LETTER FROM THE EXECUTIVE DIRECTOR

By Jerry Schmitz,

Director

Relationships are the foundation of human existence. We need one another, whether as family members, community members, a nation or the world. Relationships are not automatic, and ask any married couple; relationships are not always easy, and tensions can rapidly increase. But they are invaluable to our happiness, wealth and very existence.

Our foreign trade partners regard relationships very highly. A few years ago, I was invited to attend the fiftieth-anniversary celebration of the soybean trade relationship between Taiwan and the United States. Taiwanese business people who had been retired for over twenty years attended the celebration for the opportunity to visit past U.S. acquaintances. It was very apparent that more than business, money, or prestige, they cherish personal relationships. They treat business partners with great loyalty and respect.

Just as the United States is efficient in food production, technology and other sectors, there are specific talents and resources that other countries can provide to us more efficiently By cultivating and nourishing relationships and trading our efficiencies back and forth, we create a synergy that benefits everyone. Balanced trade, including exports and imports, determines the future standard of living our families will enjoy. When countries turn inward to produce and consume only their own goods and services, trade efficiencies are lost, costs increase, and income is eroded. Less trade means lost opportunity and less wealth. The United States is a very wealthy nation, not because we only purchase our own products and services, but because we trade back and forth with other nations.

According to USDA, the value of all Ag exports in 2022 was $196 billion. Soybean exports accounted for $33 billion, Beef and Dairy $20 billion and Corn $19.5 billion. The top 3 purchasers of U.S. Ag products were: China $36 billion, Canada $28 billion, and Mexico $28 billion. Thirty-two countries purchased over $1 billion each in U.S. Ag products. Those sales are the result of relationships built over many decades.

Trade is a two-way street. There are a significant number of U.S. businesses invested in other countries. There are also foreign businesses investing in the U.S. and South Dakota that employ U.S. citizens, perform research to assist us in being successful, and provide and purchase goods and services that benefit our citizens. These are a few:

● Bayer develops new seed technologies, crop protection products, and pharmaceuticals. Bayer is a German-owned company.

● BASF produces chemicals used by the agriculture, pharmaceutical, construction, textile and automotive industries. BASF is a German-owned company.

● Syngenta develops new seed technologies and crop protection products in the U.S. Syngenta is headquartered in Switzerland but is a Chinese-owned company.

Director

● Smithfield in Sioux Falls purchases and processes hogs produced by local farmers. Smithfield is a Chineseowned company.

● Firestone Tire- Japan

● Holiday Inn- Owned by IHG- Britain

● Forbes- Hong Kong

● AMC Theaters- Wanda Group- China

● Budweiser- Belgium

● 7-11- Ito-Yokado- Japan

● Trader Joe’s- Germany

● General Electric appliances are produced in the U.S., but the GE appliance division is Chinese-owned.

● Ben and Jerry’s- Britain/Dutch

● Purina- Nestle- Switzerland

● Citgo- Venezuela

● Geber- Switzerland

We must continually cultivate new markets while being a reliable supplier to our existing customers. International trade fosters relationships that invite communication, loyalty and respect. Most importantly, those relationships help to maintain peace and security.