Developing new markets for American agriculture

The long-term success of American agriculture depends on robust access to new and developing markets. As the breadbasket to the world, our farmers grow and raise far more product than we can consume and use here at home. Therefore, we must actively work to open new export markets for American agriculture and eliminate trade barriers – both tangible and intangible – that prevent our agricultural goods from reaching foreign markets.

It's no secret that the United States remains an agricultural powerhouse. We export everything from pork, beef, and poultry to corn, soybeans, and wheat – cementing our status as one of the top countries for agricultural production globally. However, in recent years, that esteemed status faces obstacles and challenges. In Fiscal Year 2022, our country exported nearly $196 billion worth of agricultural goods. That figure decreased to $184.5 billion in Fiscal Year 2023 and is projected to further fall to $170.5 billion this fiscal year. As a result, the United States will register a roughly $30-billion trade deficit, impacting producers and our global competitiveness in agricultural markets.

We also face another challenge as it pertains to export capacity. In 2021, the top three markets for American pork – China, Japan, and Mexico – accounted for 63% of U.S. exports. In that same year, the top three markets for beef – Japan, South Korea, and China – accounted for 60% of U.S. exports. These few examples underscore the need to maintain these trading partners, but also establish new markets to build a resilient supply chain for producers.

Ultimately, one of the largest barriers to growing export markets for U.S. food and agriculture products is insufficient cold chain capacity in developing countries. Each year, billions of tons of perishable food products and millions of dollars’ worth of U.S. exports are lost due to poor cold chain systems in developing markets – restricting our export opportunities and exacerbating world hunger. Without proper refrigeration infrastructure, perishable goods destined for foreign markets are more susceptible to spoiling before reaching the consumer. That outcome is bad for our producers, our economy, families in other countries, and global trade at large.

That’s why we’re working through the House Agriculture Committee to include the Fortifying Refrigeration Infrastructure and Developing Global Exports Act – or the FRIDGE Act for short – in the Farm Bill. This legislation would direct the U.S. Department of Agriculture to administer the delivery of needs assessments, training, and other technical assistance to enhance infrastructure capacity – including cold chain storage – in new and developing foreign markets. More specifically, the FRIDGE Act would add a section promoting infrastructure in the Foreign Market Development (FMD) program, and to fund this paragraph, funds will be authorized at $1,000,000 annually from Fiscal Year 2024 to Fiscal year 2028.

The power of this legislation is evident in a case study in the Philippines. In conjunction with the USDA, the Global Cold Chain Alliance spearheaded a cold-chain infrastructure project designed to increase exports to the island nation. The mission was a huge success. In 2002 – when the project was commissioned – U.S. exports of perishable goods to the Philippines clocked in at $114.1 million. Just ten years later, that number shot up to $654.5 million, and just ten years after that, exports of perishable American agricultural products reached nearly $1.3 billion. So, from 2002 to 2022, the value of U.S. perishable exports increased by a factor of eleven while the average increase worldwide only grew by a factor of 3.5 during that twenty-year period.

Developing new trading partners depends on reliable infrastructure, and the FRIDGE Act will help establish new export markets, especially for our hog, cattle, and poultry producers. Integrating into growing markets early is essential for solidifying long-term, sustainable, and profitable growth in our agricultural industry. Markets like those in Southeast Asia and Africa represent why this legislation is so vital – by helping gain a foothold for our producers we can effectively diversify our trading partners, lessen our reliance on China and a few other countries for most of our exports, and help solve the main hindrance in the way of U.S. entry into many markets worldwide – infrastructure.

By passing the FRIDGE Act and responsibly investing in cold-chain infrastructure, we are hopeful that the incredible success in the Philippines can be replicated around the globe. With greater and more consistent access to new and developing markets, our farmers can keep more money in their pockets, our economy will realize serious financial benefits, and American competitiveness in global agricultural trade will strengthen. This legislation is undoubtedly a win for our producers, our economy, and American trade expansion.

This op-ed was originally published in AgriPulse on March 26, 2024.