990258 U.S. Farm Exports Fall 10% In '98 to 4-Year Low

Washington - U.S. farm exports, which have been battered by shaky foreign markets and large world crops, fell nearly 10% in 1998 to the lowest level in four years, the U.S. Commerce Department said Friday.

Led by sharp drop in soybean, coarse grain and other bulk commodities shipments, total agricultural product exports fell to $50.6 billion in 1998.

It was the second year of decline since the record set in 1996 of $59.3 billion and the poorest showing since 1994, when agricultural exports totaled only $44.9 billion, according to Commerce Department data.

U.S. agricultural imports declined fractionally in 1998 to $35.2 billion. But the sharp drop in exports reduced the U.S. agricultural trade surplus to $14.9 billion, down 9% from 1997 and the lowest level since at least 1991.

In 1996, record U.S. agricultural exports exceeded imports by $26.1 billion.

While overall U.S. bulk commodity exports fell 16% in 1998, rice exports soared nearly 30% to $1.2 billion dollars, the U.S. Agriculture Department said.

Soyoil stood out among processed commodities, with U.S. exports rising 54.6% in 1998 to a record $908 million. But overall shipments of processed farm goods dipped more than 6% in 1998, the department said.

Consumer-ready food product exports declined 4%, led by a 10% drop in poultry meat and a 12% drop in fresh fruit. The exceptions in that category were cereal, wine and beer and nursery product exports, which grew moderately.

On the import side, consumer-ready food products once again dominated the picture with the sharpest increases for fresh fruit, cheese and other dairy products.

Consumer-ready products account for about 60% of total U.S. agricultural imports, with the rest divided between bulk and processed goods.

Wheat imports, which have been a source of tension with Canada in recent years, declined to $284 million in 1998, from $359 million the prior year.

However, most of that decline could be due to lower prices rather than fewer bushels being shipped.

Coffee imports soared 16% to $3.6 billion in 1998, from $3.1 billion in 1997, as Americans continued their love affair with the caffeine-loaded bean.

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