U.S. Trade Surplus in Processed Foods Expected To Continue

The United States is among the world leaders in both exports and imports of processed foods and beverages. U.S. processed food firms buy and sell in a near trillion-dollar worldwide market for all goods. The appeal of U.S. brand names, influence of U.S. multinational firms abroad, and leading role played by the United States in global commerce suggest a major role for the United States in processed food trade for years to come. In 1994, the United States exported $25.8 billion worth of processed foods. Five industries have accounted for half of these exports in recent years. Most produce minimally processed products, such as fresh and frozen meats, frozen fish, soybean oil, and canned fruits and vegetables. The dominance of these industries reflects U.S. efficiency in field crops and meat and poultry production. The fastest growing processed food and beverage exports over the past few years have been in industries with relatively low trade volumes. Many of these exports are highly processed, brand-name prod-ucts, such as frozen bakery products, chewing gum, and soft drinks. Their growth reflects rising incomes, changing demographics, and the westernization of eating habits in many developing countries. These factors have led to increases in demand for U.S. foods and beverages