1. Why Iowa farmers need export markets
Microsoft photo
Original 9/12/08 Joel Severinghaus
Modified 1/28/17 Chad Hart

2. Why do Iowa farmers need export markets?
That’s where the customers are
That’s where the economic growth is
That’s where the consumption growth is
We produce surpluses
We only eat high on the hog
Exports are crucial to Iowa farm income

3. That’s where the customers are
Wal-Mart photo
In China since 1996, 426 stores
Walmarts, Sam’s Clubs, and Neighborhood Markets

4. True or false? 1. Two-thirds of the people on this planet are Asian.

5. 95% of the world’s population lives outside the US
Source: CIA World Factbook

6. True or false?
2. China, India, and Indonesia have the three largest populations.
False.
The US is # 3.

7. Top 10 populations
Source: CIA World Factbook

8. True or false?
3. Over the next 40 years, the highest population growth rate will be in India.
False.
In Africa.

9. Population growth 2017 to 2050
Source: U.S. Census Bureau, International Data Base

10. That’s where the economic growth is
Hong Kong

11. True or false?
4. Pakistan’s economy is growing faster than the US economy.
True.

12. Economic growth rates
Source: CIA World Factbook

13. Sources of US petroleum imports, 2015
Source: U.S. Energy Information Administration

14. Size of economy
Source: CIA World Factbook

15. Chinese economic growth: 1990
Beijing

16. Chinese economic growth: 2005
mcchronicles.blogspot.com photo
AP photo
Dongguan, Dec. 10, 2005: McDonald’s opens first drive-thru in China; half of the 100 restaurants plan to open each year will have drive-thrus

17. Chinese economic growth: 2008
1000 more cars added to the streets of Beijing every day

18. Chinese economic growth: 2011 More than 2,000 McDonald’s in China
Open 24 hours
Delivery 24 hours
More than 2,000 McDonald’s in China

19. 10 largest economies (GDP rank)
2017
China US
India
Japan
Germany
Russia
Brazil
Indonesia UK
France
2020
2030
2040
2050 US
China
Japan
India
Germany
Brazil
France
Russia UK
Mexico
Italy
Indonesia
Canada
Source: PwC, The World in 2050, January 2011

20. True or false?
5. There are more middle-class consumers in India than in the US.
True.

21. “Middle class” population growth in developing countries 2009 to 2030
India’s middle class already out-numbers total US population
Source: OECD, , The Emerging Middle Class in Developing Countries, Homi Kharas, January 2010

22. 12 countries over 100 million population
Bubble size:
population in 2017
Sources: CIA “World Factbook”, U.S. Census Bureau

23. That’s where the consumption growth is
Hong Kong

24. Trends in US protein consumption
Source: USDA Economic Research Service “Food Availability” data sets

25. True or false? 6. The highest pork consumption growth is in Mexico.

26. Pork consumption growth
Source: USDA Foreign Agriculture Service PSD Online 1/28/17

27. Chicken consumption growth
Source: USDA Foreign Agriculture Service PSD Online 1/28/17

28. True or false?
7. Beef consumption in India has doubled in the past 20 years.
False, but it’s close.

29. Beef consumption growth
Source: USDA Foreign Agriculture Service PSD Online 1/28/17

30. Religion in India
They eat beef in India? The Hindus don’t, but some of the Muslims do.
About 150 million people --
third largest Muslim population
after Indonesia and Pakistan
Source: CIA World Factbook

31. True or false?
8. Milk consumption in India is growing faster than in China.
True.
But it depends on the time frame.

32. Fluid milk consumption growth
Source: USDA Foreign Agriculture Service PSD Online 1/28/17

33. Over 1,600 Pizza Hut restaurants

34. Baskin Robbins has 90 locations in China,
Plans for 249 more locations over the next 10 years

35. 581 Subways in China

36. More than 2,300 Starbucks

37. True or false?
9. China consumes more soybean meal than the US.
True.

38. Soybean meal consumption
Source: USDA Foreign Agriculture Service PSD Online 1/28/17

39. Corn consumption
Source: USDA Foreign Agriculture Service PSD Online 1/28/17

40. We produce surpluses
Heart of Iowa Co-op, Nevada

41. True or false? 10. We export about a fifth of the US corn crop. False.
But we previously did.

42. US corn use
Source: USDA WASDE reports

43. True or false? 11. We export about a tenth of US dairy production.
Now about 20%.

44. Export share of US production, 2016
Source: USDA WASDE

45. True or false? 12. Japan is our # 1 ag export market. False.
Used to be, before NAFTA.

46. Top ten US ag export markets, 2015
Canada & Mexico buy % of US ag exports
Source: US Census Bureau, Foreign Trade Statistics, FATUS export aggregations

47. Agricultural trade with Canada
NAFTA
Two-way trade up 393% since NAFTA
Source: US Census Bureau, Foreign Trade Statistics, FATUS export aggregations

48. Agricultural trade with Mexico
NAFTA
Two-way trade up 517% since NAFTA
Source: US Census Bureau, Foreign Trade Statistics, FATUS export aggregations

49. Exports are crucial to Iowa farm income
Microsoft photo

50. True or false?
13. Iowa ranks # 3 in state ag exports.
False.
# 2.

51. Top 10 ag exporting states, 2015
7.5% of $133 billion total US ag exports
Source: USDA Economic Research Service, “State Export Data”

52. True or false? 14. Exports equal about 15% of Iowa farm cash receipts.
More like 35%.

53. Iowa agricultural exports
Source: USDA Economic Research Service, “State Export Data”

54. True or false?
15. Iowa exports billions of dollars worth of corn and soybeans.
True.

55. Iowa’s state export rankings, 2015
# 2 Soybeans $2.516 billion
# 1 Pork $1.988 billion
# 1 Feeds $1.506 billion
# 1 Corn $1.398 billion
# 2 Soybean meal $639 million
# 2 Vegetable oils $392 million
# 4 Beef $356 million
# 2 Hides $293 million
# 12 Dairy $122 million
Source: USDA Economic Research Service, “State Export Data”

56. Iowa’s top 10 manufactured exports, 2015
1. Tractors $764 million
2. Herbicides million
3. Aircraft engines/parts 264 million
4. Harvesting machinery 259 million
5. Aluminum alloy plates 250 million
6. Front-end loaders million
7. Special purpose vehicles 152 million
8. Excavators million
9. Ag/Hort/Forestry mach. 116 million
10. Medical instruments million
Source:

57. 1 in 3 John Deere Waterloo Works tractors is exported
131 tractors on 49 railcars, crossing Nebraska, bound for China, 5/08

58. Significance of Iowa’s manufactured exports
Exports support 7.1% of total private-sector employment, and 21.2% of total manufacturing employment
2,447 Iowa companies export
82% of Iowa exporters are small & medium-sized enterprises (less than 500 employees)
Source: USDOC ITA “Iowa: Exports, Jobs, and Foreign Investment” 12/11

59. Top 3 US soybean export markets
Source: USDA-FATUS

60. So why do Iowa farmers need export markets?
That’s where the customers are
That’s where the economic growth is
That’s where the consumption growth is
We produce surpluses
We only eat high on the hog
Exports are crucial to Iowa farm income

61. Population vs. arable land
share of global share of global
population arable land
China 19% 5%
India 17% 10%
US 4% 13%

62. Arable land