Rolling pastures, football field-long chicken houses and farmers markets may
still be the idyllic image of Georgia agriculture in the public mind.
But an accurate picture of the state's multi-billion dollar industry
should include barges shipping out of the Port of Savannah on their way to
international destinations like Hong Kong and Mexico.
The value of chickens, pecans, cotton and other agricultural items
sailing out of Savannah packed in steel freight boxes increased by 129 percent
in the last six years, from $1.15 billion to $2.64 billion.
"Georgia is becoming the breadbasket for the world," said University of
Georgia College of Agriculture and Environmental Sciences Dean J. Scott Angle
at the 2013 Farm to Port Georgia Ag Forecast at UGA on Friday. "But to do
that, we have to get our products out to people who can buy them."
Of all the Georgia-produced goods shipping out of Savannah, 39 percent
are agricultural, said Georgia Department of Economic Development
International Trade Manager Shehzin Jafar.
And according to preliminary data from 2012, exports of multiple
agricultural products increased by 50 percent last year.
While the bulk of agricultural production in the state still ships to
domestic markets, the optimistic talk at Friday's ag forecast showed the
industry's sharp focus on growth.
Poultry, pork and especially beef consumption has peaked in the U.S., so
if Georgia's producers want to expand business, they must increasingly turn to
the global marketplace.
Production of those commodities has trailed off domestically due to
slowing demand and higher input prices, said USA Poultry and Egg Export
Council president Jim Sumner. But global consumption of pork and chicken
continues to climb.
"Producing for export is the only justification for the industry's
expansion," Sumner said, noting that the broadening middle class in countries
like India and China will consume greater amounts of meat, representing a
tremendous opportunity for Georgia agribusiness.
Sumner's presence at the forecast underscored how important poultry
production is to the state's economy, making up 36 percent of Georgia's total
agricultural value.
Sumner said the countries to which Georgia exports chicken has
diversified greatly in the last three years, with Mexico, Cuba and Hong Kong
becoming important markets. The U.S. competes only with Brazil for chicken
production, Sumner said, and has increasingly partnered with the South
American country to open new markets.
The partnership makes sense, according to numbers Sumner provided, since
there are plenty of customers still to be reached. Per capita, chicken
consumption is relatively low in India and China. If American chicken can make
inroads into those markets, "We won't have to look back," Sumner said.
Underneath many of the speakers optimistic outlooks is a weather-based
reality. Drought in 2012 sent grain prices soaring. Coupled with a lowered
domestic demand for poultry, pork and beef, Georgia's agricultural economy is
directly tied to the plight of soy and grain farmers in the Midwest.
If the Great Plains can fend off another year of drought, UGA Center for
Agribusiness and Economic Development Director Kent Wolfe said, feed grain
prices should drop and translate into greater profits for Georgia producers.
Not all the talk focused on Asia, Brazil or the Midwest.
Northeast Georgia's place in the state's agricultural economy should not
be overlooked, said UGA's Cooperative Extension Program Coordinator Bobby
Smith. Eight of the state's 10 biggest chicken-producing counties are in the
region, as are three of the five biggest cattle producing counties.
"The next time you think of northeast Georgia, don't just think about the
mountains and the Piedmont," Smith said. "Think about the agricultural
contribution the region makes to the state."
___
Distributed by MCT Information Services
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News Column
Path to Exports Key to Georgia Agribusiness Growth
Jan 28 2013
Andre Gallant
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Source: (c) 2013 Athens Banner-Herald (Athens, Ga.)
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