West Virginia produces agricultural products that are exported worldwide. In
2006, the State's total cash receipts from farming reached $451 million, and
exports were estimated at $42 million. These industries are important to West
Virginia's economy. Exports help boost farm prices and income, while supporting
jobs both on the farm and off the farm in food processing, storage, and
transportation.
West Virginia's top agricultural exports in 2006 were:
• poultry and products -- $21 million
• feed and fodders -- $7 million
• fruit and preparations -- $4 million
World demand for agricultural products is
increasing, but so is competition among suppliers. If West Virginia'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 West Virginia
Agriculture
West Virginia broiler industry accounts for
nearly 30 percent of the state’s farm cash receipts. West Virginia 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, which 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.
Export Success Stories
Over the past three years West Virginia food and
agricultural companies have participated in Southern United States Trade
Association’s (SUSTA) market development programs. Last year, four West Virginia
companies participated in a Caribbean buyers mission. Two West Virginia
companies participated in "Go South" promotions resulting in export sales of
over $10,000, and a small honey company exported over $75,000 in product as a
result of SUSTA's brand program.
A honey company from West Virginia nearly doubled
its overall export sales from 2000 to 2001 as a participant in SUSTA’s MAP
Branded program. The company boosted its global marketing efforts in 2001 using
MAP funding to promote honey and other condiments in Canada. For these products,
the company saw a 115 percent increase in export sales from 2000 to 2001. As a
result of their participation in the Branded program, the company’s overall
export sales skyrocketed from around $500,000 in 2000 to nearly $1 million in
2001.