Cooperative exports decline in 2001; bulk
sales fall but continue to dominate sector
By Tracey L. Kennedy,
Agricultural Economist
USDA Rural Development
Editor’s note: USDA’s Rural Business-
Cooperative Service began an annual
survey of cooperative involvement in
international markets in 1997. Prior to
then, cooperative exports and imports were
measured at five-year intervals. An
overview of survey findings for 2001 is
presented here.
gricultural exports by
U.S. cooperatives in
2001 dropped by more
than 13 percent, to $5.07
billion, from 2000, but
still topped 1998 and 1999, when the
global currency and financial crises still
plagued world markets. A 25 percent
decrease in sales of bulk commodities
in 2001 was wholly responsible for the
overall decline.
The total for all U.S. agricultural
exports was $53.6 billion, an increase of
almost 5 percent from 2000. While
trends in U.S. trade continue to point to
the increased importance of consumer related
products relative to bulk commodities,
exports by U.S. cooperatives
remain concentrated in bulk products. Of
the total for cooperatives in 2001, $2.96
billion, or 58 percent, consisted of bulk
commodities (mainly grains, oilseeds and
cotton). Bulk sales account for about 35
percent of all U.S. agricultural exports.
Consumer-oriented or high-value
products (meats, dairy products, tree
nuts and fresh and processed fruits and
vegetables) accounted for $1.81 billion,
or 36 percent, of total exports by cooperatives,
compared to 42 percent for all
U.S. exports.
Intermediate products (ingredients
and partially processed products, such
as flours, meals, oils, prepared feeds
and animal byproducts) accounted for
$290 million, or 6 percent, of cooperative
exports, compared to 23 percent
for all U.S. ag exports (figure 2). Cooperatives
also reported $61 million of
exports of non-agricultural products
(farm production supplies and fisheries
products) in 2001.
Sales concentrated
among few, large co-ops
Among the 81 cooperatives reporting
to USDA on their export sales in 2001,
exports continued to be concentrated
among a few of the largest cooperatives.
Just six cooperatives each having sales of
greater than $100 million were responsible
for 73.5 percent of all exports by
cooperatives. Those six cooperatives represented
a range of agricultural products
and geographic areas. The magnitude of
exports among individual cooperatives
continues to be diverse, ranging from less
than $10,000 to almost $2 billion.
Co-op share of U.S. exports
Cooperatives’ overall share of U.S.
agricultural exports for 2001 was approximately
9.4 percent, down from 11.4
percent in 2000. The co-op share for
bulk commodities was 15.7 percent,
down from 21.5 percent the previous
year, while exports of consumer-oriented
products accounted for 8 percent of U.S.
consumer exports, up slightly from 7.5
percent in 2000. Intermediate product
exports from cooperatives had a 2.4 percent
share, up slightly from 2.1 percent.
Broad recovery while
market shifts continue
Exports by cooperatives showed
improvement across two of three major
product categories in 2001 (figure 3).
Bulk commodity sales continue to be
volatile, falling by more than 25 percent
in 2001 after recent showings of both
sharp decreases (54 percent in 1998)
and increases (47 percent in 2000).
A sharp decline in cooperative sales
of wheat in Asian markets was responsible
for the drop in 2001, while other
bulk products, such as cotton and
coarse grains, showed significant gains.
U.S. exports of bulk commodities
showed much more modest change
over the same period.
Consumer-oriented products continued
to gain ground, following on a
percent increase in 2000 with a gain of
almost 12 percent, to $1.8 billion, in
2001. In contrast, U.S. sales of consumer
related exports rose just 3.6 percent
in 2001. Gains in meats, dairy
products and tree nuts drove cooperatives’
increase, while fruit and vegetable
products fell off slightly.
Intermediate products, which had
shown significant volatility in the late
1990s, recovered from a 50-percent
decline in 2000 with a 23-percent
increase, to $290 million, in 2001. This
was mainly on the strength of increases
in prepared feeds and oilseed meals.
U.S. sales of the same commodities
have shown modest increases in the
past two years.
Asia, Latin America still top markets
Asia continued as the most important
regional destination for cooperative
exports in 2001, accounting for 37
percent, or $1.95 billion, of co-op
exports. But that was down from $2.46
billion, or 41.5 percent, of the total in
2000. Latin America’s emergence (primarily
Mexico) as a primary market
continued in 2001, taking in $1.36 billion
(26 percent) worth of cooperative
exports. That compares to $1.41 billion,
or 23.6 percent, the previous year.
European destinations recovered
somewhat in 2001, accounting for $628
million, 12 percent, of cooperative
exports. That compares to $532.4 million,
8.9 percent, in 2000. African markets
lost some ground in 2001, with
$401 million in export sales there compared
to $600.7 million in 2000, a drop
from 10.2 percent to 8 percent.
