Even Agriculture and Food Exports to China Are Hitting the Brakes

Economy

Published: January 4, 2016 11:25 am

Last Updated: January 13, 2020 3:28 pm

Things are bad enough in China that even food exports to the world’s most populous nation are slowing. The U.S. Department of Agriculture (USDA) has released a new report that projects China’s impacts of a slowing trade and agriculture growth.

China’s impact on slowing growth on trade and agriculture was seen lower in 2015 by 13%, or $4 billion, with an even larger drop expected in 2016. Keep in mind that China accounts for about one-sixth of U.S. agricultural discounts.

China’s economic prosperity and increased food demand of the past two decades or so significantly contributed to the record growth in U.S. agricultural exports. To prove the point:

From fiscal year 2000 to fiscal 2015, the value of U.S. agricultural and related exports to China rose from $1.7 to $25.9 billion dollars — with nearly 17% of all U.S. agricultural exports destined for the Chinese market.

Traditionally, U.S. exports to China were dominated by land-intensive bulk commodities, which were then processed for domestic consumption or re-exported. The USDA noted that recent increases in Chinese consumer purchasing power and improved standards of living have generated new demand for luxury items and ready-to-eat foods.