U.S. Farm Exports to Central and Eastern Europe Remained Unchanged in 1998

By Abraham Avidor

At $441 million, U.S. farm exports to Central and Eastern Europe remained unchanged in calendar year 1998, as significant gains in poultry meat and vegetable oils offset export losses in corn, soybeans, and soybean meal.

Although U.S. exports to Estonia showed the greatest value gain, most of the large poultry meat shipments to that country and Latvia eventually reached Russia and other destinations in the former Soviet Union.

Smaller gains occurred in U.S. exports to Albania, Bulgaria, Romania, and the Federal Republic of Yugoslavia (Serbia-Montenegro).

U.S. export sales to Bosnia-Herzegovina, the Czech Republic, Croatia, Hungary, Latvia, Lithuania, Macedonia, the Slovak Republic, and Slovenia decreased, while U.S. exports to Poland remained unchanged.

The European Union supplies most farm products to the region, while the U.S. market share is relatively small. U.S. exports tend to fluctuate in response to the region’s changing farm output.

Where are the best opportunities in the region for U.S. exporters? Look to products that support Central and Eastern European farm productivity and export earnings. These products include farm inputs such as planting seeds and animal genetic products, as well as bulk commodities for conversion into value-added products. Another good bet: certain consumer-ready foods to help diversify diets and support tourism.

In the short term, the conflict in Kosovo will lead to increased U.S. food aid to Central and Eastern Europe. Longer term, U.S. exports will continue to depend on the region’s weather, economic reforms, border protection, and food shipments to Russia.

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The author is an international economist at the Foreign Agricultural Service. Tel.: (202) 720-0760; fax: (202) 690-2079; E-mail: avidor@fas.usda.gov

Last modified: Thursday, October 14, 2004 PM