Virginia Agricultural Exports Supply the World
In partnership with: Virginia Department of Agriculture and Consumer Services
Boasting 41,500 farms and 16 million acres of forest land, Virginia’s first- and third-largest private industries are agriculture and forestry, respectively. In recent years, exports from those two sectors have boomed, reaching an all-time high value of $5.1 billion in 2022 – a 25% increase over 2021 – according to the Virginia Department of Agriculture and Consumer Services.
China, Canada, Venezuela, Taiwan and Egypt were the leading markets for Virginia agricultural and forestry commodity exports in 2022. Animal products, tobacco, wood and beer were among the state’s foremost exported products. Soybeans topped the list with an annual value of more than $2.3 billion.
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Soybean Surge
Tom Taliaferro is a fourth-generation farmer and president of Montague Farms. The Center Cross-based producer supplies specialty soybeans to Asian markets, including Japan and Taiwan, for items such as natto (a traditional Japanese fermented food), tofu, soy milk, soy sauce and oil.
Montague Farms was among the Virginia businesses experiencing increased demand and sales in 2022. Taliaferro says the upward trend started in late 2019 with the onset of COVID-19.
“Our soybeans are used in products that are primarily consumed at home, so there was a demand increase in most products over the past several years that is just now starting to level out,” he explains.
Montague Farms is still seeing growth opportunities in the natto and tofu markets, although the rate of increase has lessened. Additionally, Taliaferro says demand for soy milk, soy sauce and oil has stabilized as manufacturers use stockpiled supplies more slowly than expected.
Taliaferro notes that 2023 brought Virginia exporters a positive change in overseas freight logistics and cost.
“High demand for imports coupled with manufacturing and labor shortages generated a very challenging shipping environment over the past several years,” he says. “Equipment availability, ocean freight rates, vessel schedules and vessel space availability were all in constant flux through the first quarter of 2023. We began to see a return to more normal conditions in Q2, which was a welcome change.”
Taliaferro anticipates continued growth in Virginia agricultural exports at Montague Farms for the foreseeable future.
“There always seems to be solid demand for high-quality products that meet consumer needs,” he says. “Our challenge is staying in front of those needs and being creative on how best to service those needs at a price that is competitive with other North American sourcing locations.”
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Logistical Solutions
Lineage Logistics, a company specializing in global temperature-controlled storage and logistics, has 12 facilities throughout the Commonwealth with many Virginia agricultural exports, primarily poultry and pork, shipping from Virginia International Gateway in Portsmouth or Norfolk International Terminal.
Lineage provides the state’s exporters with services including temperature-controlled storage, blast-freezing, warehouse-to-port drayage, warehouse management systems technology, intermodal transloading, freight consolidation and more, says Michael Skahill, director of government relations.
According to the Port of Virginia, the gateway’s central East Coast location allows delivery to about 75% of the U.S. population within two days or less and provides convenient access to key global shipping hubs.
Recent infrastructure improvements throughout Virginia will allow for better handling of growing supply chain demands. For example, the expansion of the Hampton Roads Bridge-Tunnel to add more lanes will help improve infrastructure into the ports while allowing for quicker, more efficient movement of containers throughout the Hampton Roads area.
In October 2021, Lineage debuted a state-of-the-art, cold-storage warehouse in Portsmouth, strategically located near the Virginia International Gateway. The gateway offers an integrated network of highways along with air, rail and sea services, all of which contribute to the ongoing economic and job developments in the region.
“The facility harnesses innovative automation technology to help customers address rising supply chain demands both nationally and internationally,” Skahill says.
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