FOR IMMEDIATE RELEASE
Aug. 9, 2005
Contact: Tom Uribes 559.278.5366 or 246.1717

NOTE: See the full report at FresnoStateNews.com. For print or radio interviews: Bert Mason at 559.278.5685. For television interviews: Jock O’Connell in Sacramento at 916.716.2251.

Fresno State report shows airborne ag exports taking off 

Post 9/11 security, airport congestion have had little impact on ag’s air cargo usage

California’s airborne agricultural exports in 2004 were valued at $659 million, an increase of nearly 60 percent since 2000, according to a report released recently by the Center for  Agricultural Business (CAB) at California State University, Fresno.

The extensive report, “The Role of Air Cargo in California’s Agricultural Export Trade,” examines the expanding role of the commercial airline industry as a vehicle for exporting California agricultural products.

It was compiled by a research team led by Dr. Bert Mason, professor in Fresno State’s Department of Agricultural Economics.

Lead author is Jock O’Connell, principal consultant with The ClarkStreet Group based in Sacramento. O’Connell is a consultant on world trade and economic trends and a member of the California Economic Strategy Panel’s Technical Advisory Group.

Funding for the project was provided by the Governor’s “Buy California Initiative,” the California Department of Food and Agriculture and the U.S. Department of Agriculture, through the California State University Agricultural Research Initiative (ARI) Program.

The study presents an in-depth evaluation of the role of air cargo services in transporting agricultural exports.

“Although air cargo accounts for a seemingly modest share of the state’s farm export trade, California’s airborne agricultural exports in 2004 were valued at $659 million, an increase of nearly 60 percent since 2000,” the authors note in the report.

The report also found that the use of air cargo by the state’s agriculture industry has not been deterred by the 2001 terrorist attacks, Mason said.

“We wondered if the post-9/11 security issues and airport congestion were affecting the ability of California agriculture to use air cargo,” said Mason, who completed similar studies on trucking and ocean shipping of California agriculture commodities during the 1990's.

The export values, along with a wide range of economic and logistical data regarding airborne trade, were collected from agencies such as the University of California, Davis Agricultural Issues Center; the U.S. Department of Agriculture; the U.S. Census Bureau; and the Western Institute for Strategic Economic Research. Interviews with agricultural exporters and freight forwarders were also conducted to determine how they used air transportation, the costs, and any problems that they had encountered in air shipping perishable commodities to export markets.

Reasons for the increase in airborne farm product exports include a growing demand in Pacific Rim countries for high-value perishable crops such as cherries, strawberries, asparagus and fresh organically-raised produce, the authors note.

Airborne farm exports are shipped aboard all-cargo air-freighters as well as in the cargo holds of passenger aircraft. Amounts range from a few boxes to several pallets. Cool aircraft temperatures and relatively short flight times enable the perishable items to endure transport.

While the trend for increased airborne shipments is likely to continue, California airport capacities will be the single most influential factor affecting exports, the authors suggest.

Currently, Los Angeles International (LAX) and San Francisco International (SFO) airports handle more than 90 percent of all California farm commodity exports.

“Yet both airports face severe constraints on their ability to handle significantly greater levels of additional cargo,” the authors state. Issues such as traffic congestion, noise and air pollution present serious challenges to increased flights to and from these centers.

The most likely air transport growth scenario will be expanded passenger and cargo service through other airports such as Oakland International and Sacramento International in the north, and Ontario International in the south.

“Simple demographic factors associated with the spread of population and industry beyond the state’s coastal regions will, in time, ensure that additional California airports will initiate scheduled passenger as well as all-cargo flight to overseas destinations,” the authors conclude.

Other issues that may affect airborne trade include California grower concerns over pest and disease infestation.

“Though such flights would be highly beneficial to international travelers and businesses in places such as the San Joaquin Valley, growers have a legitimate concern that–either by accident or maliciousness–overseas flights could carry ‘passengers’ that might prove devastating to growers, ranchers and dairy operators.”

The authors conclude that while foreign demand for high-value California airborne farm exports will likely continue to increase, needed infrastructure improvements may prove “elusive” because of demographic, environmental and political constraints that could hinder airport expansions. Supporters of airborne trade must bring legislators, city and county leaders and other policymakers up to date on the issues in order to build the teamwork that will be required for successful improvements.

O’Connell anticipates the report to be utilized by agencies such as the U.S. Department of Agriculture and the California Department of Food and Agriculture to help guiding policy decisions. The authors also plan to meet with grower organizations such as the California Farm Bureau Federation to discuss implications of the study.

For more information, contact Mason at 559.278.5685 or O’Connell at 916.716.2251.

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