HOUSTON State Agriculture Commissioner Susan Combs said Tuesday Texas is poised to become the hub of agricultural export trade because of its geographic location, but will only be successful if farmers and ranchers become “export ready.”
“We are next to Mexico, on an East Coast access and we are dead-smack in the middle of the country,” Combs said. “We are poised to be the center for transportation, transhipping and the first points of entry, but it’s going to take a certain amount of intellectual maturing for us to realize how widely situated we are.”
A number of agribusiness leaders and producers gathered here Tuesday for the International Agricultural Trade Summit at the Hyatt Regency International, which concludes Wednesday. The trade summit features global experts as well as agribusiness leaders and producers who are joining forces to develop new trade strategies in an effort to better market Texas agricultural products and commodities abroad.
Texas has a powerful selling mystique, Combs said. Texas producers need to brand their products, so consumers will recognize them.
She noted Texas is the sixth-leading state in total agricultural exports behind California, Iowa, Nebraska, Kansas and Illinois. Texas ranks No. 2 in total agricultural revenue and No.3 in live animal and red meat exports behind Nebraska and Kansas.
“We can do better,” Combs said. “We need to do better not just in all commodities, but the whole process.”
Gus Schumacher, United States Department of Agriculture Under Secretary for Foreign Agriculture Service, addressed the group earlier in the day. He highlighted several landmark events that have helped the United States export more agricultural goods, particularly the North American Free Trade Agreement.
“I think it’s the unsung story,” Schumacher said. “There was a lot of grouchiness at first, but in fact, it’s been one of the better success stories. We had $14 billion in exports and it’s created a lot of jobs. Here shortly, we will be an exporting force to Mexico, more so than we are to the European Union.”
Schumacher noted Texas is positioning itself to become a major customer for Mexico, exporting items such as meats, cheeses, and fruits. Texas beef producers also have an opportunity to capitalize on such trade as some 160,000 tons of beef were exported to Mexico last year.
“There are a 150 million people (in Mexico) that love Texas’ products,” Schumacher said. “The USDA is working closely with Susan Combs to facilitate this trade.”
Combs also noted the opportunities available via e-commerce — one of the fastest growing components of global sales. According to Parr Rosson and Flynn Adcock, economists at Texas A&M University, worldwide Internet sales for 2000 are expected to reach $1.3 trillion compared to just $50 billion in 1998. Business-to-business sales should reach $978 million in 2000, while business-to-consumer sales are forecast at $322 million.
Combs said a producer in Carrizo Springs receives 150 hits a day off the World Wide Web and sells seven to eight thousand bags of onions. The buyer pays for shipping.
“I think e-business is wonderful,” Combs said. “You’re seeing bulk commodities sold on the Internet. You’re seeing small commodities. Right now, you can do livestock sales both on the Internet and video. I think it’s very, very smart for every person in the sales business to get themselves a Web site.”
Combs closed her presentation by reminding everyone of a bumper sticker she saw recently. It read: “Support agriculture or eat recycled food.”
“The point is, agriculture in every country is what makes them strong and survive,” she said.
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