WASHINGTON D.C. — The USDA is leading a trade mission this week to Sub-Saharan Africa to increase U.S. ag exports in the region, which is a growing market for U.S. table-ready food.
Demand for consumer-oriented products is "especially robust," with U.S. exports growing by almost 90 percent in the past five years, said USDA Deputy Secretary Krysta Harden. Consumer-oriented products include high-value foods and beverages that are ready for consumption. These exports grew from $480 million in 2010 to a record $909 million in 2014.
Last year, record levels of poultry meat, prepared foods, condiments and sauces, processed vegetables, wine and beer and tree nuts were exported to sub-Saharan Africa.
Leaders from five state departments of agriculture and 26 U.S. agribusinesses and organizations are accompanying Harden to develop export opportunities. States include Arkansas, Kansas, Nebraska, North Carolina and Texas.
Harden spoke via email with Farm World before leaving on the tour, a follow-up to a visit two years ago that launched USDA’s Sub-Saharan Africa Trade Initiative, which aims to expand U.S. agricultural and commercial ties in the region.
She said a wide array of U.S. food and ag products will be discussed as potential trade items. Ag products cover a broad range of goods from unprocessed bulk commodities such as soybeans, feed corn, wheat, rice and raw cotton to highly-processed, high-value foods and beverages like sausages, bakery goods, ice cream, beer and wine and condiments sold in retail stores and restaurants.
"With a strong economic outlook, a growing middle class and surging demand for consumer-oriented foods, sub-Saharan Africa is one of the fastest-growing regions for U.S. agricultural exports," Harden said. "Over the past decade, U.S. agricultural exports to this region increased by more than 50 percent, totaling $2.3 billion in 2014."
She said wheat is the dominant U.S. export to the region, with Nigeria being a top global market. The most exciting development, however, is in consumer-oriented products, a subset of ag products that includes meats, dairy, fruits and vegetables and beverages, she said.
The European Union (EU) is the leading supplier of consumer-oriented products to sub-Saharan Africa, with $6.5 billion in 2012, compared with less than $1 billion for the United States. But the U.S. is making gains. "U.S. shipments are growing at a faster rate. In fact, over the past five years, U.S. exports of consumer-oriented products increased at more than twice the rate of EU exports (135 percent vs. 64 percent)," Harden said.
The trade team will also be meeting with farmers in the area to discuss opportunities to export to the United States. The African Growth and Opportunity Act offers tangible incentives for African countries to continue their efforts to open their economies and build free markets.
"The goal of the visit in November is to meet with more women farmers to discuss how USDA can help them grow and thrive. During her visit two years ago, Deputy Secretary Harden met with many small, minority- and women-owned businesses and was truly inspired," said Rachael Dubinsky, a USDA spokesperson.
"One woman she met, Yetemwork Tilahun, is a small-scale dairy farmer near the town of Mojo, about 50 miles south of Addis Ababa. She saw firsthand how the Feed Enhancement for Ethiopian Development (FEED) project, an activity supported by USDA’s Food for Progress program, has boosted milk production through better feeding practices and farm management in the area," Dubinsky said.
The mission includes 22 U.S. companies and four U.S. agricultural commodity trade associations representing a variety of agricultural products including grains and feeds, peanuts, soybeans, meat and poultry products, agricultural machinery and more.
Harden noted that many of the participants are small- or medium-sized businesses owned by minorities and women. Participating commodities include the American Soybean Assoc.; USA Poultry & Egg Export Council; U.S. Meat Export Federation; and USA Rice Federation.
The delegation will meet with potential customers from more than a dozen countries across Sub-Saharan Africa, forging relationships and learning about the market conditions and business environment in the region. Harden said this firsthand intelligence will help U.S. companies develop strategies to start or expand sales to these key markets.
Top Sub-Saharan Africa markets for U.S. agricultural and related products last year included Nigeria ($847 million), Angola ($298 million) South Africa ($259 million), Ghana ($129 million), Kenya ($69 million) and Ethiopia ($83 million).
Those participating in this trade mission include the Food Export Assoc. of the Midwest USA in Springfield, Ill., and Zafi Beverages of Bensenville, Ill.
