WASHINGTON – According to the Economic Research Service and Foreign Agriculture Service of the US Dept. of Agriculture, the United States is forecasted for $125 billion of agricultural exports for the 2016 fiscal year. That is $6.5 billion behind the November projection and $14.7 billion behind the 2015 fiscal year.
US agricultural imports look to be forecasted at a record $118.5 billion, down $2.5 billion from November but $4.5 billion more than last fiscal year.
The report said that lower prices, strong competition and reduced demand account for most of the decline.
The forecast for livestock, poultry and dairy exports was lowered $2.5 billion from the previous forecast of $25.7 billion due to overall lower prices across these industries. Import numbers also fell $3.7 billion from 2015 to $15.8 billion.
Beef export projections declined $200 million to $5.4 billion as lower unit values offset higher volumes.
Since there are weak demands and lower unit values, poultry also decreased $400 million to $4.8 billion. Pork took the smallest hit with a forecast of $100 million lower to $4.3 billion.
Dairy fell sharply in its projections as well, decreasing$700 million to $4.9 billion total. The reasons listed were weak import demand, low prices and strong competition from the European Union.
Beef imports are expected to be $2.2 billion lowered to $5 billion, accounting for the majority of the decline. Live cattle imports are also expected to decline by a billion dollars to $1.7 billion because cattle supplies reach a low point. However, recovery in 2016 should reduce demand for imported cattle from Mexico and Canada.
To read the full report click on the link here.