will find its niche in the high-end, higher valued Chilean beef market.

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.

Colorado companies are still finding a valuable outlet for their meats in Poland, despite the discovery of BSE in a single cow in the United States that stopped all exports of beef products while negotiations to reopen the market were conducted. A beneficial agreement to open the market to U.S. beef and variety meats resulted in a 437 percent increase in exports by volume in the first seven months of 2004.

Continued exports of top quality U.S. bovine hides and skins to China help Colorado companies. Using USDA's market development programs, U.S. skins have grown 354 percent from calendar year 1999 to 2003, reaching $409 million. Exports for the first seven months of 2004 continue the trend, which now stand at $282 million, 27 percent ahead of last year’s pace.