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OVERVIEW 



U.S. growers produce incredible amounts of safe, wholesome and cheap food and fiber. U.S. 

 consumers pay little in comparison to the rest of the world for our food. This situation can only 

 exist if excess production is exported. There is a growing world population that must be fed. 



Food will determine the political power of the future. The world economy is growing. Initial 

 economic growth focuses on improving citizens' diets. The United States dominates the world 

 in production of most foods, fiber, and new uses of agricultural products. The future of 

 America's farmers and agricultural infrastructure depends on expanding into export markets to 

 meet the needs of food and fiber for the hungry of the world. Creation of food and fiber uses 

 renewable resources, protects the environment while creating wealth and not depleting natural 

 resources. 



In response to your question on what the market will look like and which countries will the U.S. 

 be trading, with I will venture to say the markets of the very near future will be many. The 

 United States has a strong role to play in providing for the demands of both developed market 

 economies with our high-quality food and fiber products and those of less-developed weaker 

 economies. 



I can assure you that the market for raw and value-added American agricultural products will 

 be worldwide. GATT and NAFTA will provide unlimited growth potential for high-value 

 agricultural products. 



According to a recent FAS study, four areas will be especially important over the next several 

 years. They are: 



• The Pacific Rim countries, especially Japan, Hong Kong, South Korea and Taiwan; 



• Canada, Mexico and the remainder of Central America; 



• The European Union; and 



• Russia and China. 



Why these areas? Because they are rapidly westernizing. 



• More women are entering the workplace, reducing the amount of time available for meal 

 preparation. 



• Household size is smaller, allowing consumer emphasis to focus on quality and variety 

 rather than quantity. 



• The middleclass is growing rapidly, creating more disposable income and focusing 

 attention on healthier, more convenient foods. 



What products will these countries be looking for that we can supply? 



• Fresh produce. 



• Frozen foods of all kinds, especially heat-and-eat, microwaveable products. 



• Processed meats. 



• Dairy products. 



• Snack and gourmet foods. 



What do we need to access these markets? 



• Good market research, pinpointing consumer trends, and aggressive pre-planning before 

 entering markets in developing nations. 



• Technical assistance for those companies that export and for those countries that import 

 to help both sides overcome artificial barriers of language, custom and business 

 practices which vary so widely from one country to another. 



• Strong, supportive flexible financial programs that will help American companies 

 maintain a strong presence long enough to build product demand in new markets and 

 meet the economic needs of developing countries. 



