ATLANTA ─ As the pet food industry continues to expand globally, more and more pet food manufacturers are looking to expand their distribution into markets beyond US borders. By 2022, the United States will export more than $2 billion in pet food products, and according to Alexis Taylor, US Department of Agriculture (USDA) undersecretary for agricultural trade and foreign affairs, growth will continue. -export for pet food.
The pet food industry stakeholders who attended the American Feed Industry Association’s Pet Food Conference on Jan. 30, held in conjunction with the International Production & Processing Expo in Atlanta, had the opportunity to talk trade with Taylor and Ambassador Doug McKalip, chief agricultural negotiator for the Office of the United States Trade Representative (USTR). Two of the attendees made it clear that their agencies’ primary goal is to help US companies, including those in the pet food industry, find more trade opportunities overseas.
Ambassador McKalip explained that facilitating and expanding agricultural exports is truly a team effort between both USTR and USDA offices.
“The relationship between the office of the US Trade Representative and the USDA is very strong and that’s important because the USTR is involved in breaking down barriers to market access whether it’s tariffs or regulatory issues,” said McKalip. “And then, the USDA team can step in through promotion and help bring together willing buyers and willing sellers.”
Taylor added, “I think the relationship is really critical between USDA and USTR at all levels… Trade is about relationships ─ we’ve always talked about it as a trade ‘relationship,’ and it is what’s going on inside our agencies.”
US agricultural trade has broken records since 2021, and the agencies see no signs of that slowing.
“Next month, when the final trade figures for 2023 come out, it is set to be another very strong year. And exporting pet food to the US is a really important part of our overall export picture,” Taylor explained. “We’ve seen a lot of growth over the last five years in a number of ways. US food exports around the world [including pet food].”
Canada, China and Mexico continue to be the top three markets for US exports. Sixty percent of overall food and ag exports go to China, Mexico, Canada and the European Union. And while the United States will continue to support those markets, there is a push toward diversification and expansion in emerging markets, Taylor explained.
“We are seeing changing demographic trends around the world, and because of that, I think we also need to expand our emphasis to other parts and other regions around the world,” he said. “We’re looking at how we can support you as an industry and a sector to really take advantage of some of the new market opportunities for growth. I think diversity is an important tool.”
In October 2023, USDA announced a new program ─ Regional Agricultural Promotion Program (RAPP) ─ to invest $1.2 million over the next five years to help expand growth markets. Some areas of the world where the United States sees growing trade opportunities include Africa, Latin America, the Middle East and Southeast Asia.
Southeast Asia, in particular, is a significant growth region that offers export opportunities for US manufacturers. The area is seeing rapid growth in gross domestic product and an expanding middle class economy.
“And we know, as consumers grow into that middle class, that they’re also thinking about their pets and their pets’ diets,” Taylor said. “I think that’s a great opportunity for our US pet industry.
“What we know is that by getting into those markets early, we can build lifelong buyers of US food and ag products,” he added.
Pet food manufacturers still looking into export options can look to the USDA and USTR for tools, information and other ways to get involved. Pet food companies are invited to participate in trade missions around the world ─ in person and virtually. In addition, the USDA supports several trade shows around the world, where US pet food companies are encouraged to participate.
Before entering the export arena, Taylor recommends learning about the market, the existing products and the buyers.
“First of all, understand what buyers are looking for ─ that’s one of the things we focus on during our trade missions,” explains Taylor. “We do market intelligence, bring in market experts from that area to help understand market dynamics, and we look at products that are already out there.”
USDA also offers reports on various markets around the world, including country spotlights, which include highlights on the regulatory environment in each country.
“That’s why we’re here, to help companies like yours understand what’s going on, on the ground, in those markets,” Taylor explained. “Hopefully I can make connections and open doors to help facilitate what’s needed for all of you to expand those export opportunities.”
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