8/14/2015 10:30:43 AM
Manufactured goods make up the lion’s share of Minnesota’s exports, but the world has a healthy appetite for the bounty of Minnesota’s farms. We’re the nation’s 3rd-largest agricultural exporter, selling $8 billion in foreign markets in 2013.
And as Gov. Mark Dayton and a delegation have seen firsthand during a week-long trade mission that comes to an end today, demand for Minnesota products has risen dramatically in Mexico. In fact, our southern neighbor has become the state's second-largest export destination, surpassing China. Two-way trade between Minnesota and Mexico has risen to more than $4 billion a year.
But there’s still plenty of room for growth – and agriculture is one of the most promising sectors. Minnesota is the nation’s 9th-largest exporter of agricultural products and food to Mexico – and the amount of food we export there has been increasing.
In fact, Minnesota’s sales of processed food and agricultural commodities to Mexico was up more than 77 percent in 2014, compared to the year before. Minnesota exported $592 million worth of food to Mexico last year.
Signs of growth abound in Minnesota’s agricultural exports to Mexico. Since 2013:
Soybeans are Minnesota’s top export commodity and Mexico is Minnesota’s 2nd-largest market for soybeans. Mexico is also Minnesota’s 2nd-largest market for corn and wheat.
Minnesota leads the nation in turkey production, raising 45 million birds each year and generating $866 million in revenue annually. Turkey production accounts for 62 percent of the state’s total poultry production.
Mexico has been Minnesota’s top market for turkey exports (64 percent of market share). It also has been the state’s top market for poultry in general (at 23 percent of market share).
This past spring, the worst outbreak of avian influenza in U.S. history swept through Minnesota and more than a dozen other poultry producing states. In response, more than 40 countries – including Mexico – halted their poultry imports.
A bird flu vaccine for turkeys is being studied. Meanwhile, Minnesota’s poultry industry is recovering. Poultry farmers are making sure affected farms are disease free, restocking and ramping up again for production.
Minnesota’s livestock exports reached a record high of $1.6 billion in 2013, the latest data available. Pork is the top livestock export at $737 million, followed by dairy at $307 million, and beef at $149 million. Mexico is Minnesota’s 2nd-largest export market for pork and beef – and its top export market for dairy and poultry.
Companies increasingly see Mexico as a cost-competitive alternative to China on many fronts: wages, logistics, proximity, ease of doing business. As a result, Mexico’s economy is growing as executives move manufacturing operations there.
Rising incomes in any country are often followed by increased demand for imported food, goods and services. Given Mexico’s strong and rising demand for our state’s agricultural bounty (and other exports), continued economic growth for our southern neighbor bodes well for Minnesota.
Gov. Dayton and delegation ended the trade mission by witnessing the formalizing of cooperative agreement between St. Cloud State University and CETYS University in Guadalajara.
Dr. Earl Potter, president of St. Cloud State, and Dr. Fernando Leon-Garcia, president of CETYS University, signed the memorandum of understanding, which paves the way for the universities to exchange scholars, students, academic information and other materials. The exchange will benefit scholars and students and enhance research and the educational process at both institutions.
Dr. Earl Potter, president of St. Cloud State, and Dr. Fernando Leon-Garcia, president of CETYS University, sign a cooperative agreement as Gov. Dayton and Steven Rosenstone, chancellor of the Minnesota State Colleges and Universities system, look on.
Gov. Dayton and the delegation toured some impressive business and high-tech facilities during the trade mission, including Best Buy Mexico, the Guadalajara Software Center, Intel's Guadalajara Design Center and Grupo FH, which provides integrated logistics and international trade services throughout the complete supply chain. Get the lowdown on what they saw.
The delegation gets a tour of Intel's Guadalajara Design Center.
