Governor Doyle Reports Record Export Growth in Wisconsin For 2007

Thursday, February 28, 2008 1:24 PM CST

Governor Jim Doyle announced recently that Wisconsin’s exports increased by 11.8 percent to a record $19.2 billion in 2007. Wisconsin now ranks as the 19th-largest exporting state, compared to its 21st largest rank in 2006. Since Governor Doyle took office, exports have increased by nearly 80 percent.

“I salute Wisconsin companies for aggressively seeking new markets around the globe,” Governor Doyle said. “As Governor, I’m committed to doing all I can to support a climate that encourages success for our exporters.”

Exports to Canada, Wisconsin’s largest international market, grew by 7.3 percent to $5.8 billion. Mexico continued as Wisconsin’s second-largest export market, as exports grew 2 percent to $1.9 billion. China took third place with a 35.4 percent increase to $1.2 billion, topping $1 billion for the first time ever. The United Kingdom took fourth place with a 6 percent increase to $722.8 million. Germany ranked fifth with a 13.4 percent increase to $660.8 billion.

Industrial machinery, including computer equipment, continues to be Wisconsin’s top manufacturing export commodity, growing by 11.8 percent to $6.2 billion. Electrical machinery ranked second with a 5.7 percent increase to $2.7 billion. Medical and scientific instruments ranked third with a 0.1 percent decrease to $2.1 billion. Agricultural exports ranked fourth with a 45.1 percent increase to just under $2.1 billion. Transportation equipment ranked fifth with a 18.4 percent increase to $1.7 billion.

Ag exports jump

The state’s agricultural exports rose 45 percent in 2007, driven by growing consumer demand in Canada, Mexico, and Asia for high-end food and quality livestock genetics. Overall, agricultural sales surpassed the $2 billion mark, up from $1.4 billion in 2006.

Dairy exports skyrocketed 131 percent, up from $84.7 million in 2006 to $195.8 million in 2007, driven by demand for cheese, whey, and butter. Nationally, dairy exports grew 61 percent in value. The volume of Wisconsin dairy exports grew 73 percent compared to 2006. Whey dominated dairy exports with 99.5 million pounds valued at $79.8 million n a record. Cheese exports hit 21.3 million pounds and set a record value of $75 million.

The export of dairy genetics and live dairy cattle also grew significantly, enabling Wisconsin to reclaim its status as the leading exporter of dairy cattle to the world. Many markets had closed their borders to U.S. bovine following the diagnosis of BSE disease in Washington state in December 2003.

The state’s world-class dairy genetic exports grew 40 percent, up from $28 million in 2006 to $39 million in 2007, driven by demand from Mexico. Live dairy replacement cattle exports grew from $1 million in 2006 to $5.4 million in 2007, also driven by demand from Mexico.

A relatively new export, dried distillers grains, jumped 245 percent, up from $6 million in 2006 to $19.2 million in 2007, driven by strong demand in Asia. A by-product of the state’s burgeoning ethanol industry, distillers grains are sought as a high-protein livestock feed.

Prepared vegetable exports soared 135 percent, up from $1 million in 2006 to $2.4 million in 2007. Potatoes rocketed 218 percent, up from about $432,000 in 2006 to $1.4 million in 2007, driven by demand for frozen potatoes.

Wheat and cereal exports, including corn, jumped 94 percent, up from $258.6 million in 2006 to $502.5 million in 2007, driven by demand from Italy, Spain, and Canada.

Malt used for brewing and food processing soared 199 percent, up from $10 million in 2006 to $31 million in 2007, driven by demand from Mexico and Canada.

Export revenues account for 20 percent of farm income. Agriculture generates $51 billion for the state and close to half a million jobs.

“Agricultural exports have contributed significantly to this year’s record farm gate prices,” Governor Doyle said. “I commend DATCP’s international trade team for their work connecting Wisconsin agricultural businesses with foreign markets.”

Governor’s export awards

Each year, the Governor recognizes Wisconsin firms and organizations that have achieved extraordinary results in international markets or have contributed to Wisconsin's ability to compete globally. This year’s nomination deadline is April 11. The 2008 awards will be presented on May 13, at the 44th Annual Wisconsin International Trade Conference in Milwaukee. For more information, visit http://commerce.wi.gov/IE/IE-ExportAwards.html.

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