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Veach: Arkansas Agriculture Industry Works to Maintain, Expand Trade

2 min read

Arkansas agriculture is a $20 billion industry and 30 percent of the state’s commodities are exported, according to Randy Veach, president of the Arkansas Farm Bureau.

Veach spoke about trade issues and Arkansas’ international relations during a session at the organization’s 81st annual meeting, which is taking place through Friday in Little Rock.

According to Veach, many Asian countries do not have the capacity to produce enough to feed their populations and therefore must import a wide variety of agricultural products.

“These countries are just looking for good food they can feed their people and keep them from starving,” Veach said.

But competition in the trade markets is increasing, and Veach said it’s important for Arkansas representatives to be present and visit export partners to maintain relationships.

Last month, Gov. Asa Hutchinson led a trade mission to Japan and China, looking to visit with companies that already do business in Arkansas and recruit new firms to the state. In China, Hutchinson had hoped to assure Chinese officials of the country’s biosecurity, and he said he wanted to invite China’s top agriculture official to visit Arkansas and see the biosecurity measures that are in place for exports such as poultry.

Another important Arkansas trade partners is Cuba, which Hutchinson visited earlier this year. The Republican was the first sitting governor to visit the country since the two nations restored diplomatic relations in December 2014.

During his trip, Hutchinson said there’s no doubt that Arkansas will be “a trading partner of significance” with Cuba, but he urged patience as the country prepares itself for U.S. investment. But Cuba and Arkansas already enjoy a solid export partnership, with more than half of Arkansas’ poultry exports going to Cuba in 2014.

“Cuba offers significant market opportunities for U.S. products,” he said.

Competition there is tough. Veach said Brazil and other competitors are also working to trade with Cuba as the Cuban government encourages more nations to make investments there

Veach also spoke about the Trans-Pacific Partnership, a organization of 12 countries, including the United States, whose trade deals account for 42 percent of all U.S. agricultural exports, or $633 billion.

He called working with those countries — Canada, Mexico, Peru, Chile, Japan, Vietnam, Brunei, Australia, New Zealand, Malaysia and Singapore — essential because of the volume of trade opportunities they provide.

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