The conflict has damaged EU agriculture, with rising energy costs, supply chain disruptions, and fading household discretionary consumption contributing to a slowdown in economic growth. The Eurozone economic growth projection has been lowered from 3.9 to 2.8 percent for 2022, while other countries in the region, such as Germany and France, have also seen growth rates revised downward.
The US is expected to export a record $191.0 billion worth of agricultural products by 2022, while importing a record $180.5 billion. China is projected to be the largest US agricultural market, followed by Mexico and Canada. The EU is expected to see a significant increase in horticultural product imports, which are forecast to reach $92.2 billion, up $3.2 billion from the previous forecast in February.
The American agricultural sector posted its best export year ever in 2022, with international sales of U.S. farm and food products reaching $196 billion. Agriculture Secretary Tom Vilsack attributed this success to the Biden-Harris Administration’s efforts to create new and better markets for America’s agricultural producers and businesses.
Vilsack highlighted the importance of building stronger relationships with trading partners and holding them accountable for their commitments. He also emphasized the need for historic investments in infrastructure to strengthen supply chains and prevent market disruptions, the removal of trade barriers that hamper U.S. producers’ access to key markets, and continued investment in export market development programs, partnering with industry to bring high-quality, cost-competitive U.S. products to consumers around the world.
The value of sales increased in all of the United States’ top 10 agricultural export markets, with seven of the 10 markets setting new records. The top commodities exported by the United States in 2022 were soybeans, corn, beef, dairy, cotton and tree nuts, which together comprised more than half of U.S. agricultural export value. International sales of many U.S. products reached record values, including soybeans, cotton, dairy, beef, ethanol, poultry, soybean meal, distilled spirits, and distillers’ grains.
The American agricultural industry has set its sights on new growth opportunities in places like Africa, Latin America, the Middle East, and Southeast Asia. Overall, there were 30 markets where U.S. exports exceeded $1 billion in 2022, demonstrating the broad global appeal of American-grown products.
In conclusion, the ongoing conflict between Russia and Ukraine has had significant impacts on the agricultural sectors in both the EU and the United States. While the EU has seen a slowdown in economic growth due to rising energy costs and supply chain disruptions, the United States has been able to capitalize on disruptions in the European and Ukrainian markets, leading to increased agricultural exports. The American agricultural sector has posted its best export year ever, with international sales reaching a record $196 billion, and is expected to remain highly competitive in global agricultural markets in the future.
