Spring 2001 In This Issue Governor Kitzhaber Talks Agriculture Director's Corner ODA Names New Assistant Director Industry Development Manager Agriculture Plays Big Role in Oregon's 36 Counties Commodity Commission Spotlight Big Agricultural Operators Step Up to the SB 1010 Plate Keeping Ag Viable Project ODA & Governor Look to South of the Border Then & Now: The Egg Industry "Right-to-farm" law in Oregon Thirsty Oregon Agriculture Braces for Dry Year Invasive Species Catch ODA's Attention
	ODA, Governor Look to South of the Border It was a fresh look at a familiar export market in February as ODA's Agricultural Development and Marketing Division participated in a trade mission to Mexico that also involved ODA Director Phil Ward and Governor John Kitzhaber. The focus of the trip centered on prospects for Oregon beef and included a delegation of Oregon cattlemen. But everyone involved kept eyes open for all opportunities in Mexico that could benefit the state's agriculture. "Oregon is exporting more non-agricultural goods than agricultural," says Elizabeth Hamblin, ODA trade manager who helped organize the trip. "Because of its proximity to California, Mexico often seeks its products there first. It might be more difficult for our producers in some ways. But what we have to offer is desirable by Mexico. They are asking for things that often can't be found elsewhere." The Mexican export market is not new to Oregon. But the past half dozen years have been challenging for Oregon exporters looking at the U.S.'s southern neighbor ever since the disastrous devaluation of the peso in 1994. Slowly but surely, American agricultural exports have grown to an all-time high of nearly $2 billion in 1999. However, Oregon—at less than $7 million in exports to Mexico—has taken more of a wait-and-see attitude. Officials hope the recent mission and subsequent followups with Mexico this year will move more Oregon companies off the sidelines and into the ball game. "Our meat industry people learned quite a bit," says Hamblin as she recalls the highlights of the four-day mission. "They came with eyes wide open. They were surprised by the sophistication of both the market and the consumers. While the beef delegation basically wanted to learn and had no intent of making a sale during this trip, one member is ready to do business." Oregon's beef industry is flexible and nimble enough to provide the types of meat cuts that Mexico wants. The trip was high level in a variety of ways. Both Director Ward and Governor Kitzhaber were able to meet the new president of Mexico, Vicente Fox as well as Mexico's Agriculture Secretary Javier Usabiaga. "We took advantage of a meeting with Jeffrey Davidow, the U.S. ambassador to Mexico, to gain access to high level Mexican officials," says Hamblin. Presidente Fox is ready to lead Mexico into a new era of economic stability, which could only help when it comes to exporting Oregon products to that country. "Did we help ourselves with this mission?" asks Hamblin. "Definitely. The personal connections we made are important. Those contacts will last a lifetime." Oregon has been sending Christmas trees to Mexico in high numbers for years. As a result of the trade mission, Mexican buyers this month have come to Oregon to look at growers and companies. The trees are in demand and the buyers don't want to wait until October to make a deal. Besides beef and Christmas trees, other commodities might make their way south in increasing fashion. Oregon is involved in a joint project with Idaho to convince the Mexican consumer that yellow onions are just as good as the white onion—which is more traditional in Mexico. In-store promotions targeting the consumer with a yellow vs. white onion comparative taste tests will be part of the effort. Oregon produce will be featured in next year's ANTAD, a large national retail food show in Mexico that attracts thousands of buyers. Pears and hazelnuts will be among the items on display. Commitment and perseverance are two watchwords when it comes to domestic companies wanting to do business in Mexico. "You have to be in it for the long haul," says Hamblin. "You need to understand that you might not reap immediate economic rewards. But Mexicans are loyal consumers. If you are good and the first in the market, you'll be there forever." With a growing middle and upper class wielding a great deal of buying power among Mexico's 90 million people, the time is right to take a new and closer look south of the border. Then & Now: The Egg Industry Oregon's egg industry continues to be a significant player in the state's agricultural economy. Ranked #11 of all commodities in terms of production value ($51 million), Oregon has seen some wild fluctuation over the years in price, but has seen steady growth in the number of eggs produced and a dramatic rise in the number of eggs produced per layer. (See graph at right) Some highlights from the statistics: Then Oregon produced 377 million eggs in 1930, with an average of 122 eggs per layer. The price of eggs in Oregon hits the low mark of 18 cents per dozen in 1940. The high point for per capita egg consumption in the U.S. was 402 eggs in 1945. (Per capita consumption is a measure of total egg production divided by the total population. It does not represent demand) Prior to World War II, most egg production came from farm flocks of less than 400 hens. By the early 1960s, improved technology and the development of sophisticated mechanical equipment were responsible for a shift from small farm flocks to larger commercial operations. Decades ago, egg laying hens spent much of their time outdoors and eggs were gathered by hand. The entire process from collecting the eggs to packaging them was by hand as well. Now Oregon produced 805 million eggs in 2000—a record high—with an average of 271 eggs per layer. Prices have increased the past twenty years with a high mark of nearly 77 cents per dozen in 1990. Per capita egg consumption in the U.S. stood at 258 eggs in 2000. The trend is steadily up from the low mark of 233 eggs in 1991. In most egg producing states, flocks of 100,000 laying hens are common and some flocks number more than one million. That's the case in Oregon where most of the approximately 2.9 million egg laying hens are concentrated in five major commercial producers. The largest of those producers has more than a million laying hens. Most layers are housed exclusively indoors in facilities that are virtually 100% automated. One building can hold up to 160,000 layers. Automated feeding systems and computer controlled heat/ventilation systems maintain a constant environment for the birds. Eggs are collected via conveyor, and all the associated procedures—from candling to grading to packaging—are done by an automated system. Eggs produced today in these larger operations are never touched by human hands until they reach the consumer. Sources: Oregon Agricultural Statistics Service, the American Egg Board, and Jim Hermes, Poultry Specialist, OSU Extension. 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