ERS Charts of Note
Wednesday, October 14, 2020
Brazil has emerged as a major competitor for the United States in global agricultural markets, and is now the world’s third largest exporter of agricultural products behind the European Union (EU) and the United States. Brazil’s macroeconomic policies—currency devaluation, in particular—have played an important role in its position as one of the top exporters of agricultural products, including soybeans, corn, cotton, sugar, coffee, orange juice, and meat. Because exported Brazilian commodities are priced in dollars, depreciation of Brazil’s local currency, the real (BRL), has meant that Brazilian farmers have received more BRL for each dollar of export revenues. Export sales therefore have become more profitable, thus encouraging expansion of cropland and adoption of techniques to increase productivity. Brazilian agricultural production and exports, which are poised to continue flourishing over the next decade, according to the USDA Agricultural Projections to 2029 report, could grow even faster under accelerated currency depreciation. Simulations show that if the BRL weakens more than previously expected, exports of major commodities could be an aggregate 5.6 percent greater than previously projected, with Brazil’s exports increasing for each major commodity except beef and soybean meal. This chart is drawn from Economic Research Service (ERS) report, Brazil’s Agricultural Competitiveness: Recent Growth and Future Impacts Under Currency Depreciation and Changing Macroeconomic Conditions, and was highlighted in the ERS October issue of Amber Waves, in the feature article, “Brazil’s Currency Depreciation and Changing Macroeconomic Conditions Determine Agricultural Competitiveness and Future Growth.”
Monday, March 9, 2020
Sugar production in the United States and globally is dependent upon two crops: sugarbeets, grown in higher, typically colder latitudes; and sugarcane, which grows in lower, typically more tropical latitudes. Poor weather conditions have diminished the production outlook for both the U.S. sugarbeet crop—particularly in North Dakota, Minnesota, and Montana—and the sugarcane crop, especially in Louisiana. Sugar output is also expected to be significantly lower for 2019/20 in Mexico—the United States’ largest foreign sugar supplier—as drought conditions in several key sugarcane-producing regions are expected to reduce output considerably. The combined 2019/20 U.S. and Mexican sugar production is projected to be 9.7 percent below that in 2018/19, the lowest collective output since 2011/12. The reduced supply expectations are the main reason why the U.S. sugar market is forecast to be at its tightest since 2010/11, and why current U.S. wholesale refined sugar prices are 19 percent higher for cane sugar and 26 percent higher for beet sugar compared with a year ago. This chart is based on information in the Economic Research Service Sugar and Sweeteners Monthly Outlook Report and the Sugar and Sweetener Yearbook Tables.
Monday, January 27, 2020
For 2019, increased imports are expected in many non-cotton-producing countries, as well as some producing ones. Although China—a major producer—is projected as the leading importer in 2019, its upcoming imports are expected to be below those from a year ago, as cotton mill use in China is forecast to decline for the second consecutive year. In contrast, all other major importers are anticipated to secure additional imports this year. For Bangladesh and Vietnam, higher cotton imports are seen as supporting the recent textile and apparel industry expansion. At the same time, a 3-decade-low production forecast for Pakistan in 2019 is expected to result in record-high cotton imports to help sustain its spinning industry. Meanwhile, higher imports are also forecast for Turkey and others in 2019. In fact, global cotton imports are forecast by the U.S. Department of Agriculture to rise for the fourth consecutive year in 2019 to 43.8 million bales, nearly 4 percent (1.6 million bales) above last year’s volume. The growing trend is significant for the United States, as more than 80 percent of U.S. cotton production is exported to numerous countries around the world, with the U.S. share of 2019 global trade forecast at 38 percent. The 2019 global import forecast would be its highest since 2012’s record of 47.6 million bales. This chart is based on data in the ERS Cotton and Wool Outlook Tables, released in January 2020.
Wednesday, March 15, 2017
Former Soviet Union countries, Russia, Ukraine, and Kazakhstan experienced significant contractions in meat production in the 1990s and early 2000s. This trend reversed since 2005, with meat production over 70 percent greater in 2011-15 than the low point in 2001-05. The move from a centrally planned to a market based economy in the 1990s upended the growth of the livestock sector. Because of severe financial constraints, the large budget subsidies to agriculture—and especially the previously favored livestock sector—were mostly terminated, which led to reduced production. Aided by renewed subsidies and other policies beneficial to the industry, the livestock sector in these countries rebounded. From 2000 to 2015, average annual meat production rose in Kazakhstan (39 percent), Russia (116 percent), and Ukraine (50 percent). This chart appears in the ERS report Changing Crop Area in the Former Soviet Union Region released in February 2017.
Tuesday, July 26, 2016
The 2016 U.S. cotton crop is expected to reach 15.8 million bales (1 bale = 480 pounds), 23 percent larger than the 2015 crop, reflecting a 17-percent increase in acreage, lower abandonment and higher yields compared to last year. Globally, cotton production is projected to reach 102.5 million bales in 2016, up 5 percent from last year. Global cotton production is concentrated among a small number of countries, with India and China accounting for nearly half of world production and the top five producers expected to supply 77 percent of the world’s cotton this year. Production in most countries is expected to increase at least modestly this year, with the exception of China, where production is expected to fall 4.5 percent to 21.4 million bales as acreage there falls to historically low levels. Given the large increase in U.S. production, the U.S. share of global supply is expected to increase from 13.2 percent in 2015 to 15.4 percent in 2016, compared to a 27-percent share supplied by India and 21 percent by China. This chart is from the ERS report Cotton and Wool Outlook report, July 2016.
Monday, June 27, 2016
Since the late 2000s, India’s exports of beef—specifically water buffalo meat, also known as carabeef—have expanded rapidly, with India moving just ahead of Brazil to become the world’s largest exporter in 2014. India’s beef exports during the period have grown at an annual rate of about 12 percent, rising from an average volume of 0.31 million metric tons during 1999-2001 to an estimated 1.95 million during 2013-15. India’s robust export growth contributed to the expansion of world beef trade during this period and also increased the country’s share of the volume of shipments by major world beef exporters from just 5 percent during 1999-2001 to about 20 percent during 2013-15. The U.S. market share fluctuated during this period but declined from an average of 18 percent during 1999-2001 to 12 percent during 2013-15. This chart is from the ERS report, From Where the Buffalo Roam: India’s Beef Exports, released June 22, 2016.
Tuesday, February 23, 2016
Domestic deliveries of sugar and high-fructose corn syrup in Mexico—a useful indicator of human consumption—rebounded in the most recent marketing year (October/September) after declining about 6.5 percent the previous year. In January 2014, Mexico imposed a tax of one peso per liter on soft drinks in an effort to curb obesity by reducing consumption, and this is believed to be at least partially behind the reduction in sweetener deliveries observed during the 2013/14 marketing year. From October 2014 through September 2015, sweetener use by Mexican food processors returned to levels equivalent to just before the tax was imposed. Food consumption patterns change slowly and reflect many factors, so time and additional research is needed to fully understand the effect of Mexico’s soft-drink tax. This chart is based on the February 2016 Sugar and Sweeteners Outlook.
Monday, February 22, 2016
China’s livestock industry has expanded rapidly in recent years as diets shift toward more animal proteins. China is now the world’s largest producer of livestock products and the largest manufacturer of animal feed. Commercial feed production grew from just 5 million metric tons (mmt) in 1982 to 198 mmt in 2014. The industry’s growth paralleled that of meat and egg production, which grew from about 15 mmt annually in the early 1980s to 114 mmt in 2014. China’s surge in feed output for swine after 2007 reflects the Government’s emphasis on modernizing hog production and the substitution of commercial feed for locally procured materials. Feed produced for poultry grew steadily from 1990 to 2012 as feed companies promoted vertical coordination in poultry production beginning in the 1990s. Feed production for egg-laying poultry, aquaculture, cattle, and sheep also grew rapidly during 2004-2012. The growth of China’s commercial feed industry has increased its need for imported feed ingredients, making it a leading market for U.S. soybeans, sorghum, barley, and other commodities. This chart is from Development of China’s Feed Industry and Demand for Imported Commodities.
Tuesday, January 5, 2016
After nearly four decades of transitioning from a largely plant-based diet toward greater meat consumption, China is now the world’s largest producer of livestock products and has also emerged as the largest manufacturer of animal feed. This industry’s need for a reliable supply of feed ingredients has led to a reduction of China’s import barriers for many agricultural commodities and to China’s emergence as the world’s largest importer of soybeans and a growing market for imported distillers dried grains, sorghum and barley. The need for corn is still met largely through domestic production, but China became a net corn importer in 2009. The continued growth of the feed industry and demand for feed ingredients could further curb the use of trade barriers that protect Chinese grain and oilseed producers. As advocates for lower import barriers, Chinese feed companies help to forge closer integration between China’s agricultural markets and global markets. This chart is from Development of China’s Feed Industry and Demand for Imported Commodities.
Wednesday, December 30, 2015
As China enters a new phase of its economic development, its demand for higher-valued products like meat and dairy products is growing rapidly. China’s imports of meats during 2013-14 were more than double the volume imported during the early 2000s. Growing demand and higher prices of domestic meat products have driven the growth in China’s meat imports over the past few years. China’s meat imports have shifted from items like chicken feet and animal offal to muscle meat, as living standards rose and China opened its market to more beef and mutton imports. The U.S. is currently the top supplier of China’s poultry and pork imports. U.S. exports of meat, dairy products, and other consumer-oriented products, such as fruits, nuts, and wine to China rose from $234 million in 2000 to $3 billion in 2013, comprising nearly 12 percent of the value of total U.S. agricultural exports to China that year. The growth in China’s meat imports could mean new opportunities for U.S. exporters. This chart is based on the ERS report, China’s Growing Demand for Agricultural Imports.
Wednesday, December 16, 2015
India’s economic growth and rising incomes have expanded consumer food demand to include higher valued foods, such as fruit, vegetables, and some meat products. Indian farmers appear to be meeting these new growth opportunities. A look at average production shares in the 1980-84 and the 2004-08 periods shows that growth in production of animal and horticulture products reduced the share of production growth attributable to grains. Accordingly, India’s real value of farm production increased an average 3 percent each year, rising from 2.6 trillion rupees in 1980 to 7.3 trillion rupees in 2008, or from $42 billion to $116 billion. This chart is based on Propellers of Agricultural Productivity in India, December 2015.
Tuesday, December 1, 2015
Dietary changes in China have led to profound changes in its markets for agricultural products. China is now the world’s largest producer of livestock products as well as the largest manufacturer of animal feed. Commercial feed includes a variety of raw materials that can be altered depending on market conditions, but the predominant ingredients in China are corn and soybean meal. China is the world’s largest importer of soybeans, but the Chinese Government’s long-standing goal of self-sufficiency in grains has led to several policies aimed at supporting and expanding domestic corn production, resulting in China’s corn output doubling from 2000 to 2013. Corn output has surpassed that of wheat and rice, and became the country’s leading crop in 2012. In contrast, China’s domestic soybean output was relatively flat throughout this period and declined to under 12 million metric tons in 2013. While import restrictions and price supports succeeded in expanding corn production, those policies also led to large corn surpluses held in government stocks at prices well above world prices. This chart is from Development of China’s Feed Industry and Demand for Imported Commodities, November 19, 2015.
Friday, October 16, 2015
The average annual rate of global agricultural output growth slowed in the 1970s and 1980s, then accelerated in the 1990s and 2000s. In the latest period estimated (2001-12), global output of total crop and livestock commodities was expanding at an average rate of 2.5 percent per year. In the decades prior to 1990, most output growth came about from intensification of input use (i.e., using more labor, capital, and material inputs per acre of agricultural land). Bringing new land into agriculture production and extending irrigation to existing agricultural land were also important sources of growth. This changed over the last two decades, as input growth slowed. In 2001-12, improvements in productivity—getting more output from existing resources—accounted for about two-thirds of the total growth in agricultural output worldwide, reflecting the use of new technology and changes in management practices by agricultural producers around the world. This chart is based on the ERS data product, International Agricultural Productivity, updated October 2015.
Friday, October 9, 2015
Since 2009, India’s exports of beef—specifically water buffalo meat, also known as carabeef—have expanded, with India moving ahead of Brazil to become the world’s largest beef exporter in 2014. India’s beef exports grew about 14 percent annually between 2000 and 2015, and are expected to lead major exporters with about 6 percent annual growth during 2015-2025. India’s exports of relatively low-cost beef (primarily to low- and middle-income markets in Southeast Asia and the Middle East) reached a 24 percent global market share in 2015, and that share is projected to increase to 32 percent by 2025. The U.S. share of the global beef market has fluctuated, but averaged 12 percent during 2013-2015, and is projected to rise to 15 percent in 2025. This chart is based on data and analysis from USDA Agricultural Projections to 2024.
Monday, August 10, 2015
Agricultural total factor productivity (TFP) is the difference between the aggregate total output of crop/livestock commodities and the combined use of land, labor, capital and material inputs employed in farm production. Growth in TFP implies that the adoption of new technology or improved management of farm resources is increasing average productivity or efficiency of input use. Worldwide, agricultural TFP grew at an average annual rate of 1.7 percent during of 2002-11, the latest decade for which figures are available. However, not all countries are achieving growth in agricultural TFP. Among developing countries, some large countries like China and Brazil are improving their agricultural TFP rapidly, but many countries in Sub-Saharan Africa are lagging behind. Most developed countries are continuing to achieve moderate rates of agricultural TFP growth, but some, such as the UK and Australia, have experienced a slowdown in TFP growth. Maintaining growth in agricultural TFP is necessary for achieving global food security goals and could help preserve natural resources. This map is based on data from ERS’ International Agricultural Productivity accounts.
Friday, July 31, 2015
Cotton production is concentrated among only a few countries, with the world’s five largest cotton-producing countries forecast to produce nearly 80% of world production in 2015/16. India and China together account for more than 50 percent of global cotton production, but production in China is declining while increasing in India. In 2015/16, India is expected to surpass China as the world’s largest cotton producer for the first time on record, with a crop forecast at 29.5 million bales, pushing India’s share of world production to 26.5 percent. For China, 2015/16 production is forecast to decrease 10 percent (3 million bales) to 27 million bales, the lowest since 2003/04. China’s share of global production is forecast at 24 percent as area continues to trend lower. The difference in the production outlook for China and India can be traced in part to China’s rising wages and increasing production costs, while new technology and production practices have driven India’s yields and output significantly higher in recent years. Its output surpassed the United States for the first time in 2006 and is now poised to surpass China, which had been the world’s largest cotton producer since 1982. This chart is from July 2015 Cotton and Wool Outlook report.
Tuesday, June 30, 2015
Global cotton stocks have risen over the last several years, largely the result of growth in China’s stocks. Government policies in China supported national reserve purchases of domestic cotton and, at the same time, significant imports of raw cotton. These policies strengthened global cotton prices by keeping China’s supplies out of the marketplace while also encouraging production in other countries. Stocks in China at the end of 2014/15 (August/July marketing year) are estimated at a record 65.6 million bales, or 60 percent of global stocks. For 2015/16, policy adjustments in China are expected to reduce stocks slightly to 62.6 million bales, with its share of world stocks remaining unchanged. Globally, cotton stocks are expected to decline in 2015/16 for the first time in 6 years, but would still remain more than double the level in 2010/11, resulting result in only a slight decrease in the world stocks-to-use ratio. As a result, the 2015/16 world cotton price is expected to remain near the current season’s average of about 71 cents per pound, the lowest in 6 years. This chart is from the June 2015 Cotton and Wool Outlook.
Friday, May 8, 2015
China has been the world’s largest cotton producer and consumer of cotton for decades, and it became the largest importer shortly after its 2001 accession to the World Trade Organization (WTO). Economic growth has transformed its agriculture sector, driving wages higher and spurring greater mechanization in many areas; however, small scale cotton production persists with limited mechanization and high production costs, especially in eastern China. To support its farmers, China introduced a support price for cotton in 2011, and from 2011 to 2013 acquired more than 40 percent of China’s cotton crop in an attempt to maintain domestic cotton prices 50-60 percent above world prices. This has resulted in China’s government owning a large amount of cotton stocks, equivalent to nearly 200 percent of its annual use and half of the world’s consumption. New policies in 2014 included a shift from stock acquisition toward target-price based direct subsidies and a sharp reduction in cotton import quotas. Reduced purchases by China’s government and a transition of cotton stockpiles toward long run historic levels could result in years of lower imports, and a decline in world prices. This chart is based on Cotton Policy in China, CWS-15c-01, March 2015.
Tuesday, May 5, 2015
Intraregional agricultural trade among the United States, Canada, and Mexico has grown since the implementation of the North American Free Trade Agreement (NAFTA) in 1994. In 2011-13, agricultural imports from NAFTA partners accounted for 80 percent of Mexico’s total agricultural imports, 63 percent of Canada’s imports, and nearly 40 percent of all U.S. agricultural imports. Roughly two-thirds of U.S. agricultural imports from Mexico consist of beer, vegetables, and fruit. These imports are closely tied to Mexico's historical expertise in producing alcoholic beverages and a wide range of fruit and vegetables, along with favorable climates with growing seasons that largely complement those of the United States. Meat, grains, vegetables, fruit, and related products make up roughly 60 percent of U.S. agricultural imports from Canada, while grains, fruit, vegetables, meat, and related products accounted for about 61 percent of U.S. agricultural exports to Canada. Grains, oilseeds, meat, and related products make up about three-fourths of U.S. agricultural exports to Mexico. This chart is based on data found in NAFTA at 20: North America’s Free-Trade Area and Its Impact on Agriculture, February 2015.
Friday, April 17, 2015
Global ending stocks of most agricultural commodities, including feedgrains, oilseeds, wheat, and cotton are expected to reach multi-year highs in 2015. Ample supplies are reflected in prices that are well below the record levels of just a few years ago. Rice is an exception, with global ending stocks projected to decline for the second year in a row to reach their lowest level since the 2009/10 marketing year (August/July). At the same time, global use continues to grow, led by consumption growth in China, India, Bangladesh, the Philippines, and several other nations. As a result, the global stocks-to-use ratio is projected at just over 20 percent, the lowest it has been since 2007/08, a time when international concern over high commodity and food prices led several of the world’s leading rice producing and consuming countries to restrict exports and increase government-owned rice reserves. These actions resulted in a rapid rise in global rice prices and reduced trade. Today, even though global stocks are approaching levels that prompted substantial trade restrictions in early 2008, prices are lower and global rice trade remains at near-record levels. This chart is from the April 2015 Rice Outlook.