US Agricultural Exports to the Dominican Republic Reach a New All Time Record in 2022

Report Highlights:

U.S.
agricultural exports to the Dominican Republic reached an alltime record of $2.2 billion in 2022; a 14 percent increase from the previous record set last year. The increase in U.S. exports was driven mainly by increased demand for consumeroriented products. The top U.S. agricultural export to the Dominican Republic in 2022 was the category for pork and pork products, reaching $234 million in 2022. This is a 55 percent increase from $151 million exported in 2021. The increased demand for pork products is a direct reflection of the severe impact of African Swine Fever (ASF) on local swine production. High demand for other meat products and consumeroriented products was driven by an
increase in the number of tourists visiting the country in 2022. Dominican exports to neighboring Haiti were also a driver.

Record Setting Year

For the third straight year, agricultural exports from the United States to the Dominican Republic have
reached an alltime record. In 2022, the United States exported nearly $2.2 billion in agricultural products to the Dominican Republic; a 14 percent increase over the $1.9 billion exported in 2021.

As shown in Graph 1 above, the increase in U.S. exports was driven mainly by the increased demand for bulk and consumeroriented products. In the case of consumeroriented products, exports reached $1.068 billion in 2022; a 19 percent increase from $899 million exported in 2021. Within this category, exports of pork and pork products and dairy products led the way with $234 million and $157 million, respectively.

Exports of bulk products increased by 20 percent from 2021, reaching $577 million in 2022. Within this category, corn ($155 million) was a leading export product.

In the category of intermediate products, U.S. exports reached $403 million in 2022; a 6 percent increase from $380 million exported in 2021. Soybean meal ($231 million) and soybean oil ($59 million) led the way.

Top Products Exported

When analyzing U.S. agricultural exports to the Dominican Republic in terms of products, ten products
accounted for 68 percent of those exports in 2022. Those products are listed in Table 1 below.

Pork and pork products were the top agricultural product exported from the United States to the Dominican Republic in 2022, reaching $234 million; a 55 percent increase from the $151 million exported in 2021. The significant increase is explained by the severe, negative impact of African Swine Fever (ASF) on the Dominican swine industry. Post estimates that local swine meat production has declined by 30 percent since the outbreak of the disease in 2021.

In addition, high demand for other meat products and consumeroriented products was driven by an increase in the number of tourists visiting the country in 2022. According to the Dominican Republic’s Central Bank, the Dominican Republic received 7,165, 387 tourists in 2022, a 43 percent increase from the number of tourists visiting the country in 2021 (4,994,313). Post estimates that tourists demanded more than $150 million in agricultural products in 2022.

Soybean meal was the secondhighest agricultural product exported in 2022, in terms of value, reaching $231 million. This is a 5 percent increase from $221 million exported in 2021. Increased local output of poultry meat and products was the main driver. Soybean meal and corn, which also increased in exports by 33 percent in 2022, are important feed ingredients for the local poultry industry. Post estimates that local poultry production reached an alltime record of 365,000 MT during 2022. In the case of corn, U.S. product also recaptured market share from South American sourced corn in 2022.

Dairy products constituted the fourthhighest agricultural product export from the United States to the Dominican Republic in terms of value, reaching $157 million in 2022; a 35 percent increase from $116 million exported in 2021. Within dairy products, U.S. cheeses continue to gain market share. Exports of U.S. cheeses reached $46 million in 2022; a 43 percent increase from $32 million exported in 2021.

Exports of U.S. nonfat dried milk (NFDM) reached an additional $46 million; a 42 percent increase from $32 million exported in 2021. The increased demand for NFDM is explained by increased demand from local milk processors who continue to complain about the lack of availability of local quality milk.

Spurred by an increase in demand for wheat products manufactured in the Dominican Republic from the local tourism industry and neighboring Haiti, U.S. exports of wheat products reached $126 million; a 28 percent increase from $99 million exported in 2021.

U.S. beef and beef products continue to be in high demand across the hotel and restaurant sector in the Dominican Republic as highquality cuts are not produced locally. U.S. exports of beef and beef products reached $98 million in 2022, a 24 percent increase over the $79 million exported in 2021.

Although Dominican imports of poultry products reached an alltime high in 2022, U.S. market share declined. Total U.S. poultry exports reached $81 million in 2022, which represents a 16 percent decrease from $96 million exported in 2021. The decline in market share is explained by: 1) the implementation of Law 622 that temporarily eliminated all tariffs on imported food and agricultural products, such as poultry; and 2) the implementation of more restrictive protocols on U.S. poultry products due to concerns with the ongoing Highly Pathogenic Avian Influenza (HPAI) outbreak in the United States.

Finally, U.S. soybean oil exports to the Dominican Republic also declined to $59 million in 2022; a 6 percent decrease from $63 million exported in 2021. The declined is explained by increased competition from lower cost soybean oil sourced from South America.