Asian crisis may take bite out of U.S. exports<\/p>\n
By Rob Lever<\/p>\n
WASHINGTON (AFP): U.S. agricultural exporters, facing the
\nprospect of sharp declines in orders from Asia, are scrambling to
\navoid losing markets in countries affected by the region's
\nfinancial turmoil.<\/p>\n
Asia accounts for 46 percent of the US$60 billion in U.S.
\nagricultural exports, and U.S. producers are bracing for declines
\nin exports of items such as beef to Japan and South Korea and
\ncotton and apples to Southeast Asia.<\/p>\n
U.S. Department of Agriculture officials say it is too soon to
\npredict the impact of the Asian crisis, because it is not clear
\nhow long it will last and how painful it will be in the region in
\n1998.<\/p>\n
But the agency in December forecast a $500 million decline in
\nexports in 1998 to South Korea and the Southeast Asian countries
\nmost affected by the economic crisis.<\/p>\n
The department Monday announced it was offering one billion
\ndollars in credit guarantees for the Philippines, Indonesia,
\nMalaysia, Thailand and Singapore, similar to a billion-dollar
\nprogram announced last month for South Korea.<\/p>\n
\"This will guarantee repayment if foreign banks default,\" said
\nagency spokeswoman Carolyn Harris.<\/p>\n
Harris said the move, which ensures low-cost credit for
\nimporters, was aimed at maintaining U.S. presence is countries
\naffected by the crisis, but acknowledged that the credit
\nguarantees would not compensate for currency declines.<\/p>\n
Some private analysts say there are sectors already feeling
\nthe pinch from the Asian turmoil.<\/p>\n
World cotton prices are off 10 percent from a year ago, and
\nindustry officials say decreased demand from Asian manufacturers
\nis a contributing factor.<\/p>\n
The currency turmoil has spurred some textile makers to turn
\nto other countries for raw cotton or to use synthetic fabrics
\nthat now cost less, said Allen Terharr, executive director of the
\nCotton Council International in Washington.<\/p>\n
\"We have been concerned,\" said Terharr. \"We're working very
\nhard to help the mills (in Asia) bring cotton in, process it and
\nkeep operating.\"<\/p>\n
Fresh produce is another item affected by the turmoil, noted
\nJim Thomas of the Washington State Apple Commission.<\/p>\n
\"About 55 percent of our exports go to Southeast Asia and most
\nof our major customers are hurting from the financial problems
\nwhether it's currency devaluation or financial instability,\" said
\nThomas.<\/p>\n
\"But it's not just the financial problems. Just the air of
\ninstability can affect our sales when it comes to perishable
\nproducts, importers get delivery in three to four weeks, and if
\nthey think the currency will be devalued they're not going to
\norder the fruit and pay 20 to 30 percent more for it\" in local
\ncurrency.<\/p>\n
Thomas said sales in Indonesia -- the third largest market for
\nU.S. apples behind Taiwan and Mexico -- were off 50 percent for
\nthe crop harvested as of Sept. 1, and many other Asian markets
\nwere also lower.<\/p>\n
The beef industry is especially concerned about the situation,
\nsince three-fourths of $2 billion in exports go to Asia. Exports
\nhave been growing to Japan and South Korea, the two largest Asian
\nmarkets, but that may change.<\/p>\n
Julie Bousman of the National Cattlemen's Beef Association
\nsaid the data on beef exports to Asia are not yet in, but
\nanecdotal evidence suggests there may be steep declines.<\/p>\n
\"No new orders are being placed and some orders are being
\ncanceled\" because of concerns about currency fluctuation and
\nother financial problems, she said.<\/p>\n
Ian Erridge, vice president for sales for California-based
\nBlue Diamond Growers, said the crisis may hurt the group's almond
\nexports, which have been growing in Japan and the rest of Asia.<\/p>\n
\"We're obviously watching it very closely because we are so
\ndependent on exports,\" he said. \"Two-thirds of everything we ship
\ngoes outside the U.S.\"<\/p>\n
The Pacific Rim represents about 20 percent of the group's
\nexports, and Japan is the second-largest market outside the
\nUnited States.<\/p>\n
\"We haven't seen an immediate impact, but as each month goes
\nby we'll see that increase,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-crisis-may-take-bite-out-of-us-exports-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}