South Carolina Ag Commissioner Hugh Weathers has just returned from a trip to Panama, and it was it was not all fun and games, although I think you had some fun while you were there. We’ll start with that, commissioner. It sounds like there were some intriguing aspects to Panama that caught your attention.
“Well, obviously, when you talk to Panama, you think about the canal, and it was not our reason for going to have any discussions about the future of the canal, but we wanted to learn its impact on American trade and export opportunities. So the only non business thing we got to do was go out to the canal and get a tour and learn a little bit more about that. And it is quite impactful of what it means to that country, what it obviously we know what it’s meant for a century to world trade, but just to learn a little history about it and see the new canal in operation as well, fascinating, but Panama, I think, is one of the gems of Central America, with the probably the most sophisticated economy and mixture of urban and rural and otherwise. So I was pleasantly surprised at what I saw there.”
I would imagine that the canal itself has been a major contributor to that economic sophistication you found there.
“Oh, very much. So the tolls for a ship to go through is for commercial is based on a percentage of the value of the cargo. So, you know, higher the value, the higher the toll, probably ranging from 700,000 to what a million and a quarter dollars per ship going through, and I think they’re somewhere in the mid-30s to 40 ships per day, which is down because the canal itself works off of a lake that feeds the water for the locks, and that lake is 85 feet above sea level. So come in from one side, you got to get lifted up 85 feet and exited. You get lowered down and three locks, I think, on each side, you know, 2530 feet per lock, type of thing. And there you go. So an interesting thing, the original lock system built whatever 1914 its first ship went through. There are no mechanical pumps moving water. It’s all based on gravity coming from the lake down to the lot. So again, you know, until you stop and focus on something, we just sort of take things for granted, like, Oh, I thought it was a canal all the way through. Well, no, not at all so fascinating to learn more about that, but then to learn about some of the agricultural challenges of Panama. You know, in the southeast, we’re used to heat and disease and things like that for our animals and sure and crops and so are they probably on a much higher intensive level being there in the tropics.”
This trip, I understand it, was organized by NASDA, the National Association of State Departments of Agriculture. Who else accompanied you on this trip?
“Well, we had five commissioners, and we always get a good geographical balance of the US, between South Carolina, Mississippi, Ohio, Arizona and Montana, and then there’s always an industry guest that comes along this time, it was a young man based in Mexico that actually represents the United States genetics associate, export Association, and it’s His purpose is to kind of help bring other countries along with some of the genetic progress we’ve made through artificial insemination and selective breedings and things like that that benefit the cattle industry and the swine industry in this case. So he was there, and now people from the foreign ag service based in Costa Rica, I think, were there to help facilitate some of the meetings, and then a local person with the embassy was there also. So you know, seven, eight people, and that allowed some really a full schedule, because you didn’t have to move 30 and 40 people around each time, met some fascinating people in both government agencies. They have a relatively new administration that they’re looking to advance some of the efficiencies and effectiveness of government, but also some private, mostly importers and distributors of food products, and that’s where our interest is. What can we help have further conversations with in my case, you know, South Carolina agribusiness people who want to look a little stronger at exporting, and my message to them will be that Panama will be a great place to start or to build on, just because they are so pro American and I think good business people. So I think there are some opportunities because of that combination.”
What are some of the commodities and products from South Carolina that you think would be a good fit to export to Panama?
“Well, I found out that the livestock industry is interested in cotton seed feed, and our cotton farmers are always looking for new value for their cotton seed by products, and then maybe some of our canned goods that would be shelf stable make it there. Also other types of feed for their livestock. Now their poultry industry is probably their best segment, so I don’t know that there’s much opportunity there, but I would think with some of the genetics that they’re looking to build in livestock, I mean beef and or dairy, some opportunities there as well. So mainly around food, mainly around shelf stable products and some feed ingredients, I think, are areas that we’ll look into.”
Coming the other way, was there any talk about Panamanian exports coming into the US? And what were some of those?
“There is, and that’s why we take these trips. And to say this is not a one-way deal. It’s two way. Now you got to look at the statistics that we export to Panama, somewhere around a billion dollars of product value, and we import from them, maybe 120, 130 million. It’s in fruits and vegetables, probably in spirits. You know, some of the beers that they brew down there seems to be popular. So again, the trade is mostly us to Panama, but we are there to say where opportunities exist. We will help them facilitate and send product to the United States again, because we have such a good relationship with that country.”
Yeah, this is one of the instances where the trade imbalance favors the US, which is something of course, President Trump is addressing right now with tariffs. So this, this is an exception to what we’re hearing about in the news these days.
“Well, it is. But then, when you think of naturally, Panama is a great country, but they’re four and a half million people. Yeah, you know, we have five and a quarter million people in South Carolina. So they’re, they’re smaller population than we and also very similar size of land. So that was the thing that struck me as the similarities, the comparables, if you between South Carolina and Panama, but on the trade imbalance is just you have to see it as in perspective that they are a country smaller in population than South Carolina itself.”
Well, it sounds like a successful trip. Is there anything you’d like to add that we haven’t touched on?
“Well, the success is always after these trips are over, how do you build on it again? To open doors. So that’s our job now, collectively, is to communicate and facilitate all those who want to do some exporting. How do we make it happen.”