Green Horizons

Volume 8, Number 3
Summer 2004

Department of Agriculture Circles Globe to Increase Demand for Missouri Forest Products

by Rachel McCoy
UMCA Information Specialist

The Missouri Department of Agriculture (MDA) is working diligently to establish Missouri as a name synonymous with top-quality lumber production around the globe. Through participation in international conventions, hosting international guests on Missouri lumber tours and coordinating sales with exporters, the MDA hopes markets for lumber will continue to expand.

Recently, MDA teams worked to expand this effort by sponsoring a Missouri booth at the Shanghai International Building and Construction Fair in May, a show that attracts buyers of both hardwoods and softwoods and more than 30,000 attendees.

"This trade show is well attended by hardwood lumber buyers and is an excellent opportunity to meet a number of customers in one place," said John Hensley, MDA crops and timber team member. "China is not only a big customer, but one of the fastest growing markets."

The MDA operates a trade office in Taipei, Taiwan and also makes use of the Department of Economic Development's trade offices in Japan, Korea, Mexico, and Europe. The Taipei office conducts activities such as exhibiting at trade shows, arranging sales missions for exporters and organizing buyers’ missions for customers who want to visit Missouri.

Canada$414 Million
China(PRC)$109 Million
Spain$94 Million
Italy$89 Million
Hong Kong$71 Million
Mexico$70 Million
United Kingdom(Britain)$65 Million
Japan$49 Million
Portugal$25 Million
Taiwan$24.7 Million
Since 1999, hardwood lumber exports to Canada have grown approximately 18 percent, and exports to China have grown 265 percent. Hardwood lumber exports to Vietnam, ranked number 22 among export markets, have grown 1,120 percent during the past five years. Although the growth rate of Canadian exports ranks lower than other markets, Canada remains the number one export customer, accounting for 32 percent of U.S.hardwood lumber exports.
Note: For purposes of collecting data, the USDA treats Hong Kong and China as separate markets. Source: USDA Foreign Agricultural Service BICO reports, based on data from the U.S. Top Ten Export Markets For U.S. Hardwood Lumber

Hensley said the presence generated by Missouri companies among international buyers can be the Mexican market, one Missouri forest products company has exported more than $55,000 of hardwood lumber. "Mexico represents a particularly good opportunity for Missouri's hardwood exporters, since we are well-positioned to serve customers in that market," he said. Though U.S.hardwood exports to Mexico have declined overall since their peak in 1999, Missouri forest products companies are geographically well situated to serve this market.

In response to growing Asian furniture industries, the MDA Taiwan office is also pursuing those markets for U.S. lumber. Vietnam's furniture sector has experienced particularly rapid growth, and staff from the Taiwan office recently traveled to for U.S. hardwoods. Several potential Vietnamese customers provided the staff with product specifications during the trip. In September of 2003, the Taiwan office recruited buyers from Taiwan and Vietnam to travel to Missouri to meet with hardwood lumber suppliers. As a result of the buyers' mission, more than $67,000 in export sales have been reported. Next year, Missouri's Taiwan Trade Office plans to exhibit at furniture industry shows in both Vietnam and southern China.

Mark Hitt, leader of the MDA crops and timber team, said establishing a presence at international events helps generate markets for products Missouri producers are positioned to explore. Korean log buyers, for example, recognize red cedar for its natural pest resistant properties. "As we work to develop supply-driven markets for lumber, we expect to see greater export opportunities arise," said Hitt.

In addition to the MDA's office in Taipei, the Department of Economic Development operates trade offices in Japan, Korea, Mexico, and Great Britain to assist forest products exporters.

For more information, contact John Hensley, MDA, at (573) 751-5613; or visit www.mda.state.mo.us.


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