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Testimony of Eugene L. Bovee -2- 



June 23, 1994 



We believe the U.S. government needs to develop sound, economically viable strategies for 

 maintaining and developing new export markets over the long-term. Key components of this 

 strategy must involve marketing and financing. 



It appears the world market place is going to demand more value-added food products. As 

 incomes increase, demand for higher protein foods increases in developing countries. In 

 developed countries, demand for convenient, lower-fat and more specialty foods is 

 increasing. The implications are that farmers, ranchers, cooperatives, and agribusiness may 

 need to change the types or mix of products they produce and market. High value products 

 are the future for the export market. The U.S. is uniquely situated to take advantage of these 

 high-value opportunities but also to profit from continued demand for bulk agricultural 

 commodities in a number of traditional markets. 



The financial indjstry is also becoming more global in scope. Lenders must be flexible and 

 form strategic alliances to be of maximum service to their customers. As bankers, we no 

 longer operate in merely a U.S. economy. Today's economic issues all have global 

 implications, and the risk and capacity to accept risk are also global. It is a global economy. 

 It is more competitive than ever. Trade agreements will facilitate freer trade and provide 

 more opportunities in the long-term, especially for U.S. agricultural exports. It is important 

 that exporters, financial institutions, the USDA and other interested parties work together to 

 develop the means to participate in this growing market. 



Exporting requires an ongoing, long-term commitment. It is not a short-term, sporadic 

 solution to selling excess supply, nor should it be viewed as a politically correct and popular 

 business venture to fix a problem in the home territory. 



