High-value product (HVP) exports exceeded bulk exports in fiscal 1991, something virtually unprecedented for U.S. agricultural trade. Rising by $1.1 billion, HVP exports reached a record $20.4 billion due to favorable exchange rates, continued growth in industrialized countries, and U.S. industry marketing efforts. With world grain trade contracting, exports of bulk products fell $3.7 billion, causing overall U.S. agricultural exports to fall $2.6 billion, the first decline in 5 years. U.S. agricultural production that is exported as an HVP has been processed (such as flour), receives specialized handling (such as fresh fruit and vegetables), or meets specific needs through higher than average quality or preserved identity in a niche market (such as animal and plant breeding stock). Generally, HVP's are agricultural products other than raw grains, oilseeds, cotton, and tobacco. For example, wheat is a bulk export unless it is processed into flour or seeds, which are HVP's. Processing at packing plants gives meat and animal byproducts HVP status. Further, since a substantial proportion of U.S. livestock consumes grains and processed feed rather than pasture, U.S. animal product exports are considered HVP's because of the value added by feeding.