July 2010 
Issue: 7.1
 MDA Marketing Minute
Promoting the Strength of Minnesota's Agricultural Economy 
 
 
Welcome to the MDA Marketing Minute,
the marketing e-newsletter from the Minnesota Dept. of Agriculture
Cheeseburger 
Ethanol industry pumps $2.5 billion into state's economy
 
Minnesota's ethanol industry generated more than $2 billion in economic activity in 2009 and supported more than 6,800 jobs.  This is based on the production of 862 million gallons of ethanol by the state's 21 ethanol plants.  New figures from MDA Ag Marketing Services show the industry is on tap to increase production 1.1 million gallons this year with a projected economic impact of $3.1 billion and approximately 1,500 additional jobs.  MDA Economist Su Ye says this is an import rebound for the industry that saw decline in 2008.
 
"From 2008 to 2009 the industry saw a dip in production, economic output and jobs but there's been a turnaround and 2010 is looking much better," she says.  
 
In 2009, Minnesota processed 308 million bushels of corn into ethanol or about 29 percent of the state's total corn crop.  This year the industry is projected to process 400 million bushels of corn or about one-third of the state's crop.
 
Saudi Arabia export opportunities await Minnesota food & ag companies
 
The Minnesota Department of Agriculture (MDA) is partnering with the U.S.-Saudi Arabian Business Council to highlight export opportunities in Saudi Arabia.  Representatives of Minnesota food and agriculture companies are encouraged to attend a July 27 market seminar in Minneapolis to learn more about exporting products to that country.  
 
"Minnesota agriculture exports to Saudi Arabia have grown faster than total U.S. agriculture exports have in the last seven years," said Shannen Bornsen, MDA International Resources Manager.  "Minnesota exports have been growing at an average of 33.8 percent per year since 2003, while U.S. exports have been growing at a rate of 10 percent for the same period."  According to Euromonitor data, sauces, condiments, vegetables and animal feed are among the Minnesota products being consumed in the market.  
 
Saudi Arabia is the world's largest importer of livestock and is the Middle East's largest market for agricultural products and technologies.  A recent effort to conserve scarce water resources led the Saudi government to implement a policy to phase out local production of water-intensive crops, thus limiting expansion of the country's agriculture sector. As a result, Saudi investors are looking for contract farming opportunities abroad to ensure a steady supply of food staples.
 
The export seminar will be Tuesday, July 27, 2010 from noon to 1:30 p.m. at the Radisson Plaza Hotel, 35 7th Street South, in Minneapolis.  Seating is limited.  Lunch will be provided.  For more information, contact Shannen Bornsen at 651-201-6658 or email shannen.bornsen@state.mn.us.
 
Dairy Committee completes service to industry
 
A big thanks to Minnesota's Dairy Profitability Advisory Committee for nearly four years of service in support of the state's dairy industry. The 14-member committee was formed by Agriculture Commissioner Gene Hugoson in 2007 and met several times each year to research, recommend and prioritize action plans to help the dairy industry stay viable and competitive.  
 
"This dedicated group has not only served the dairy industry but the entire state," said Hugoson. "Their work to support and improve the profitability of dairy farming is a benefit to all of us."
 
Final committee recommendations included increasing the amount and variety of dairy products purchased for the Women, Infants and Children (WIC) program. It also asked the MDA to work closely with the Board of Animal Health to improve the traceability of replacement heifer movement into and across the state and urged continued support for the creation of a Minnesota dairy research and education facility.   
 
Committee members included Duane Alberts, Pine Island; Eunice Biel, Harmony; Steve Krikava, Edina; Ron Collett, Zumbrota; Nick Kunkel, Ramsey; Keith Wilts, St. Michael; Ken Herbranson, Clitherall; Pat Lunemann, Clarissa; Dawn Jansen, Litchfield; Bob LeCocq, Rochester; Joe Borgerding, Belgrade; Jim Salfer, St. Cloud; Tom Anderson, Plainview; and Greg Blaine, Little Falls.
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Upcoming Events

August 3-5, Farmfest
Redwood Falls 
 
July 27, Saudi Arabia Export Seminar (see story below) 
 
 
AG STATS
 
It takes one bushel of corn to produce approximately 2.75 gallons of ethanol. 
  
MN now 6th in ag exports
We've moved up a notch in the dollar value of our agricultural exports in comparison to other states. According to the USDA's Economic Research Service (ERS), Minnesota's ranking moved from 7th to 6th in the top ten of states, with an estimated total value of $4.27 billion.     
 
California leads the nation with ag exports valued at $12.5 billion. 
 
Minnesota's top exports are soybeans, corn, livestock products, wheat and feeds.    
 
 
June is banner month for MN Grown website 
 
Last month, more consumers visited MDA's popular Minnesota Grown website to find local foods than in any other month. More than 26,000 unique visitors went to minnesotagrown.com in June, easily surpassing the previous record of 22,600 set in October of 2008.
 
Overall traffic to the site is up 37 percent in 2010 compared to the same period in 2009. The 26,350 unique visitors made more than 32,000 visits to the site during June and each visitor spent an average of just over 4 minutes on the site.

 

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