FoodReview: Global Food Trade, Vol. 24, No. 3

Rosanna Mentzer Morrison, Economics Editor

FoodReview No. (24-3) December 2001

About this magazine

This issue of FoodReview presents a series of articles about international trade in food and food products. Two additional articles look at food supply nutrients and food marketing costs.

In this report ...

Articles are in Adobe Acrobat PDF format.

Contents, 42 kb

Upfront, 27 kb

Feature Articles

• Consumer Preferences and Concerns Shape Global Food Trade--Twenty years ago, bulk commodities accounted for most agricultural trade. In recent years, processed and semi-processed foods have jointly accounted for two-thirds of total agricultural trade. Despite trade growth in developing countries, the much larger volume of processed food trade among developed countries has primarily accounted for the shift in world agricultural trade from grains to high-value foods. Factors influencing changes in global food trade include rising per capita incomes that cause consumers to seek out high-value foods, growth in two-way trade and intra-industry trade, developments in transportation technology, and urbanization. (87 kb)

• Processed Food Trade Deficit Continues in 2000--U.S. processed food imports grew 5.9 percent in 2000 to a record high of $36.8 billion. In the same year, U.S. processed food exports grew 4.0 percent to $30 billion. The $6.8 billion trade deficit in 2000 marked the third consecutive year of progressively larger processed food trade deficits for the United States. In 2000, meatpacking retained its ranking as the top U.S. processed food export, growing 16.1 percent to $6.5 billion. Japan remained the top market for U.S. processed food exports. Fresh and frozen seafood repeated as the top U.S. processed food import in 2000, growing 10.5 percent to $7.8 billion. With a 23-percent share, Canada was the largest source of U.S. processed food imports in 2000. (76 kb)

• Imports' Share of U.S. Diet Rises in Late 1990s--Food imports account for a relatively small share of the total U.S. diet, but they grew considerably in importance during the late 1990s. ERS estimates that imports' share of the total quantity of food consumed domestically rose from an average of 7.5 percent for 1979-94 and 7.4 percent for 1995 to 9.1 percent for 1998 and 1999. A strong U.S. economy, lower import prices, and U.S. participation in trade agreements, among other factors, contributed to the increase in imports in the last half of the 1990s. High-value products, such as seafood, red meat, cheese, fruits and juices, vegetables, beer, and wine, were among the fastest-growing U.S. imports and each increased significantly since 1995. (90 kb)

• U.S. Food Companies Access Foreign Markets Through Investment--U.S. foreign direct investment (FDI) in foreign food processing companies grew from $9 billion in 1980 to $36 billion in 2000. Foreign food processing affiliates of U.S. companies generated $150 billion in sales in 2000, compared with $30 billion generated by U.S. processed food exports. The United Kingdom, Mexico, and Canada had the most sales from U.S. FDI in 2000. Following a high of $8 billion in 1996, foreign food company FDI in the U.S. processed food industry decreased to $1.5 billion in 2000. The largest foreign investments in U.S. companies were in grain and oilseed milling, dairy products, bakeries, tortilla-making plants, and beverages. (95 kb)

• U.S. Exports Face High Tariffs in Some Key Markets--From 1996 to 2000, U.S. food and agricultural exports averaged about $60.6 billion per year. Tariffs imposed on U.S. food and agricultural exports in foreign markets had a dampening effect on the volume and value of this trade. Measuring the trade-distorting effects of tariffs is complicated, as it is a function of numerous factors, including the manner in which producers and consumers respond to changes in relative prices. This article identifies major markets in which U.S. agricultural exports face high tariffs and takes various approaches to computing the average tariff faced by U.S. agricultural exports in these markets. (100 kb)

• Food Supply Nutrients and Dietary Guidance, 1970-99--In 1999, the available U.S. food supply contained more grain products, fruit, vegetables, and legumes, nuts, and soy products per capita than in 1970. Likewise, per capita amounts of most nutrients in the U.S. food supply increased during 1970-99. In 1999, the food supply provided 111 more grams of carbohydrates per capita per day than in 1970, although sugars and sweeteners provided almost 40 percent of the total amount. Per capita per day amounts of fiber increased 26 percent, protein increased 16 percent, and total fat increased 8 percent (although use of saturated fats decreased). In the same period, the food supply provided increased levels of iron, calcium, antioxidant vitamins, and B-vitamins (except B12). (87 kb)

• Food Marketing Costs at a Glance--In 2000, U.S. consumers spent $661.1 billion on food, excluding imports and seafood. Estimated marketing costs for domestic farm goods in 2000 totaled $537.8 billion, or 81 percent of consumer expenditures. From 1990 to 2000, consumer expenditures for farm goods rose $211.3 billion. In the same period, marketing costs rose 57 percent and accounted for most of the 47-percent rise in consumer spending. Labor used by manufacturers, wholesalers, retailers, and eating places totaled $253 billion in 2000 and accounted for nearly 40 percent of total consumer food expenditures. (59 kb)

Entire report, 384 kb

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Updated date: December 2001