California Ag Network

Tag: USDA Foreign Ag Service

  • Gearing Up to Celebrate International Year of the Woman Farmer

    USDA Foreign Ag Service — Did you know that women are responsible for roughly half of the world’s food production? The United Nations’ designation of 2026 as the International Year of the Woman Farmer gives the global community a chance to highlight that fact and celebrate the incredibly important role women play in ensuring global food security. At the same time, it’s an unprecedented opportunity to underscore – and to address – the myriad social and economic challenges that women in agriculture face worldwide.

    We’re so proud of USDA’s role in leading U.S. government efforts to introduce and generate support for the resolution, which was cosponsored by 123 other nations and passed by the UN General Assembly in May. This marked the first time in history that the United States was the lead sponsor of an “international year” at the UN, demonstrating just how important the role of women in agriculture is to our department, our nation and the world.

    USDA recently hosted a gathering of more than 200 partners and stakeholders on USDA’s Whitten Patio (along with another 800 who joined us online!) to celebrate the resolution’s passage and to begin networking and sharing ideas for how to make the 2026 observance of the International Year of the Woman Farmer a momentous and transformational one.

    In addition to the many female agricultural leaders in attendance, we were joined onstage by Oklahoma Secretary of Agriculture Blayne Arthur, who also serves as president of the National Association of State Departments of Agriculture, and Lauren Phillips, who serves as Deputy Director of Rural Transformation and Gender Equality at the UN Food and Agriculture Organization. We’re grateful to them for sharing their insights and experiences and we’re also grateful that U.S. Ambassador to the UN Linda Thomas Greenfield was able to join us via video to issue a call to action.

    “The International Year of the Women Farmer offers governments, civil society, the private sector and other stakeholders the opportunity to better understand the challenges women face, help close the gender gap and get us closer to achieving the UN Sustainable Development Goals,” Ambassador Thomas-Greenfield said. “Together, let’s amplify the voices of women farmers and better understand their financial and technological needs. Let’s ensure access to credit markets, education and technology and build strong networks for mentorship and knowledge exchange. Let’s support changes in social norms that empower women farmers and implement policies that give them access and control over their land.”

    We’re deeply grateful for the hard work women farmers do day in and day out to feed our nation and our world. As we continue along the road towards 2026, we encourage everyone to join our efforts to elevate and empower women in agriculture worldwide. You can learn more at www.usda.gov/iywf.

  • California Tree Nut Sector Well Positioned for Growth in Algerian Market

    USDA Foreign Ag Service — The exporter guide provides an economic and market overview, as well as demographic trends and practical tips for U.S. exporters on Algeria. The report provides an overview of the three market sectors – food retail, food service, and food processing in Algeria. Overall, of the total U.S. agricultural exports to Algeria, consumer-oriented products represent 15 percent of the total U.S. exports in 2023. Tree Nuts currently have the best prospects for U.S. consumer-oriented products exported to Algeria.

    Executive Summary: Algeria is a middle-income country and in 2022, its GDP reached almost $200 billion, positioning it as one of the largest economies on the African continent. Encompassing an area of 2,381,741 sq. km, Algeria is also the largest country in Africa by landmass. Algeria’s state-dominated economy is heavily dependent on oil and gas revenues, which historically have provided over 90 percent of export earnings and nearly 40 percent of state revenues. The agriculture sector is one of the priority sectors for the government in its efforts to diversify the economy and attract foreign and domestic investment outside the energy sector. The agriculture sector contributes on average 12percent of Algeria’s GDP and employs 20 percent of the population in rural areas. Algeria’s imports of agricultural commodities and food represented 25.29 percent ($9.9 billion) of total imports ($39.21 billion) in 2023.

    Food Retail Industry: Algeria’s food retail sector is estimated at $37.5 billion and is highly fragmented. Consumers shop for bulk, packaged and high value products, both local and imported, in small, privately owned supermarkets called “superettes”. Algeria’s largest private-sector conglomerate Cevital, operates 23 grocery stores under the brand name UNO. International retail chain Carrefour is also present.

    Food Processing Industry: The government divested itself from agricultural production and processing allowing the private sector to take the lead. The private sector is comprised of wheat and feed millers, dairy processors, vegetable oil refiners, sugar refiners, beverage producers as well as canners, and a pastry industry. The distribution and HRI sectors are growing however need further development.

    Food Service Industry: Revenue in the food market amounts to $17.4 bn in 2024. The market is expected to grow annually by almost 10 percent (CAGR 2024-2028). The largest segment is the Confectionery & Snacks with a market volume of US$2.8 bn in 2024. In the Food market, 0.9 percent of total revenue will be generated through online sales by 2024. In the food market, volume is expected to amount to 5.75 bn kg by 2028. The food market is expected to show a volume growth of two percent in 2025. The average volume per person in the food market is expected to amount to 115 kg in 2024.

    Section I: Market Overview

    Algeria is a middle-income country whose state-dominated economy is heavily dependent on oil and gas revenues, which historically have provided over 90 percent of export earnings and nearly 40 percent of state revenues. These revenues have funded a generous social safety net through food, fuel, housing, health, and education subsidies. The World Bank estimates that Algeria’s GDP grew 4.1 percent in 2023, though inflation reached over 9.3 percent. In 2024, the World Bank expects GDP growth to slow due to stagnant oil and agricultural output, before rebounding in 2025. The IMF estimates the national economy at around $200 billion.

    The government’s economic development plan centers on diversification away from the energy sector, with a particular focus on agriculture. Algeria leans on protectionist trade policies to encourage development of local industries and to control the current account deficit. The import substitution policies are often announced without warning, and tend to generate regulatory uncertainty, supply shortages, increased prices, and a limited selection for consumer goods. Nevertheless, food imports have been trending up sparked by growing consumer demand.

    Food accounts for just over 40 percent of Algerian household spending, and mainly concerns relatively unprocessed basic products. The government subsidies staples such as sugar, soybean oil, bread, semolina and pasteurized milk which encourages high consumption of these products. In Algeria, generally, the price determines the consumption. Purchases are often made from small retailers even though supermarkets and shopping centers are growing. Since the Covid-19 pandemic and the war in Ukraine, inflation and price increases have negatively impacted consumer confidence.

    Online commerce and restaurant take out is growing, especially since the Covid-19 pandemic, and consumers are increasingly attracted by easier and faster ways of buying. However, online payments are extremely limited; most consumers place the order online or via phone and pay in cash to the delivery driver. More than half of the population has internet and is active on social networks. However, purchasing decisions on networks are not as developed as in Europe or the United States. The Algerian diet is based on a Mediterranean model. Algerians are big consumers of cereals (durum wheat, semolina, bread, couscous, etc.), pulses (lentils, beans and chickpeas), fruit and vegetables, olive oil, with little meat, as well as products derived from milk, eggs, fish. Algerians have traditionally eaten lamb and poultry. In the south, camel meat is also consumed.

    While Algeria’s society remains dominated by traditional family institution, socioeconomic changes are driving noticeable shifts in consumers’ consumption preferences and the food retail landscape. The population has quadrupled in 60 years, reaching over 45 million inhabitants in 2023. As of 2022, Algeria’s urban population was estimated to be over 70 percent of the total population. Overall, the participation of Algerian women in the workforce is gradually increasing, driven by improvements in education, changes in societal attitudes, and supportive government policies. In the urban centers, the younger generation is increasingly following global trends seeking out fast food, chawarma, and snacks as well as sweetened drinks. In April 2024, a Lebanese group AZADEA opened the first KFC restaurant in the capital. Pizza Hut, Subway, Coca Cola, PepsiCo, Nestle, and Heineken are all present in Algeria.

    Advantages and Challenges

    Potential exists for U.S. exporters to obtain a share of the Algerian market and participate in its further development.

    Section II: Exporter Business Tips

    General Consumer Tastes and Trends: Algeria has one of North Africa’s highest per-capita expenditures on food thanks to relatively high disposable incomes and consumers’ strong preference for convenient, quality, and premium food and beverages. Algerian households devote more than 40 percent of their annual expenditure to food needs. Consumer tastes and preferences are changing, especially in the cities where young homemakers tend to be more active, and the number of working women has increased. As a result, consumers are turning to ready-to-eat or semi-processed products. Although some people are attracted by the organic and healthy diets, dietary habits are changing to a diet richer in animal fat and sugar.

    Market Research: For the most part U.S. exporters are not familiar with the Algerian market and its regulations, and the same is true for Algerian importers seeking U.S. products. U.S. exporters should inquire about all the regulations and the Algerian market structure before starting business or shipping goods. They can identify a potential importer, distributor or a consultant who is aware of the business culture and the market structure, who knows the food and retail sectors’ players and can execute all the necessary steps and resolve any issues on the ground on behalf of the U.S. company.

    Market Structure: The structure of the market is detailed in section IV below. Overall, the food retail and distribution sector are developing. Supermarket industry is growing, albeit slowly. Local food manufacturing industry is fundamentally dependent on imports of ingredients and raw materials. Most of these sectors are exclusively controlled by private businesses. Most of the supermarkets, hotels and food retail stores do not import directly, but purchase from local wholesalers and importers. Large food processors import their own ingredients. Most importers are in large cities and import through the ports of Algiers, Oran, Bejaia, Mostaganem and Jijel. They import both bulk and packaged products. The products are distributed to wholesalers and then sold in small stores, supermarkets, and wet markets. Algeria uses the metric system. French and Arabic are the predominant business language.

    Section III: Import Food Standards, Regulations and Procedures

    Import food standards and regulations as well as import procedures can be found in the FAS Food and Agricultural Import Regulation and Standards Reports.

    Fairs Annual Country Report

    Fairs Export Certificate Report

    Section IV: Market Sector Structure and Trends

    Food Retail and Distribution: Private businesses control retail trade almost exclusively. Since the economy was liberalized in the 90s, consumers became accustomed to seeing imported products and semi-processed products sold in grocery stores and small private supermarkets. Consumers shop for bulk, packaged and high value products, both local and imported, in small supermarkets called “superettes”. Private wholesalers are increasingly active in the food sector. The private sector is also trying to expand distribution channels, as well as the hotel restaurant institutional (HRI) sector.

    Overall, the supermarket industry is still in its infancy. The Ministry of Commerce has also invested in the construction of smaller, urban retail spaces that meet industry standards to strengthen the regulation of the retail network to ensure price stability, especially for food staples. According to the 2016 data available by the Algerian Register of Commerce, there were 1,415 retail markets in the country, 38 Hypermarkets, 1,919 superettes and 232 supermarkets. Only three large private supermarket chains (UNO, ARDIS, FAMILY SHOP) exist in the capital and four other main cities of the country. The French chain Carrefour is also present in Algeria.

    The Algerian food sector could also develop much more quickly if modern distribution was itself sufficiently developed. While large and medium-sized firms are modernizing, many small firms do not master processes, traceability, filling and packing, international standards or banking and tax procedures. Food industry firms must sometimes manage their own distribution networks themselves and provide assistance to their wholesalers to enable them to acquire their equipment.

    Food Processing: The government has committed to divesting itself from agricultural production and processing. Private processors continue to grow, and many are offering products at lower prices by importing raw materials and processing them locally. The private sector is active in wheat and feed milling, dairy processing, vegetable oil refining, sugar refining, beverage production, canning, and the biscuit industry as well as soybean crushing plants.

    The local food manufacturing industry is fundamentally dependent on imports of ingredients and raw materials. In addition, population increase, growing demand for convenient processed foods, as well as improved production capacities favor the expansion of the food processing industry. These conditions support demand for ingredients and create opportunities for increased U.S. exports into Algeria.

    Milling and Dairy industries: Wheat is the major staple food followed by dairy. Several mills and dairy plants are operating in different regions of the country with varying capacities. These enterprises are increasingly interested in U.S. products and expertise.

    HRI sector: This sector is growing however still needs further expansion. The opening of five-star international hotel chains as well as local four-star and three-star hotel chains increases demand for inputs and ingredients. Domestic fast food and new restaurants chains are growing as well.

    Beverage, Canning, Snack and Biscuit industries: The local food processing industry is improving and upgrading. They are aware of the need for consistent quality and regular supply of higher quality inputs. This sector represents a good prospect for U.S, suppliers of ingredients. This is an opportunity for U.S. expertise and food ingredients exports. The food industry and ingredient show “Djazagro ” newsletter indicated that the food market revenues in Algeria amounted EUR 10.8 billion in 2022. The largest market segment is confectionery and snacks, with a market volume of EUR 2.4 billion in 2022.

    In the food market, 1.8 percent of total revenue will be generated by online sales by 2022. In the Food market, 0.9 percent of total revenue will be generated through online sales by 2024.The Food market volume is expected to amount 5.75bn kg by 2028 and the volume growth is expected to reach 2.0 percent in 2025. The average volume per person in the food market is expected to amount to 114.70kg in 2024.

    The newsletter reported that the revenue of the soft drinks market amounted EUR 1.9 billion in 2022. The largest market segment is carbonated soft drinks with a market volume of EUR 1.4 billion in 2022. The revenue of the hot beverages market amounted EUR 2.6 billion in 2022. The market is expected to grow at a compound annual growth rate (CAGR) of 0.61% per annum (2022-2025). The largest market segment is coffee, with a market volume of EUR 2.2 billion.

    More information on the food, retail, distribution and beverage market trends can be found at this year’s edition of Djazagro Show newsletter.

    Section V: Agricultural and Food Imports

    Agricultural and Food Import Statistics

    Unfortunately, the Algerian Customs website has not published any trade figures since 2020. The sole import figures available are from 2020. Algerian imports of agricultural commodities and food represented about 23.52 percent ($8.09 billion) of total imports ($34.39 billion) in 2020. Wheat and dairy are the top food imports. Algeria is one of the world’s largest importers of wheat and dairy products. The other products were represented by (sugar and confectionary, coffee and spices, food preparations, food industry residues, edible fruits, legumes, roots and bulbs, live animals and tobacco and processed tobacco.

    Data from the Trade Data Monitor (TDM) shows that Algeria’s total imports of consumer-oriented the last five years has remained fairly stagnant. However, staple food (wheat and dairy products) remains dominant compared to consumer-oriented products.

    Trade Data Monitor (TDM) chart below shows the top exporting countries of consumer oriented agricultural products to Algeria. EU countries remain the main supplier of finished food products to Algeria. The U.S. is at a geographical disadvantage, due to Algeria’s proximity to Europe. Additionally, there are no direct shipping lines from the U.S., making transit through Europe necessary. Moreover, the EU-Algerian Association Agreement provides preferential access to some commodities making relatively high cost for U.S. food and agricultural products compared to imports from other countries.

    Best High-Value, Consumer-Oriented Product Prospects

    Most of the U.S. agricultural exports to Algeria are bulk and intermediate commodities. Consumer oriented products represent only 15 percent of the total U.S. exports to Algeria in 2023. In calendar year (CY) 2023, the main U.S. agricultural exports to Algeria were wheat, soybeans, tree nuts, soybean meal, planting seeds, feed & fodders, forest products, dairy products, pulses, as well as live animals (turkey day-old chicks and hatching eggs).

    As shown in the chart below, the best prospects for U.S. consumer-oriented products are tree nuts at the top of the list showing an upward trend.

    Tree nuts: Demand for tree nuts remains high, especially since additional import tariffs (DAPs) on tree nuts and dried fruits was removed since 2019. Imports are not hampered even by price increase as shown in the chart below. The figures below indicate that despite the increase of prices over the years, volumes increased.

    The United States remains the leading exporter of tree nuts to Algeria. (See U.S. Exports chart below). For more information, please review the FAS Tree Nuts Report.

  • Opportunities for U.S. Ag Products in Vietnam and Thailand

    USDA Foreign Ag Service — Vietnam offers abundant opportunities for exporting consumer-oriented products, despite the challenges of recovering from the COVID-19 pandemic and dealing with high inflation. The Vietnamese economy is poised for significant expansion in the coming decades. With a burgeoning population and a growing middle class, Vietnamese consumers are becoming more discerning about the origin and composition of their food. As suppliers of safe and high-quality agricultural products, U.S. agricultural exporters are in a good position to bolster sales in the Vietnamese market for commodities such as tree nuts and dairy products. Vietnam also has growing sectors able to absorb high-value U.S. products such as retail, tourism, and food processing, and consumers are increasingly focused on health and wellness. For similar reasons, notably a growing middle class and strong domestic industries, there are also opportunities in Thailand for consumer-oriented agricultural products from the United States.

    Macroeconomic Perspective of Vietnam

    Vietnam, a country of 105 million people, is among the fastest growing economies in the world. In 2024, the real gross domestic product (GDP) growth of Vietnam is expected to stabilize – at 6.0 percent after reaching 8.1 percent in 2022. This growth is supported by the vast expansion in the services and industrial sectors and the continued recovery of tourism following the COVID-19 pandemic. The GDP per capita in 2023 was $4,284, an increase of $160 from 2022. According to the World Bank, interest rates in Vietnam remain steady due to domestic monetary policy actions. Vietnam is strategically located in Southeast Asia maintaining influentially positive regional ties. Overall, Vietnam is a dynamic market with a rapidly growing middle class and young population influenced by global consumer patterns, rising per capita income, and an expanding economy in key sectors such as retail, tourism, and food processing.

    Vietnam Agricultural Trade Overview

    In 2023, Vietnam imported $32 billion of agricultural products from the world. Imports have increased over the past three years as Vietnam recovered from COVID-19 related trade and travel disruptions. In 2023, the top suppliers of agricultural products to Vietnam were China, Brazil, and the United States, followed by Australia, India, and Cambodia. Over the last thirty years, Vietnam has ratified several regional and bilateral Free Trade Agreements (FTAs) with major trading partners. Where trading partners do not have an FTA in place, Most Favored Nation tariff levels apply.

    Opportunities for U.S. Exports to Vietnam

    Robust opportunities exist for U.S. agricultural products thanks to projected overall market growth and strong preference for high-quality, safe U.S. goods. The United States exported $3.1 billion in agricultural products to Vietnam in 2023, the third largest agricultural product exporter to Vietnam behind China and Brazil. Top exports were in bulk commodities related to feed and manufacturing. While these products make up a large portion of the U.S. market share, many consumer-oriented goods are also among top products exported and represent exciting growth opportunities. Despite a rapidly growing middle class and preference for U.S. high-quality products, Vietnam is a price sensitive market.

    Demand for high-value consumer-oriented products

    Vietnamese consumers demand high-quality and safe products. U.S. exporters of consumer-oriented products are well poised to fill this demand as both the population and the middle class continue to grow. U.S. products are sold at various levels – retail, hotel, and food processing– all growing industries in Vietnam. In 2022, Vietnam’s retail sales increased by 13 percent, the hotel, restaurant, and institutional (HRI) market grew by 51 percent, and the food processing and manufacturing sector grew by 9 percent. According to Euromonitor International, Vietnam’s HRI sector is comprised of over 330,000 outlets in the following subsectors: restaurants, bakeries, cafés and bars, street stalls, hotels, and institutional catering services. Consumer-oriented U.S. products are also further used as ingredients in Vietnam’s food processing sector. Food processing ingredients include dairy products, other edible bovine products, processed fruits, tree nuts, peanuts, and potatoes.

    Dairy Products

    In 2023, U.S. exports of dairy products to Vietnam were $146 million. Non-fat dried milk powder and fresh cheese represent high value prospects for U.S. exporters. While cheese is typically not consumed as part of the traditional diet, food service establishments and the exposure of younger generations to global diets continue to drive the demand for both hard and soft cheeses. According to Euromonitor International, an increasing consumer focus on healthy living is also bolstering the demand for higher protein and calcium cheeses like packaged hard cheese but may present challenges for cheeses with higher sodium and saturated fat contents. Non-fat dried milk powder for use in nutritional drinks and reconstituted milk are also popular in Vietnam and offer a safe and shelf-stable alternative to fresh milk. Other dairy products with good export potential include lactose and whey, which currently constitute 17 percent and 10 percent of U.S. dairy exports to Vietnam respectively.

    Fresh Fruits

    Vietnam holds high market potential for increased exports of fresh fruits from the United States. Exports of U.S. fresh fruits in 2023 reached $105 million (a 13-percent decrease from 2022 due, in part, to domestic inflation) and consisted mainly of apples, cherries, and grapes. USDA worked with other USG agencies to gain market access for U.S. grapefruit in February 2023. In total, Vietnam has granted access for seven fresh fruits of U.S.-origin: apples, cherries, grapes, pears, blueberries, oranges, and grapefruit. Imported fruits will become increasingly popular as their affordability improves because of economic growth and as Vietnamese consumers adopt healthier diets.

    Meat Products

    As the economy and international tourism continue to rebound, consumption of imported meat is expected to grow in both value and volume in the coming years. According to Euromonitor International, the increased focus on health and fitness is also fueling a shift towards leaner proteins such as chicken, although demand for red meat remains strong. High-prospect meat products include frozen/chilled beef (boneless and bone-in), frozen chicken (leg quarters, legs, and paws), and turkey. Price competitive imported frozen products do well over local chilled options.

    Processed Products

    In 2023, Vietnam was the United States’ 11th largest market for processed agricultural products. Fifteen years ago, it was the 24th largest market. Products with high growth over the period include processed egg products, chocolate and confectionary, non-alcoholic beverages, pet food, condiments and sauces, processed vegetables, and snack foods. According to the FAS Exporter Guide for Vietnam (VM2023-0074), the COVID-19 pandemic resulted in many shifts in the shopping habits of Vietnamese consumers. One such shift is the increased purchase of shelf-stable foods using online shopping and door-to-door delivery services, with e-commerce sales increasing 26 percent in 2022.

    Condiments and sauces: According to Euromonitor International, pickled, and low-salt products have high potential in the Vietnamese market. Overall, the country is becoming more health conscious, and the government is trying to reduce the incidence of noncommunicable disease. These goals have shifted demand to lower sodium condiments and sauces, as well as plant-based products, dairy-free products, sugar-free products, and products with fewer ingredients.

    Processed fruits and vegetables: Dried and processed fruits are used domestically as ingredients and for snacking. Increasing demand for healthy foods will continue driving consumption as local production is unable to keep up with domestic demand. While Vietnam is a large producer of vegetables, food manufacturers in Vietnam use a mix of locally produced raw materials and imported food ingredients in their operations. The top selling U.S. products in this category are raisins and frozen potatoes.

    Tree Nuts

    Tree nuts are the fifth largest U.S. agricultural export to Vietnam. In 2023, U.S. tree nut exports reached $238 million, a 37-percent increase over 2022. Major U.S. exports include pistachios, almonds, walnuts, cashews, and pecans. Recovery of the manufacturing and tourism sectors has increased demand for U.S. tree nuts. While demand remains strong, when imported for local consumption, tree nuts are subject to import tariffs from 8 to 30 percent. However, most U.S. tree nuts imported into Vietnam are further processed and re-exported to third countries and are therefore exempted from import tariffs.

    Opportunities for U.S. Consumer-Oriented Goods in Thailand

    Many opportunities for U.S. consumer-oriented good exports also exist in Thailand, which boasts the fourth highest per capita income in the Association of Southeast Asian Nations after Singapore, Brunei, and Malaysia. With a population of 70 million and real GDP growth of 3.0 percent forecast in 2024 compared to 2.5 percent in 2022, private consumption is expected to grow with the expansion of the middle class. GDP growth is forecast to reach 3.5 percent by 2027.2 As much of the Thai economy relies on tourism, post-pandemic recovery is paramount for continued economic growth. After a period of high consumer price inflation in 2022, prices have stabilized while inflation is expected to remain below 2 percent in the near term. According to the World Bank, per capita GDP in 2022 was $6,910, $150 lower than in 2021. Strong fiscal and monetary policy in Thailand have resulted in growing investment in the country. As a result, the prospects for Thai economic growth are promising.

    Thailand Agricultural Trade Overview

    In 2023, Thailand imported $17 billion of agricultural products, the top suppliers of which were Brazil, China, and the European Union. The United States was the fifth largest supplier of agricultural products to Thailand with $1.2 billion in exports. Top U.S. agricultural exports to Thailand were in bulk commodities related to feed and manufacturing, but strong opportunities exist for U.S. consumer-oriented products as well. Like Vietnam, Thailand also has large retail, tourism, and food processing sectors that rely on U.S. agricultural products. According to the FAS Exporter Guide for Thailand (TH2022-0083), demand for high-convenience processed foods as well as ready-to-eat meals, healthy food products, and food delivery are rising among Thai consumers. Plant-based and free-from products are also growing in popularity. Over the last twenty years, Thailand has ratified several regional and bilateral FTAs with major trading partners. Where trading partners do not have an FTA in place, Most Favored Nation tariff levels apply.

    Products with growth potential include:

    • Beef Products: U.S. exports of beef and beef products to Thailand have more than doubled in the last ten years, driven by exports of boneless frozen beef. Demand for imported beef is increasing because of urbanization, rising incomes, tourism, and the slow recovery of the domestic livestock sector following severe pandemic-related disruptions.
    • Dairy Products: Consumption of cheese and non-fat dried milk powders for nutritional drinks is expected to grow in Thailand. As in Vietnam, consumers are increasingly influenced by western-style diets, which incorporate cheese products into healthy lifestyle messaging.
    • Dog and Cat Food: The dog and particularly cat pet populations in Thailand are expanding, as highlighted in FAS reporting (TH2021-0063
    • ). As consumers shift to healthier lifestyles themselves, they have increased purchases of premium packaged pet food products like treats and pet foods labeled as natural and healthy. Thailand allows dry and wet pet food imports from the United States.
    • Fresh Fruits: The United States consistently ranks as a top five supplier of fresh fruit to Thailand. Top exports include fresh apples and cherries, both of which grew in 2023, increasing 35 percent and 83 percent by value. Fresh fruit imports are challenged by fluctuations in the Thai baht, but demand for imported fresh fruit remains strong.
    • Wine: In February 2024, Thailand removed its high import tariff and reduced the excise tax on wine to promote tourism and increase spending by foreign and domestic tourists. These measures are expected to improve the competitiveness of U.S. wines. Wine consumption is increasing among Thai consumers due to the growing middle class, large tourism industry, and expansion of “wine culture” in hotels, restaurants, and bars. U.S. exports of wine and related products grew by both value (6 percent) and volume (18 percent) in 2023.

    Conclusion

    With projected population and economic growth, Vietnam will remain a market with high growth potential for U.S. agricultural exports. Consumer-oriented products present particularly good opportunities, as Vietnamese consumers increasingly demand high-quality, safe, and nutritious products. Dairy products (cheese, non-fat dried milk powder), fresh fruits (apples, cherries), meat products (beef, poultry), processed products (condiments, pet food), and tree nuts (pistachios, almonds) are all exciting growth areas for U.S. exports. Thailand also presents opportunities for premium consumer-oriented products for many of the same reasons as Vietnam: a growing population and middle class, increased preference for healthy and nutritional products, and strong sectors able to absorb high-value U.S. products. In both countries, there is strong and growing consumer preference for U.S. branded products and exporters of U.S. agricultural products are sure to find exciting prospects in these markets.

  • New Farm Bill Priorities Supporting Specialty Crop Agriculture

    As legislature continues to work on completing a new Farm Bill, specialty crops may reap greater representation and benefits than in any previous Farm Bill. Watch this brief video featuring Philip Karsting from Olsson Frank Weeda as he discusses their priorities for specialty crop ag at a recent conference held by American Pistachio Growers.

    Special thanks to American Pistachio Growers for sponsoring this video.

  • Ginning up a Market for U.S. Cotton in Bangladesh

    USDA Foreign Ag Service — For almost 50 years, Bangladesh required U.S. cotton be fumigated because of concerns about the boll weevil. Collaboration between USDA agencies and the Bangladesh Ministry of Agriculture resulted in amended import requirements, exempting the United States from the list of countries required to fumigate cotton upon arrival.

    This is a significant trade win for American cotton as Bangladesh is the fifth-largest export market for U.S. cotton, with export values exceeding $339 million in 2023. This decision gins up a new chapter for U.S. cotton growers to expand their market access to Bangladesh. As one of the world’s top import markets for cotton, Bangladesh is a growth market with great potential for American cotton for years to come.

    FAS worked diligently to improve perceptions of U.S. cotton and provide evidence that the boll weevil is not a serious threat to imports. Momentum spun up when FAS provided significant technical evidence on the near total eradication of the boll weevil back in 2021 to ease Bangladesh’s concerns over the pest. Following that, FAS spent two years meeting with Bangladesh officials, including a High-Level Economic Consultation and an Agriculture and Ease of Business meeting.

    The Cotton Council International (CCI) continued bilateral efforts, bringing a Bangladesh delegation to visit U.S. cotton facilities and farmers in November 2022. The delegation witnessed the effectiveness of the Boll Weevil Eradication Program. Also, during the visit, the delegation learned about modern cotton harvesting and standardized ginning techniques while touring cotton fields, gins, and warehouses in Mississippi, Tennessee, and Texas.

    This is an example of American farmers showcasing high quality agricultural products to an overseas market – a crucial element to growing American exports. U.S. cotton farmers not only utilize the Animal and Plant Health Inspection Service (APHIS) Boll Weevil Eradication Program to eliminate the pest, but the program also helps thousands of U.S. cotton growers become more competitive. Additionally, the CCI receives FAS Market Access Program funds to help grow overseas markets for American cotton growers.

    This success is a testament to the continued efforts and nearly 22 years of engagement among the U.S. cotton industry, FAS, APHIS, and Agricultural Research Service officials, and the Government of Bangladesh to advocate for fair and open trade practices that benefit American farmers and businesses.

  • Opportunities to Grow Tree Nut & Wine Exports in Serbia

    Serbia offers good opportunities for the U.S. exporters of consumer-oriented agriculture products. From January-October 2023, total U.S. exports of agriculture products to Serbia reached $22.6 million, an increase of about 16 percent compared to the same period in 2022. The most significant commodities traded were almonds, whiskey, bourbon, tobacco, sweet potato, pistachios, peanuts, vegetable planting seeds, pet food, cranberries, juices and extracts from hops, wine, dietetic foods, concentrated proteins, snacks food, fish, and seafood products. This report provides U.S. food and agriculture exporters with background information and suggestions for entering the Serbian market. The statistical data are as of October 2023.

    The World Bank (WB) ranks Serbia as an upper middle-income economy based on the Gross National Income per capita of the previous year (2023). Serbia is ranked 35th among the 39 countries in Europe. Moreover, the International Monetary Fund projected real GDP change at 2 percent in 2023. The total GDP is projected at $75 billion. Serbia is a developing country with a vibrant agriculture and food industry which contribute to almost 10 percent of total GDP. In 2023, the average annual inflation rate is expected to be 8.5 percent. Serbia has Free Trade Agreements with the European Union (EU), Turkey, and the Eurasian Economic Union (Russia, Kazakhstan, Belarus, Armenia, and Kyrgyzstan). It is also a signatory to the Central European Free Trade Agreement (CEFTA). January-October 2023 Serbia’s total agri-food exports reached a value of $4.1 billion, a decrease of 8 percent from the same period in 2022. The total agriculture imports in 2022 were valued at $2.9 billion, a decrease of 3 percent compared to the same period in 2022 with a registered $1.2 billion surplus.

    In the January-October 2023 period, agri-food imports were $2.9 billion, a 3 percent decrease compared to the same period in 2022. Over 60 percent of imports come from the EU member states, while 30 percent come from the CEFTA member countries. The total U.S. agri-food exports to Serbia for the January-October 2023 period were valued at $22.6 million, with an increase of about 16 percent compared to 2022. One major obstacle to increasing the U.S. market share in Serbia a is 30 percent customs import tax on most agri-food products, compared to zero import taxes for products from countries with whom Serbia has signed FTAs (about 90 percent of Serbian trade partners). Essential commodities imported from the U.S. include almonds ($4.9M), whiskey bourbon ($3.5), consumer products ($2.6M), pistachios ($2.5M), tobacco ($1.4M), peanuts ($860,000), baby food ($605,000), vegetable seed ($580,000) and hake ($520,000).

    Serbia is the largest agricultural market in the Western Balkans, with strong agricultural production and food processing tradition. Serbia is a global leader in the production of non-GMO corn and raspberries. The food processing industry accounts for approximately one-third of Serbia’s processingindustry. Over 20,000 food businesses are operational, and about 90 percent are micro, small, or medium-sized enterprises. This industry employs more than 120,000 people and is a rare example of a sector that has not been hit adversely by the economic crisis during COVID-19 pandemic. The largest subsectors in Serbia by value are dairy, meat, fruits, vegetables, wine, and confectionery industries.

    Food retail revenue in the Serbian market is approximately $9 billion a year, which represents a relatively small market. Foreign retail chains hold more than 80 percent of the total retail market, mainly divided between Dutch-owned Delhaize (owner of retail chains Maxi and Tempo) and the Croatian Fortenova Group (owner of retail chains Idea, Roda, and Mercator). Other international retail chains include Germany’s Metro, Lidl, and Greece’s Super Vero. Domestic retail chains represent only some 20 percent of the Serbian market: Dis, Univerexport, and Gomex. More than 50 percent of all food products are still sold through small grocery shops (estimated to number close to 30,000). Due to significant changes in consumer behavior during the COVID-19 pandemic, online retail increased by almost 600 percent since March 2020. Delivery services also expanded their business in Serbia by more than 400 percent over the past 3 years.

    Economic Situation

    The Serbian economy is rebounding from last year’s energy price shocks, despite continuing adverse economic conditions both regionally and globally. Economic growth is expected to reach 2 percent in 2023, increasing to 3 percent in 2024 as domestic demand recovers. Unemployment is at an all-time low. Inflation rose to 16 percent in February 2023, which was slightly higher than expected, led by higher food and energy prices. Average inflation in 2023 is expected to be 8.5 percent mostly driven by cost-push pressures. Additional challenges include the performance of the Serbian energy sector and the availability of electricity and gas in the winter of 2024, as well as the rising cost of financing the fiscal deficit and debt obligations considering higher interest rates. With limited space for future stimulus packages, structural reforms are needed to bring the economy back to sustained and growth, boost jobs and incomes. Currently, almost 60 percent of the population’s income is spent on food it is expected to be even more during 2024.

    Serbia needs to make further changes to its regulatory policy, mainly in accordance with the 2023 European Commission (E.C.) Annual Progress Report for Serbia published on November 8, 2023, https://neighbourhood-enlargement.ec.europa.eu/serbia-report-2023_en. According to the report Serbia made limited progress overall. The capacity to pursue key challenges in trade policy needs to be strengthened, to move forward with accession to the World Trade Organization (WTO), where again no progress was made. In October 2023, Serbia provided an updated list of actions to be taken in the context of the WTO accession process as part of the action plan on its remaining legislative alignment with the EU acquis. In the coming year, Serbia should adopt a WTO-compliant law on genetically modified organisms, to move forward with remaining bilateral market access negotiations and towards finalization of its accession to the WTO.

    Overall Business Climate

    Serbia is an open economy with a strategic geographic location that makes it an attractive destination for investment and exports. Serbia has easy access to both EU and non-EU markets, a highly skilled and educated force, and solid infrastructure that has led many global companies to establish manufacturing and service facilities (see Serbia’s Country Commercial Guide https://www.trade.gov/country- commercial-guides/serbia-market-overview?section-nav=5477 ).

    Recent Trends

    The local and regional media frequently publish articles detailing consumers perceived (and actual) discrepancies in the quality of identically branded food products sold in Western Europe and Serbia. Concerns about ingredients and lower quality also have a strong influence on buyers’ confidence in imported products. This “dual ingredient” issue is common in Central and Eastern European countries. Most consumers have adjusted their eating habits and diet for health reasons, increasing health consciousness. Price remains the most important factor affecting purchasing decisions.

    Serbian consumers are increasingly purchasing online especially cross-border retail for lower prices and this segment is expected to grow at an annual average rate of over 10 percent over the course of the next five years. Currently, e-commerce is 5 percent of total retail turnover at about $500 million a year with 2.9 million online shoppers. The number of shoppers is expected to increase to 3.9 million by the end of 2024. Read the full report from USDA Foreign Ag Service HERE.

  • Cracking Open New Markets for California Almonds

    USDA Foreign Ag Service — If you committed to eating healthier this new year, chances are you are not alone. New year resolutions focused on living a healthy lifestyle are some of the most common resolutions made throughout the world. Thankfully sticking to that new year resolution in 2024 just got easier for international consumers, thanks to increased exporting opportunities for U.S. almonds to Europe and Asia.

    U.S. almonds are a nutrient-rich food, packed with protein, fiber, vitamin E, calcium, copper, magnesium and riboflavin. All commercially produced almonds in the United States are grown in California, which is home to more than 7,000 almond growers and processors.

    The popular tree nut, considered a specialty crop in the agricultural industry, is the State’s leading agricultural export. In 2022, U.S. almond exports to the world totaled $4.5 billion. This tree nut is also heavily rooted in many family trees, as almond farming is a “family-driven” agricultural industry in California.

    “About 90 percent of almonds are grown by family operations, many of which are multigenerational,” explained Julie Adams, Vice President of Global Technical and Regulatory Affairs for the Almond Board of California, in a recent conversation. “Communities throughout the Central Valley depend on ag in general, and almonds in particular to contribute to their overall economic wellbeing.”

    For these family operations in California, overseas markets have become a critical component to their success and bottom line. An astounding two-thirds of California’s almonds are exported. So no matter how you crack it, almond exports are a crucial portion of revenue for California producers, “and keeping strong and diverse market opportunities is essential to long-term profitability,” said Adams. Especially, “in the Central Valley, where many communities have been suffering the economic effects of increasing crop input costs and lower returns.”

    This is where USDA’s Foreign Agricultural Service (FAS) comes into play for almond exporters and the Almond Board of California. FAS – with its network of offices and attachés around the world – helps open and expand markets for U.S. agricultural exports. For example, just recently FAS identified fresh market opportunities in Italy and Bulgaria. Through its close partnerships with U.S. cooperators, including the Almond Board of California, and foreign buyers, California almond exports to Italy and Bulgaria in 2024 are expected to grow by millions of dollars.

    India is another almond market with exciting growth opportunities. Last year, India removed retaliatory tariffs on U.S. almonds and other products. The impact of removing that trade barrier is already being seen in the export market, and the value of U.S. almond exports to India is expected to reach $1 billion in 2024.

    “India is our number one export market,” noted Adams. “It has grown significantly because of our long-term commitment, promotions, and ongoing relationships with customers and consumers. Almonds are unique, in that they are an integral part of India’s history and culture – we’ve leveraged that tradition in our marketing efforts and supported it through investing in nutrition research in India.”

    These opportunities for market growth are some of the bright spots that FAS has identified for 2024 as the agency works to advance USDA’s goals for diversifying and enhancing international markets for American farmers, ranchers, agribusinesses, and exporters.

    USDA also recognizes that for agribusinesses, especially small businesses, entering the export market can be a tough nut to crack. That is why FAS works closely with state and regional agricultural trade groups to help U.S. agribusiness owners grow their company’s revenue through exporting. One way of doing this is through USDA’s market development programs, like the Foreign Market Development (FMD) program and Market Access Program (MAP). FAS just announced MAP and FMD funding allocations for FY24, which will have an immediate impact on helping expand U.S. exports to markets across the globe.

  • Opportunities for U.S. Ag Products in India (Tree Nuts Included)

    USDA Foreign Ag Service — India is the world’s most populous country and boasts one of the fastest growing economies in the world. As Indian households continue to reach higher levels of consumer spending, imported agricultural products are becoming more accessible to a larger number of people. U.S. agricultural exporters wanting to enter India’s market will have numerous opportunities to help meet this growing demand for imported food and agricultural products.

    Top agricultural prospects for U.S. exporters include cotton, dairy products, ethanol, fresh fruit, forest products, processed food and beverages, pulses, and tree nuts. Recent policy changes will expand market opportunities for important U.S. products, including newly reduced tariff rates on pecans, and the removal of retaliatory tariffs on almonds, apples, chickpeas, lentils, and walnuts. Reductions to India’s most-favored-nation (MFN) rates for blueberries, cranberries, frozen turkey, and frozen duck are expected in 2024. Looking ahead, India has tremendous potential to be a large consumer of many of the high-quality and diverse agricultural products that the United States has to offer.

    Macroeconomic Perspective

    India is the most populous country in the world with an estimated population of 1.4 billion in 2023, according to the United Nations, and accounts for 18 percent of the total global population. Since the beginning of the 21st century, India’s population has grown substantially. While it is not the fastest growing country by percentage basis during this period, India has grown by the largest number of people with an increase of  400 million since 2000.

    Key to India’s prospects as a destination for U.S. food and agricultural exports are 1) its growing gross domestic product (GDP), 2) consumer spending, and 3) urbanization. Following a period of decline during the COVID-19 pandemic, India’s real GDP recovered in fiscal year (FY) 2021 (October-September), and in FY 2022 it grew at an estimated 6.9 percent – among the highest of any country. At the same time, Indian households have been increasing consumption spending – a trend that is expected to continue. S&P Global forecasts that during the next 5 years, Indian households will become the biggest spenders among the G20 economies, driven by compound annual spending growth averaging 6.6 percent per year (compared to the G20 average of 2.7 percent). Finally, despite slowing slightly in recent years, India’s urban population has continued to grow. In 2022, the World Bank estimated that 508 million Indians (around 36 percent) live in urban areas, up 2 percent from 2021.

    India’s population and these macroeconomic factors are important parts of what make India a strong future prospect for U.S. exports. In addition to population growth, a rapidly expanding distribution and retail network are making imported food and other agricultural products more accessible to a higher proportion of people. India has potential to be a large consumer of many of the high-quality and diverse agricultural products that the United States has to offer. This will become increasingly critical as India’s ability to feed its growing population on its own will be challenged by the impact of climate change on its production capabilities. India is already confronting production problems resulting from depleted water reserves, soil degradation, increasingly erratic weather, and labor migrating to urban areas.

    Agricultural Trade Overview

    Top India Agricultural and Related Product Imports from the World
    Million USD, Fiscal Year (Oct-Sep)

    Agricultural & related products includes all agricultural products plus forest products, seafood, and biodiesel.
    Source: Trade Data Monitor, LLC – BICO HS-6.

    In FY 2023, India imported $37 billion of agricultural and related products from the world. In the past 5 years, India’s imports have grown substantially, up by $12.5 billion (51 percent) from FY 2019. India is ranked as the eighth largest global importer of agricultural and related products. Proportional to its population, India imports a relatively small value of products. Comparatively, China, a country with a similar population size, imported $262.7 billion during the same period. Currently, India ranks behind much lower population countries like Canada and South Korea in total agricultural and related imports. This relatively low level of imports suggests good opportunities for future growth.

    Much of India’s import growth in recent years can be attributed to the growth of vegetable oils, by far India’s top imported agricultural product. Imports of vegetable oil increased by $9 billion, nearly doubling in 5 years, to a total of $18.4 billion in FY 2023. Palm oil, a product that the United States does not produce in substantial quantities, comprises more than half of India’s vegetable oil imports, totaling $9.9 billion in FY 2023. Soybean oil is India’s second most imported oil, totaling $4.8 billion and comprising more than a quarter of vegetable oil imports in FY 2023.The United States has occasionally been a supplier of soybean oil to India when market conditions are favorable, including in FY 2022, but imports face stiff competition from other substitutable oils like palm and sunflower, and from imports from India’s traditional soybean oil suppliers, Argentina and Brazil.

    Tree nuts were the second largest category of imported products in FY 2023, reaching $2.8 billion. India’s top imported type of tree nuts were cashews, valued at $1.4 billion, which are generally imported for processing from growing countries like Cote d’Ivoire and Ghana. India is a major producer and exporter of shelled cashews. India’s second most imported type of tree nuts were almonds, a vast majority of which were supplied by the United States, valued at $932 million. These were followed by pistachios, valued at $201 million, and areca nuts (also known as a betel nut, a chewed product consumed in many South and Southeast Asian countries), valued at $156 million.

    India is the world’s largest importer of pulses, a category which contains legumes, such as lentils and beans. Pulses are a major source of protein in India, particularly for the country’s large number of vegetarians. India imported $2.6 billion of pulses in FY 2023. Lentils were the top exported pulse, valued at $1.0 billion. Lentil imports increased significantly during the past 5 years, up by $748 million (286 percent) from $262 million in FY 2019. Other major pulse imports included pigeon peas, valued at $792 million, and mung and urad beans, valued at a combined $555 million. India is a large consumer of pulses, and supplements with imported product when domestic production is insufficient. Top suppliers include Burma, Canada, and Australia.

    Other major agricultural and related products imported in FY 2023 include forest products ($2.3 billion), industrial alcohols and fatty acids ($832 million), and sugar and sweeteners ($821 million). The European Union is India’s top supplier of forest products, providing mostly planks of pine, spruce, and fir. India also imported a large value of tropical woods and veneers from Malaysia and Indonesia. Industrial alcohols and fatty acids, ingredients used by both the food industry and in the production of cosmetics and detergents, were mostly imported from Indonesia and Malaysia. Nearly 95 percent of India’s imports of sugar and sweeteners were from Brazil in the form of raw cane sugar.

    Opportunities for U.S. Exports

    Top U.S. Agricultural and Related Product Exports to India; Million USD Fiscal Year (Oct-Sep)

    Source: U.S. Census Bureau Trade Data – BICO HS-10

    India, despite its rapidly growing economy and population growth, remains a price sensitive market. U.S. export growth, without the further removal of tariffs, will remain constrained. India is negotiating and agreeing to free trade agreements with several U.S. competitors, including Australia and the United Kingdom. Competitors, for example, were able to take advantage of the Section 232 retaliatory tariff restrictions to gain market share; despite many retaliatory tariffs being lifted in 2023, it will be challenging to regain market share for the impacted products.

    Opportunities for Bulk, Intermediate, and Agriculture Related Products

    In FY 2023, $267 million of bulk products comprised 14 percent, $340 million of intermediate products comprised 28 percent, and $110 million of related products (including forest products, seafood, and biodiesel) comprised 6 percent of total U.S. agricultural and related exports to India. Major exported bulk products, consisting of commodities which have received little or no processing, included cotton ($237 million) and soybeans ($26 million). Major exported intermediate products, consisting of commodities which have received some processing but are generally not ready for final consumption, included ethanol ($148 million), essential oils ($56 million), miscellaneous feeds, meals, and fodders ($29 million), and dextrins, peptones and proteins ($27 million). Major exported agriculture related products included forest products ($81 million), and seafood ($29 million).

    Bulk, intermediate, and agriculture related products with high potential for U.S. exporters include pulses, cotton, ethanol, forest products, and seafood.

    Pulses, as outlined in the previous section, are one of India’s top imported product groups. The United States is not a top supplier to India, despite being the world’s fourth largest exporter of pulses in FY 2023. Less than $1 million of the United States’ $880 million total pulse exports went to India. This is down significantly from the record year, FY 2014, when the United States exported $174 million of pulses to India. A major constraint in recent years was the imposition of Indian retaliatory tariffs affecting major U.S. pulse products in 2018. Retaliatory tariffs on U.S.-origin chickpeas and lentils were removed in 2023, allowing U.S. pulses to resume competitiveness and paving the way for increased exports to India. Restrictions facing imported yellow peas and lentils have also been eased, exempted from duties through March 2025.

    Cotton is another high-potential product for U.S. exporters. India is a major producer, consumer, exporter, and importer of cotton. The United States is India’s top supplier of cotton. India’s large domestic textiles sector relies on imported cotton to meet demand, as domestic supply is not consistently sufficient for all types of cotton. In particular, India is a major consumer and importer of long and extra-long staple cotton. While India was only the seventh largest destination for U.S. cotton in FY 2023, it was the largest destination for U.S. extra-long staple Pima cotton, accounting for $122 million of the total $283 million exported to the world. As India’s textile sector continues to grow, U.S. exports will fill an important role supplying cotton, especially high-quality long and extra-long staple products. However, it is important to note that cotton imports overall face tariffs that significantly limit market access.

    Ethanol is imported by India for medical and industrial uses, and the United States has long been the top supplier, most recently capturing 84 percent of the import market in FY 2023. Importing ethanol for fuel blending is prohibited. India is a major producer of ethanol, with a large potable market as well as many industrial uses. In recent years, domestic production supports its ambitious fuel blending mandate. Ethanol is used in manufacturing to produce disinfectants and hand sanitizers (which recently saw a spike in world production and use due to the COVID-19 pandemic), as well as solvents, carriers in foods and cosmetics, commercial deicers, pharmaceuticals, and organic chemicals. Growth in India’s manufacturing of these products will boost import demand, providing growth opportunities for U.S. exporters.

    Forest Products and Seafood, which are not included in USDA’s definition of agriculture but are considered related products, are among the top products exported from the United States to India. Nearly half of all U.S. forest product exports in FY 2023 were pine logs, while much of the remainder was pine products such as planks. Demand for forest products is driven by a few large furniture manufacturers and many small-scale handicraft producers. Generally, consumers are very price conscious. India is a growing market for U.S. forest products, reflecting growing demand for building materials, which will likely continue in the coming years. U.S. seafood exports in FY 2023 were led by shrimp, with $17 million exported to India. India is one of the world’s largest exporters of seafood, but also imports a variety of seafood products from many suppliers. Demand for further variety may provide opportunities for U.S. exporters to supply products not produced domestically in India.

    Opportunities for Consumer-Oriented Products

    In FY 2023, consumer-oriented products comprised around 61 percent of total U.S. agricultural and related product exports to India. Major consumer-oriented products, consisting of products that are generally ready for final consumption, included tree nuts ($1 billion), and dairy products ($39 million).

    Consumer-oriented products with high potential for U.S. exporters include tree nuts, fresh fruit, dairy products, and processed food and beverages.

    Tree Nuts were the top U.S. product exported to India in FY 2023, accounting for more than half of all agricultural and related product exports. India is a major market for the United States’ top three exported tree nuts: almonds, pistachios, and walnuts. In FY 2023, almond exports reached $834 million, while exports of pistachios reached $145 million, and exports of walnuts reached $24 million. Like pulses, tree nuts were also impacted by retaliatory tariffs imposed by India in 2018. The retaliatory tariffs were removed for almonds and walnuts in fall 2023, allowing for market access and continued growth for the top U.S. products exported to India. Future prospects are also strong for U.S. pecans, which were reclassified and assigned a new reduced tariff in summer 2023.

    Fresh Fruit was previously a top U.S. product group exported to India, reaching a record $176 million in FY 2018, but declined in recent years following retaliatory tariffs imposed on U.S. apples in 2018. Apples make up the majority of U.S. fresh fruit exports, comprising 95 percent in FY 2018. Fresh fruit exports in FY 2023 totaled only $3 million. With the removal of retaliatory tariffs in 2023, U.S. apple exports can reestablish their market opportunities, and work toward setting new records in the future. India also recently agreed to reduce MFN tariffs on several products including cranberries and blueberries which should benefit U.S. fresh fruit exporters when implemented in 2024.

    Dairy Products are widely consumed in India, and most are supplied by domestic production. Policy restrictions limit the amount and type of dairy products eligible for import. Despite this, India imported a substantial amount from the world in FY 2023, valued at $363 million. Dairy products are also among the top U.S. products exported to India, with exports consisting mostly of milk albumin (such as concentrates of two or more whey proteins) and lactose. These products, used in manufacturing, are often destined for non-food uses such as pharmaceuticals and in the production of dietary supplements. Milk albumin and lactose are India’s top imported dairy products from the world, and imports have grown substantially in recent years. The United States has a relatively small market share in this segment of India’s dairy imports, behind the European Union and New Zealand.

    Processed Food and Beverages, including products such as snack foods, sauces and condiments, prepared foods and ingredients, and alcoholic beverages have strong prospects in India. Increased demand for imported processed products often accompanies rising household income levels and urbanization, enabling consumers to shop more frequently at larger grocery stores that are likely to stock imported retail items. Imported retail products may be more expensive than domestically-produced products, but middle- and high-income consumers are likely to pay a premium to experience a greater variety or find specific imported products. In FY 2023, the United States exported $160 million dollars of processed food and beverages to India. Top categories included prepared foods and ingredients ($68 million), alcoholic beverages ($21 million), canned fruit ($9 million), and condiments and sauces ($6 million). U.S. alcoholic beverage exports have grown particularly fast in recent years, more than doubling in the past five years, driven by increased whiskey exports.

    Trade Policy

    Consistent with Prime Minister Modi’s “Make in India” and “Self-Reliant India” policies, India impedes agricultural trade with high tariffs and non-tariff barriers. India’s applied tariffs on most agricultural and consumer-ready food products range between 30-40 percent, with bound tariffs as high as 150 percent. The Indian Government routinely enacts sanitary and phytosanitary measures and other non-tariff barriers, particularly in the biotechnology space, that are not based on science- or risk-based approaches. Moreover, India intervenes in the market with price-distortive measures that negatively impact farmers and consumers on a global scale. It applies export bans and restrictions on critical food staples, such as wheat and rice, and maintains minimum-support price schemes for those and other crops where subsidized production also significantly contributes to greenhouse gas emissions, poor air quality, and the depletion of natural resources.

     

    The U.S.-India Trade Policy Forum (TPF) is the principal mechanism to advance bilateral trade between the two countries. Through the TPF, India agreed to improved market access for U.S. pork, cherries, and alfalfa hay in 2021 and 2022. However, pork shipments have not taken off, and India has not fulfilled its obligation to import alfalfa hay due to biotech concerns. In 2023, India agreed to reduce its MFN tariff on 10 agricultural products. Following the 2023 TPF ministerial, India reduced its tariffs on pecans from 100 percent to 30 percent. During Prime Minister Modi’s State Visit, the United States and India announced the resolution to six non-agricultural World Trade Organization (WTO) disputes. Part of the resolution included India agreeing to lift its 2019 retaliatory tariffs of 10 to 20 percent on U.S. almonds, apples, chickpeas, lentils, and walnuts, which went into effect in September 2023. On the margins of the 2023 G-20 Leaders’s Summit, the Office of the U.S. Trade Representative announced a resolution to the final outstanding WTO dispute against India’s ban on U.S. poultry and egg imports due to unsubstantiated avian influenza claims. During the Summit, India also agreed to reduce its MFN tariffs on blueberries, cranberries, frozen turkey, and frozen duck destined only for high-end hotels and restaurants. Tariffs are expected to be reduced by March 2024 from 30 percent to a range within 5 to 10 percent, depending on the Harmonized System code.

  • Helping Reduce Methane Emissions by Solving a Sticky Problem for U.S. Produce Exporters

    USDA Foreign Ag Service — We see them every time we purchase fresh fruits and vegetables: price look up (PLU) labels. The little coin-size stickers are stuck to everything from apples, bananas, and cantaloupes to watermelons, yams, and zucchini.

    According to the Sustainable Packaging Coalition , PLU labels have been used globally for more than 30 years with the International Federation for Produce Standards issuing more than 1,400 PLU codes.

    PLU labels offer many benefits to the agriculture, trade, and retail industries. The labels lower costs and optimize handling by digitizing supply chain management, minimizing packaging, and reducing time at the point of purchase – something we can all appreciate when rushing through the self-checkout lane. When it comes to agricultural trade, PLU codes also help exporters and importers consistently and quickly identify and track products across the globe. Whether you purchase a Red Delicious apple in the United States, Mexico, or Vietnam, the PLU code is the same.

    USDA Research Chemist Dr. Gabriel Patterson pours one of the experimental home compostable adhesives to sticker backing during the research process. The team tested more than 100 formulas to determine the top three adhesive (photo by James McManus).

    Unfortunately, PLU labels have also created a sticky situation for composters, the environment, and even U.S. exporters. Why? PLU labels are not biodegradable, which means they contaminate produce that’s tossed in the compost pile or sent to commercial composting facilities. As a result, the produce generally ends up in landfills, which creates more food waste, increases methane emissions, and negatively affects climate change.

    Several countries, led by France and New Zealand, have enacted legislation that will require PLU labels to be certified home compostable. This has posed a challenge for U.S. exporters by creating a trade barrier that puts millions of dollars of U.S. fresh fruit and vegetable exports at risk. The U.S. Department of Agriculture (USDA) has stepped in to help solve the problem in an effort to help reduce trade barriers and mitigate climate change.

    With research and development funds provided by USDA’s Foreign Agricultural Service’s (FAS) Technical Assistance for Specialty Crops Program, FAS and USDA’s Agricultural Research Service are working to produce compostable PLU labels. FAS and ARS are collaborating with the International Fresh Produce Association (IFPA) and Sinclair Systems International to meet the EU standards. The goal is to develop adhesives that are both food-safe and compostable. When achieved, this will allow American companies to export fruits and vegetables as usual while helping to decrease food waste and methane emissions.

    Scientists at the USDA Western Regional Research Center in Albany, CA apply test and control PLU labels to grapefruits and sweet potatoes to evaluate their effectiveness (photo by James McManus).

    To date, the research team has tested more than 100 formulas to determine the top three adhesives that produce the desired biodegradation process. The team is performing final tests to confirm that these bio-based adhesives pass the home-compostable degradation test. They will then tackle scale-up adhesive coating trials as a key milestone toward commercialization.

    USDA has also coordinated closely with the IFPA on outreach and education to U.S. produce exporters to demonstrate the benefits of greener, environmentally friendly PLU labels and adhesives. Once implemented, the new PLU labels and adhesives will solve a sticky problem for U.S. exporters and ultimately help reduce methane emissions, another step towards more sustainable agricultural production and trade.