Market Share In Processed Food Markets Declines
AMES, lowa According to a
report just released, the United
Slates has been consistently losing
market share in international mar
kets for processed food products.
To many, this indicates that the
international competitiveness of
the U.S. Food processing industry
is eroding.
The report was released by the
Lehigh Livestock Sale Held
(Continue .l from Pago D 5)
pion Lightweight; 2. Steven Denial ■ • New
Tripoli; 3. Shannon Wetzel • Kampton.
Heavy Lightweight (230437 Ifaa.): 1. Re
lend Hottenilein 111 - Kutztown - Champion
Lightweight; 2. KaNy Lazarua • GarmanevWa;
3. Grant A. Lazarus 111 - Germantvllle.
>, right, _jyt». Moyer> ..id Son,
Inc., Souderton, represented by Donna RabenoM, left, Al
lentown and Tim RabenoM, center, Adametown.
Council tor Agricultural Science
and Technology (CAST), a lead
ing consortium of mote than 30
professional scientific societies.
Dr. Maury Bredahl, director of
the Center for International Trade
Expansion at the University of
Missouri and chair of the CAST
task force report “Competitive
ness of U.S. Agriculture and the
Light Madhanwolghl (241-245 Die.): 1.
George P. BiKig - New Tripoli - Reserve
Grand .Champion a Reserve Champion
Mediumwaight: 2. Staoey Dietrich • Qar
manaviHa; 3. Amy Wshr - Oraliald.
HadUim Madhimwaighl (244-250 Iba.):
1. Stacey Dietrich - Garmansvita • Grand
Champion a Champion Mediumwaight; 2.
Diversey Corp • Food Group - AG Division • 12025 Tech Center Dr • Livonia MI • 48150 • 1 800 521 8140
Balance of Payments,” explains
why increasing exports of pro
cessed food products is so import
, ant
“lf commodities are processed
in the United States, business acti
vity increases here, employment
and personal income rises, die tax
base broadens, and the balance of
trade improves. On the other hand.
George P. BiHg - New Tripoli; 3. Kelly Lazar
ua - Germantvllle.
Heavy Mediumwaight (252-255 Iba.): 1.
Jason Witter - New Tripoli; 2. Calvin H. La
zarue IN • Qormantvllle; 3. Amy Wehr - Ora
flald.
Light Heavyweight (2CO-252 lb*.): 1.
Corey S. Boger - New Tripoli • Champion
Heavyweight; 2. John C. Strawbridge •
WhiMhall; 3. Etaabetti Wlear - New Tripoli.
Methim Heavywaighl (M3-2M Hw.): 1.
Justin Wlaaer-Now Tripoli; 2. JaaonWlaaer-
New Tripoli; 3. John C. Strawbridge - White
hall.
Heavy Heavyweight (270-27* Iba.): 1.
Elizabeth WiMar • Naw Tripoli - Raaarva
Champion Heavyweight; 2. Grant A. Lazarua
111 - GormansvWa; 9. Juatin Wiaiar - Naw Tri
poli.
LAMBS
Marital Lamba:
Lightweight (95-109 Iba.): 1. Tim Raban
old - Allan town; 2. Amy Wehr - OraliaM; 3.
Samantha Craaalay - Fogalaville.
Madlumvralght (122-129 Iba.); 1. John C.
Strawbridga • Whitahall • Champion; 2. Laura
Sagan - Allentown - Raaarva Champion; 3.
Adam RabanoM - Allentown.
Haavywalghl (143 Iba.): 1. Grant A. La
zarua 111 - Ganhanaville.
Lightweight Pali* of Lamba: 1. Amy
Wahr - Orafiald: 2. Jama* Reinart - Oaliald:
3. John Ralnart - Oral Md.
Haavywalghl Pali* af Lamba: 1. Adam
Rabenold - Allantown - Champion Pair; 2.
Tim RabanoM - Allantown - Raiwrva Cham
pion Pair.
KEF
Lightweight Claaa (1157-1298 Iba.): 1.
Elizabeth VWaaar - Naw Tripod • Raaarva
Champion; 2. Jaion Wlaaar - Naw Tripoli; 3.
Juatin Wlaaor - Naw Tripoli.
Heavyweight Claaa (1309-1329 Iba.); 1.
Cryalal Watzal - Hampton - Champion: 2.
Shannon Watzal - Hampton; 3. Kevin Smith •
Garmanavilla.
if foreign countries process U.S.
commodities, these benefits are
realized abroad.”
According to author Philip C.
Abbott, professor of agricultural
economics at Purdue University,
“Agricultural export earnings this
year are at record levels. But gains
are largely due to commodity
price increases following bad
weather globally and increased
foreign demand. Exports of high
value and processed food products
are also increasing but more slow
ly than in competing countries."
The authors report that the unit
value, or average price, of exports
from the United States was below
that of exports from countries like
France and The Netherlands,
which are the world’s largest ex-
porters of processed food prod
ucts. Although the percentage has
declined recently, about half of
U.S. exports still consist of low
value-added commodities.
The CAST study identifies
several determinants of the com
petitive position of the United
States in international food mar
kets. Several economy-wide fac
tors, exchange and interest rates,
and growth in productivity and ef
ficiency have important effects.
But competitiveness factors im
portant in international commodi
ty markets are different from the
factors important in international
processed food markets.
Natural resources such as fertile
soils, favorable climate, and cost
reducing technologies are crucial
for competitiveness in internation
al commodity markets. Product
characteristics, quality enhancing
technologies, product innovations,
regulatory environment, and trade
policies play mote important roles
in the processed food markets.
And often food processors require
that characteristics desired in the
final product be imparted at the
farm.
According to University of
Kentucky agricultural economics
professor Dr. Michael Reed, one
of the report’s authors. “The U.S.
agricultural industry needs to do a
better job of assessing internation
al needs for specific food products
if it wants to be more competi
tive.”
The authors point to a need
among Land Grant universities
and experiment stations to link re-
search priorities with
economic payoffs to the
entire food system, in
cluding processing.
Firms are seeking tech
nologies for delivering
products at a time and
place and in a form de
manded by foreign con
sumers. Experiment sta
tions must choose be
tween downsizing and
increasing collaboration
on research with a pay
off to individual firms.
The report notes that
research and govern
ment policies should
help small and mid
sized firms because
they are especially like
ly to access foreign
markets through ex
ports. Large U.S. food
multinationals are more
likely to access foreign
markets through sub
sidiaries than by export
ing from their U.S.
operations.
Export subsidies on
agricultural commodi
ties are of limited bene
fit to farmers and ex
praters. Benefits are ex
ceeded greatly by costs
to taxpayers and costs
to consumers and pro
cessors through higher
prices, and often are
distributed unequally.
The tendency of farm
ers and food processors
to produce for govern
ment programs decreas
es the competitiveness
of the U.S. food system
at home and abroad.
Public resources are
better aimed at improv
ing the information in
frastructure and re
search base used by ex
porting firms and
agriculture.