5 Benefits of Exporting Food Products to Other Countries
Exporting food products is a great way to expand your business and reach new customers around the world. Food exports can also help you diversify your income, reduce your risk, increase your competitiveness, and contribute to the global food security. Here are some of the benefits of exporting food products to other countries:
1. Increased Sales
Exporting food products can help you increase your sales potential by tapping into new markets with high demand and purchasing power. According to Food Export Association of the Midwest USA, exports of consumer food products are growing 3x faster than sales in the U.S., and have grown 10% between 2016 and 2019 . By exporting, you can also benefit from economies of scale, lower per-unit costs, and higher profit margins.
2. Reduced Risk
Exporting food products can help you reduce your risk by diversifying your customer base and income sources. By selling to different countries, you can mitigate the impact of domestic market fluctuations, seasonal variations, and economic downturns. You can also take advantage of trade agreements that lower trade barriers and provide preferential access to certain markets .
3. Increased Competitiveness
Exporting food products can help you increase your competitiveness by exposing you to new challenges, opportunities, and best practices. By exporting, you can learn from other countries’ consumer preferences, quality standards, regulations, and innovations. You can also improve your product quality, efficiency, and customer service by meeting the expectations of foreign buyers.
4. Contribution to Global Food Security
Exporting food products can help you contribute to the global food security by increasing the availability and affordability of food for consumers around the world. By exporting, you can help meet the growing demand for food in developing countries, where population growth, urbanization, and income growth are driving food consumption . You can also help reduce food waste by utilizing surplus production and extending shelf life .
5. Export Assistance
Exporting food products can be easier than you think with the help of export assistance programs and services. There are many organizations that can provide you with export education, market entry, market promotion, and export certification support . You can also access online resources, such as market research reports, trade data, trade leads, and webinars, to help you plan and execute your export strategy.
Exporting Food: A Global Perspective
Food is one of the most traded commodities in the world, with a total value of $1.314 trillion in 2020 . The demand for food products varies across regions and countries, depending on factors such as population, income, preferences, climate, and policies. In this post, we will look at some statistics and trends of food exports from different perspectives.
Top Food Exporters and Importers
The United States was the largest food exporter in 2020, with a value of $177 billion, an 18 percent increase from 2019 . The main products exported by the United States were grains and feeds, soybeans, livestock products, tree nuts, fruits, vegetables, and other horticultural products. China was the largest market for U.S. food exports, followed by Canada and Mexico.
The European Union was the second largest food exporter in 2020, with a value of $164 billion, a 7 percent increase from 2019 . The main products exported by the European Union were cereals and preparations, dairy products, meat and meat preparations, wine and spirits, and sugar and confectionery. The United States was the largest market for EU food exports, followed by China and Switzerland.
Other major food exporters in 2020 were Brazil ($83 billion), China ($76 billion), Canada ($56 billion), India ($38 billion), and Thailand ($35 billion) .
The European Union was also the largest food importer in 2020, with a value of $163 billion, a 4 percent increase from 2019 . The main products imported by the European Union were fruit and vegetables, coffee and tea, oilseeds and oils, fish and seafood, and meat and meat preparations. Brazil was the largest supplier of food to the EU, followed by the United States and China.
Other major food importers in 2020 were China ($133 billion), the United States ($131 billion), Japan ($64 billion), India ($48 billion), and Saudi Arabia ($34 billion) .
Top Food Products Traded
Fruit and vegetables were the most traded food products in 2020, accounting for 22 percent of the total value of food exports (excluding fish) . The main exporters of fruit and vegetables were Mexico ($19 billion), Spain ($18 billion), the Netherlands ($17 billion), China ($16 billion), and the United States ($15 billion). The main importers of fruit and vegetables were the United States ($34 billion), Germany ($20 billion), China ($19 billion), France ($15 billion), and the United Kingdom ($14 billion).
Cereals and preparations were the second most traded food products in 2020, accounting for 16 percent of the total value of food exports (excluding fish) . The main exporters of cereals and preparations were the United States ($32 billion), Russia ($25 billion), Canada ($21 billion), France ($17 billion), and Argentina ($14 billion). The main importers of cereals and preparations were China ($24 billion), Egypt ($10 billion), Japan ($9 billion), Mexico ($8 billion), and Indonesia ($8 billion).
Meat and meat preparations were the third most traded food products in 2020, accounting for 12 percent of the total value of food exports (excluding fish) . The main exporters of meat and meat preparations were Brazil ($20 billion), the United States ($18 billion), Germany ($14 billion), Netherlands ($13 billion), and Spain ($11 billion). The main importers of meat and meat preparations were China ($29 billion), Japan ($15 billion), Germany ($12 billion), South Korea ($10 billion), and Mexico ($9 billion).
Trends and Outlook
The global demand for food is expected to continue to grow in the coming years, driven by population growth, income growth, urbanization, dietary changes, and climate change. According to the Food and Agriculture Organization (FAO) of the United Nations, global food demand is projected to increase by 50 percent by 2050 compared to 2012 levels .
To meet this demand, food production will need to increase sustainably and efficiently, while reducing greenhouse gas emissions, water use, land use, waste, and losses. Trade will play a key role in ensuring food security and nutrition for all people, as well as fostering economic development and resilience.
However, trade also faces many challenges and uncertainties, such as trade barriers, market volatility, transport costs, infrastructure gaps, sanitary and phytosanitary measures, quality standards, consumer preferences, digitalization, innovation, competition, geopolitics, pandemics, conflicts, natural disasters, and climate change. These factors can affect both the supply and demand of food products, as well as the prices and trade flows.
Therefore, it is important to monitor and analyze the trends and developments of food exports and imports, as well as the policies and regulations that affect them. This can help to identify the opportunities and risks for food producers, traders, consumers, and policymakers, and to design and implement appropriate strategies and actions to enhance the benefits and mitigate the challenges of food trade.
References:
https://www.census.gov/foreign-trade/Press-Release/2020pr/ft900_2012.pdf
https://www.usda.gov/media/press-releases/2022/02/08/american-agricultural-exports-shattered-records-2021
https://www.ers.usda.gov/data-products/ag-and-food-statistics-charting-the-essentials/agricultural-trade/
https://www.fao.org/3/cb9928en/cb9928en.pdf
https://www.fas.usda.gov/data/us-processed-food-exports-growth-outlook
http://www.fao.org/3/a-i6583e.pdf
https://www.foodexport.org/export-insights/why-export/
https://www.fda.gov/food/food-imports-exports/exporting-food-products-united-states
https://greenglobalme.com/benefits-of-exporting-food-items/
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