va agriculture & forestry · saudi arabia, $80m egypt, $79m venezuela, $76m taiwan, $75m united...

VA AGRICULTURE & FORESTRY: BUILDING DOMESTIC CAPACITY,

EXPORTING TO THE WORLD

VIRGINIA ECONOMIC DEVELOPERS ASSOCIATION

2014 GOVERNOR’S CONFERENCE ON ECONOMIC DEVELOPMENT

VIRGINIA SECRETARY OF AGRICULTURE & FORESTRY

TODD P. HAYMORE

OCTOBER 9, 2014

DISCUSSION OVERVIEW

Economic Power of Agriculture & Forestry

What We Did

Successes Achieved

Where We Go From Here

STATEWIDE IMPACT OF AG & FORESTRY

Two of Commonwealth’s Largest Industries

Economic Impact: $70b Revenue Annually

>$52b from Agriculture; >$17b from Forestry

Provide >400k Jobs Via Production, Value-

Added & Ripple Effect Industries

More Than 10% of all VA Jobs; Every

Industry Job Supports 1.5 Jobs Elsewhere

MCDONNELL 2010 DECISION

Full Integration of Agriculture, Forestry

Industries into VA’s Economic Development,

Jobs Creation Agenda

First Governor in Modern VA History to Create

Strategic Plan for State’s Largest Industries

VA Ranked “Best for Business” Already; Make

State the Most Pro-Ag & Forestry in U.S.

SECRETARIAT FOCUS, STRATEGIES

Act as Chief Marketing & Development Officer

Push “Best for Business” Designations

Utilize State Government Partners: “No Silos”

Partner w/Private Sector Here, Abroad

Engage U.S., Foreign Governments

Capitalize on Diverse Market, Product Portfolios

Increase Marketing Staff, Global Presence

SECRETARIAT TOP PRIORITIES

Domestic Development

Expand Existing Operations

Recruit New Businesses to Virginia

Build Domestic Capacity for New Exports

International Marketing & Exports

Expand Virginia’s Global Footprint

Increase Exports to Key Growth Markets

New Exports Build Domestic Capacity

DOMESTIC DEVELOPMENT: NEW CAPACITY

Governor’s Agriculture & Forest Industries

Development Fund (AFID)

Why? Ag, Forestry Were ‘Falling Through Cracks’

$2.5m Incentive Fund for Econ. Development, Planning

Use for Recruitment, Expansion of Businesses

Focus on Processing and Value-Added Projects

30% VA Grown Purchase Mandate Key for Ag Growth

No Export Directive, But Connections Are There


AFID Development Grants Launched in Late ‘12

Fifteen Projects So Far: 12 Agricultural, 3 Forestry

Private Investment: Over $139 million

Jobs Created: 1247, Mostly in Rural Areas

Average Use of Virginia Grown Products: 70%

Virginia/AFID Investment: $1.45 million

AFID FACILITY GRANTS


AFID Planning Grants Launched in Spring ‘13

19 Projects Covering 45 Localities So Far

AFID Investment: Approximately $404,000

Up to $250k annually awarded on a rolling basis

$20k for Single Locality, $35k for Regional Project

Assist Planning, Study, Local Initiative to Grow, Support Ag, Forestry-based Businesses

Implementation by Board, Committee, Working Group


New Specialty Crop Research Funds

Opportunities in Non-traditional Production: Sesame,

Chickpeas, Barley, Hops

New Purchase of Development Rights, Agricultural

Stewardship Program Funds

Preserving Farmlands, Protecting Natural Resources

New Boards of Director Memberships

VA Economic Development Partnership, VA Rural Center

IMPORTANCE OF AG, FORESTRY EXPORTS

Globalized Economy: Jobs, Opportunities Here

USDA: Exports Now Generate Nearly 30% of Annual Farm, Forest Cash Receipts

Every $1.00 From Exports Returns $1.40 To In-State Support Activities: Processing, Packaging, Financing, Shipping, etc.

Export Related Jobs Pay ≥15% Than Other Jobs

>90% of World’s Customers Outside of U.S.

VALUE OF AG & FORESTRY EXPORTS

Record $2.85 Billion Exports in 2013 More Than 8% Increase Over 2012 Level

Challenges: Falling Commodity Prices, Political Instability

Strategic Focus Region, Other Highlights Lumber, Logs, Soy, Wine, Seafood to China, Hong Kong

Wood Pellets, Wine, Specialty Foods, Seafood, Leaf Tobacco to U.K., European Union, Switzerland

F.G. Soybeans, Specialty Foods to Japan, S. Korea

Lumber, Peanuts, Grains, Seafood to Vietnam

Lumber, Soybean Oil, Apples, Specialty Foods to India

VIRGINIA’S TOP A/F EXPORT MARKETS

China, $580 million

Canada, $259m

Switzerland, $190m

Russia, $117m

Indonesia, $110m

Vietnam, $83m

Saudi Arabia, $80m

Egypt, $79m

Venezuela, $76m

Taiwan, $75m

United Kingdom, $69m

Poland, $56m

Turkey, $48m

Mexico, $45m

Morocco, $45m

Ireland, $44m

Italy, $41m

Netherlands, $40m

Malaysia, $39m

Cuba, $38m

VIRGINIA’S TOP A/F EXPORTS

Soybeans & Meal, $986m

Leaf Tobacco, $272m

Wood Products (logs,

lumber, etc.), $270m

Grains (wheat, corn,

barley, etc.), $198m

Poultry, $186m

Processed Food &

Beverages, $178m

Soybean Oil, $115m

Animal Feed, $91m

Wood Pellets, $73m

Pork, $72m

Cotton, $44m

Seafood, $39m

Raw Peanuts, $28m

Animal Fats & Oils, $27m

COMMITMENTS TO EXPORT GROWTH

New State Funds for Trade Reps in Key Markets

More Than $3m in International Marketing Since ‘10

New Marketing Offices in China, India, UK, Russia,

Mexico, Costa Rica, Canada

All Supplementing Existing Hong Kong Office

Gubernatorial/Secretariat International Missions

VDACS Division of Marketing & Development

Trade Missions/Reverse Trade Missions

Fill Gaps Where Governor, Secretary Can’t Visit

COMMITMENTS TO EXPORT GROWTH

Advocating Open & Fair Trade Policies

Colombia, Panama, S. Korea FTAs

T-TIP, TPP Negotiations

Battling Artificial International Trade Barriers

China: Hard/Soft Logs, Poultry

India: Lumber, Leaf Tobacco, GMO Products

EU: Wood Pellets – Keep As Approved Renewable Fuel for Heat, Energy Generation

Creating Governor’s Conference on Ag Trade

NEW EXPORT GROWTHS, SUCCESSES

More Than $750m in New Export Deals Since VA Ag/Forestry Export Initiative Implemented

27% Increase in Ag, Forestry Exports Value

From $2.24b in 2010 to $2.85b in 2013

Growth in Strategic Focus Regions

China – 210% Sales Increase in 4 Years

Latin America – 60% Increase Overall in 4 Years

European Union, Switzerland – 30% Rise

India – 61% Growth

SECRETARIAT EMPHASIS IN 2014

Gov. McAuliffe SOTC Address: “Make VA the East

Coast Capital for Ag, Forestry Exports”

Facilitate New Export Opportunities

Move from “Building to Utilizing” Global Network;

Add to Existing Infrastructure?

Trade Missions, Reverse Trade Missions

Examine Targeted Growth Regions, Commodities

Promote Domestic Development = New Capacity

Increase Port Utilization, Development Efforts

2014 TRADE MISSIONS

Gubernatorial Missions

Europe – United Kingdom

Southeast Asia – China (2), Japan, S. Korea, HK

Secretariat, VDACS Lead Missions

China, Japan, Vietnam, Hong Kong, Malaysia, India, United Kingdom, France, Spain, Belgium, Canada, Cuba, Costa Rica, Others?

Reverse Trade Missions

Delegations from China, Japan, Canada, Europe, Others?

FUTURE TARGETED GROWTH REGIONS

Southeast Asia

Vietnam, Indonesia, Malaysia, Philippines, Thailand

Fast Growing, Reasonably Stable Markets

>$250m in VA Ag, Forestry Exports in 2013

Between 10-40% Growth vs. 2012 Figures

Lumber, Logs, Peanuts, Containerized Soy, Other Feed

Products Fueling Growth

All Countries Are Up First 5 Months 2014 vs. Same

Period 2013

FUTURE TARGETED GROWTH REGIONS

Mediterranean – Northern Africa

Turkey, Morocco, Egypt, Tunisia, Saudi Arabia

Large, Lucrative, Volatile, Politically Sensitive Markets

>$270m in VA Ag Exports in 2013

Soy Oil, Corn, Other Grains Fueling Growth

All Countries Are Up First 5 Months in 2014 vs.

Same Period in 2013

BUILDING DOMESTIC CAPACITY

Continue Growing AFID Facilities, Planning Grant

Program

Increased Exports: Building Domestic Capacity

Other Emerging Opportunities:

Craft Beer

Industrial Hemp

Agri-tourism

Competitive Forestry Industry Policies

PORT UTILIZATION, DEVELOPMENT

Partner w/Transportation Secretary, VPA to

Promote “State’s Top Asset” Here, Abroad

Support Existing Agribusiness Growth Efforts

Recruit New A/F Businesses, Related Industries

Turn Non, Under-Utilized Port Terminals, Facilities

into Working Assets

New Investments in Working Assets

Commonwealth of Virginia

Agribusinesses, Railroads, Related Support Companies

CONCLUSION

Infrastructure for Continued Growth, Successes In

Place for Virginia Agriculture, Forestry Sectors,

Exports…

Top Quality Producers, Products, A/F Businesses

Ag, Forestry Industries Integrated Into Overall

Economic Development, Jobs Creation Agenda

Governor Fully Committed to Building on Existing

Network, Successes of Previous Administration

CONCLUSION

Infrastructure for Continued Growth, Successes In

Place for Virginia Agriculture, Forestry, Sectors,

Exports…

Global Trade Office Network; Add New Regions?

World-Class Port System; Potentially Expanding?

Governor’s AFID Fund Building Capacity

Commitment to New Production, Sustainability

Virginia “Best for Business” Rankings, Reputation

CONCLUSION

Thanks!

TODD P. HAYMORE

SECRETARY OF AGRICULTURE & FORESTRY

[email protected]

(804) 692-2511

va agriculture & forestry · saudi arabia, $80m egypt, $79m venezuela, $76m taiwan, $75m united...

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