Page Two	E-mail PagePrint Version

WASHINGTON, DC - 07/13/06 - California remained the nation's top agricultural exporting state in fiscal 2005, far surpassing all others as its $10.2 billion of agricultural exports is up 7% or $680 million, from 2004.

According to the US Foreign Agricultural Service (FAS) of the US Departnment of Agriculture, California accounts for a full 16% of the total value of all US agricultural exports.

The state leads the country in exports of vegetables and preparations, fruits and preparations, tree nuts, dairy products, planting seeds, and "other products," the agency said.

California's exports of each of those commodities are 2-3 times higher than the next closest state.

US almond growers have found larger markets in Europe as a severe drought in Spain continues to depress its crop production.

Nearly half of California's "other product" exports is comprised of wine, with the rest primarily composed of essential oils and nursery and greenhouse products.

Nationally, fiscal 2005 agricultural exports were just over $62 billion - slightly above the record set in 2004.

Soybeans and products remained the largest valued US agricultural export at nearly $9 billion-down roughly 2% from 2004. Shipments of soybean meal grew by 40% from 2004-05 while soy oil shipments grew by 21%.

Feed grains and products remained the second largest valued agricultural export despite a sharp decline from 2004-05.

Nearly all this decline is related to corn as export values dropped from nearly $6 billion in 2004 to $4.7 billion in 2005. That's nearly 16% below the 2004 level but more in line with previous values.

Wheat export values are down 11% over last year at $5.9 billion. The decline is largely due to large US and global supplies which lowered prices and created stiff competition, the FAS said.

Despite the $765-million drop from 2004 levels, wheat remains the third largest US agricultural export group in fiscal 2005.

Concerns about animal health issues continue to challenge global meat trade.

Major shifts in meat trade occurred in 2004 due to the discovery of Bovine Spongiform Encephalopathy (BSE) - also known as mad cow disease - in the US and Canada and avian influenza in Asia.

Beef exports from the US to Japan and South Korea have yet to fully resume. As a result, beef export values are about $300 million below 2004 levels.

High hog prices, resulting from strong export demand as pork substitutes for beef, and strong export demand for lamb and other animal products, have raised export values for live animals and meat by more than $500 million.

Poultry exports have risen almost 20% from 2004 to 2005. Dairy exports rose 30% over 2004 levels as they did from 2003-04.

Cotton exports are down nearly 15% from 2004 levels. In spite of strong global demand, weak prices drove export values down $660 million.

Exports to China currently account for roughly one-third of the volume of US cotton exports, a significant percentage of which are generated in California's fertile Central Valley region.

Go back, or read the latest Page Two stories:

MEXICO LIFTS CALIFORNIA LETTUCE BAN

MEXICO CITY, Mexico – 10/20/06 – The weeks-old ban on California lettuce shipments to Mexico has been lifted after US Department of Agriculture tests for the E. coli bacteria proved negative; California is the country’s leading producer of lettuce with an estimated 70-75% of the total US production of iceberg lettuce and between 80-85% of the leaf lettuce.