About $3 billion worth of forage is shipped internationally each year, creating a significant impact on economies around the world.
Forage is an international business, based on the simple premise that people around the world desire dairy and beef products, and that farms and ranches are often located in areas where forage is either difficult or impossible to obtain. For example, in China the major dairy farms are located near large population centers which are considerable distance from suitable pasture; in Japan there is simply not enough land on which to grow enough grass to feed the nation’s dairy and beef herds. Efficiencies in global transportation make it economically worthwhile to import forage from overseas.
An increase in forage imports can tell us a lot about a country, revealing significant societal and dietary changes. In developing countries with growing economies, tastes and diets evolve to include more proteins and dairy products. National governments often step in to support new agricultural industries, developing dairy and beef operations to supply urban areas. These population centers are typically distant from potential pastures; more likely, the country has limited arable land with precious acreage allocated to high-value fruits and vegetables. In short, these countries cannot meet rising demand for forage products, and turn to the U.S. and other forage exporting countries.
The United States is one of several sources of forage, which includes Canada, Australia, South America, Northern Africa, Southern Europe and the Baltic region. From these regions forage is shipped all over the globe. Geographic proximity accounts for some cross-border trade, for instance when forage from Sudan is sold to the United Arab Emirates. Ocean freight patterns also influence global forage trade: When Chinese goods are delivered to Europe, the containers might be filled with forage from Spain to complete the round-trip.