Oregon ag and food exports find an expanding market in Asia
Oregon’s agricultural exports, already the third leading sector among the $21 billion worth of products leaving the state annually, appear poised for continued expansion.
In particular, marketers and trade experts say Vietnam and the Philippines may approve imports of fresh blueberries, and fresh or processed potatoes may find greater acceptance in those countries, Japan, China, Taiwan and elsewhere.
Bryan Ostlund of the Oregon Blueberry Commission said fresh berry exports to South Korea, approved in 2011, reached 1.4 million pounds in 2014 and are on pace to top that in 2015. Korea had a strong retail system in place, which aided distribution after exports were approved, but Vietnam is developing the economic infrastructure and middle class that could make it a “really nice fit” for Oregon products as well, Ostlund said.
“The economy, you can feel it, is just ready to explode in a positive way,” he said. “The buying power is rapidly coming to the table.”
Pests and diseases that may arrive with imports are always a concern to be worked out, he said, as are food safety protocols.
“The Vietnamese and Philippine governments are very keen on broadening the scope of what comes in from the U.S.,” he said. “The growth potential seems huge to me.”
Processed and frozen products such as french fries are popular in Asian countries, as are “chipping” potatoes used for snacks, but grower groups are trying to expand the trade to include more fresh “table stock” potatoes, said Bill Brewer, director of the Oregon Potato Commission.
In Vietnam, for example, fresh potatoes are primarily used in soups, but Oregon representatives have demonstrated western cooking styles, which generated a “great deal of interest,” Brewer said.
The appearance of potatoes from Oregon, Washington and Idaho is totally different than potatoes, usually from China, that Vietnamese consumers are accustomed to, he said. Restaurants and hotels that cater to western tourists are good markets for Northwest potatoes, as are supermarkets whose customers include people who have lived in or visited the U.S.
“Whenever they’re exposed to our potatoes, they like them,” Brewer said.
Asia’s two biggest economies hold continued economic promise for Oregon. China now accepts only processed potato products and could be a great market for chipping and table stock potatoes, Brewer said. Japan is the number one market for processed potatoes and accepts fresh potatoes for chipping, but also could be good market for table stock potatoes, he said.
Because Oregon “faces” Asia, as exporters like to say, Asian trade is a natural, experts say. About 80 percent of what Oregon exports goes to 21 Pacific Rim nations, a category that includes the five largest markets: Canada, China, Japan, Korea and Malaysia. Those five alone receive 60 percent of what Oregon exports, according state economic analyst Josh Lehner.
Oregon’s largest export sector is electronics, followed by heavy manufacturing, with agricultural and food products third.
Barry Horowitz, an international trade consultant in Portland, said Oregon food and crop commissions previously operated on their own but now are beginning to cooperate in presentations to foreign buyers. Thinking of Oregon’s high-quality food products as a series of meals, complete with Oregon beer and wine, sharpens the focus, he said.
“That is a package that is unbeatable in the international marketplace,” he said.
Expanded trade with Vietnam is an example of the export potential that could benefit the state, he said.
“You have a country with almost 100 million people and a literacy rate over 95 percent,” Horowitiz said. “Western countries can’t get in there fast enough.”
Vietnamese distrust of Chinese food products works to the advantage of Oregon producers, who have “developed a highly visible reputation for high quality food,” he said.
“We’re not the most internationally minded place but we have enormous potential, because ag is a fundamental industry everywhere,” Horowitz said. “We can’t talk Intel to everyone, and not everyone in Vietnam can afford Nike shoes. But everyone in Vietnam can afford Oregon food products.”
Online
Read economic analyst Josh Lehner’s report at http://oregoneconomicanalysis.com/2015/08/12/oregon-exports-2015-industries/