1. Opportunities for Michigan Agricultural Exports Titus Awokuse Department of Agricultural, Food and Resource Economics Michigan State University
Presentation at Global Business Club of Mid-Michigan, February 16, 2017

2. Pop Quiz: Question
What percent of US overall economy (GDP) is due to international trade (exports and imports)?
A) 6 percent
B) 13 percent
C) 21 percent

3. Pop Quiz: Answer
What percent of US overall economy (GDP) is due to international trade (exports and imports)?
A) 6 percent
B) 13 percent
C) 21 percent
Big picture:
30 percent globally (2015)

4. Importance of Global Trade
Exports is very important for US producers
Imports benefits both US producers and consumers
Exports is a major driver of US economic growth

5. US Major Trade Partners
Mixture of developed and emerging economies
Top 3 US largest export markets:
Mexico, Canada & China

6. Trends in Exports: US versus Michigan
Michigan exports mirrors US performance
Most recent decline in real exports began in 2014
50% of Michigan exports in transportation equipment - auto
Significant decline of $3.2 billion in auto exports from 2013 to 2014

7. Rising Trade Deficits: Major Partners

8. Trade Deficit: Ag/Food is bright spot
US Ag/Food exports: $129 billion in 2016
more than 20 percent of all the food grown in the US
Ag/Food export volume more than double in past decade

9. Recent Trends in Agricultural Trade
Midwest region: 13% of all exports in 2015 were in food and agricultural products (8.4% for the rest of US )
Prior to 2014, US food and agricultural products exports had been growing rapidly
Mostly due to large demand from Asian markets
Michigan: $3.18 billion in ag/food exports in 2014
Mostly to Asian (China, Japan, S Korea) and NAFTA (Canada, Mexico) countries
Decline in food exports in
Stronger US dollar and slow down in global economy
Lower ag income and profitability  less employment

10. Ag/Food Exports Opportunities: WHERE
Ag/Food Exports Opportunities: WHERE? Trade Volume: Annual % Change,

11. Ag/Food Exports Opportunities: WHERE?
Mostly in emerging and developing economies
China, India, Argentina, Brazil Chile, Peru, etc.
There are still opportunities for exports growth due to:
Huge market size and shifting food consumption patterns
Growing middle class and purchasing power
Lesser known countries have upside for importing US food products 

12. Ag/Food Exports Opportunities: WHAT?
Processed food products
Dairy products
Fresh fruits and nuts

13. Michigan Ag-Food Exports Growth: Key Challenges
Timely knowledge of prevailing market conditions and policies in foreign markets
US trade policy changes & potential for trade wars
Uncertainties with global markets and macroeconomic changes
Other?
Open Forum: Questions?