New Market Developer Issue 2: March-April

Issue 2: March - April 2014

www.foodexport.org | www.michigan.gov/agexport | www.fas.usda.gov

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Foodservice Buyers’ Mission at National Restaurant Association Show

Are you interested in meeting international buyers at the National Restaurant Association (NRA) Show in Chicago, the largest foodservice and hospitality trade show in the Western Hemisphere? The Foodservice Buyers’ Mission is scheduled for May 17-20, 2014 in Chicago, IL. As international demand for US products increases, buyers continue to seek the latest in food and beverage trends. Meet one on one with buyers to develop and expand your business overseas.

Learn more about the buyers here. Confirmed buyers include Canada, China, Costa Rica, Guatemala, South Korea, Mexico, Taiwan & Thailand. Buyers are interested in a variety of products such as: bakery products, sauces, dressings, condiments, pasta, soup, chocolate, cocoa, egg products, concentrates, snack bars, dairy products, alcoholic beverages, and much more.

Click here for more information and to register

Early Registration Deadline: 03/14/14 ($100 - save $50!)

Final Registration Deadline: April 4, 2014 ($150)

NRA

Help Improve the International Marketing Program

The International Marketing Program at the Michigan Department of Agriculture & Rural Development (MDARD) is seeking company input for program development and your input is needed to make the program even more beneficial to your company!

Below you’ll find a link for a brief survey reviewing current programs and activities from the International Marketing Program.  Your thoughts on how to improve will be used going forward in planning future activities.

Please, take a few minutes and answer the questions, when you are finished, simply click ‘done’. You may choose to submit the survey anonymously; however, knowing your company’s needs provides greater opportunity for assistance.

Once again, your feedback and input is greatly appreciated! If you have any questions or comments, please contact Jamie Zmitko-Somers at zmitkoj@michigan.gov or call (517)-284-5738.

Survey location: https://www.surveymonkey.com/s/2014EXPORT 


LiveSmart Bar Works toward Exports Sales with Branded Program Assistance

Live Smart Bar

LiveSmart Bar located in Oak Park, Michigan, of the 12th Congressional District is optimistic about their future in exporting thanks to the Branded Program.

According to Sandy Kaplan, Communications Account Executive, this small, Michigan company now has the ability to attend tradeshows and meet key contacts, including distributors, with a wealth of exporting knowledge. Each of these successes has been made possible, in part, due to Food Export programs and services, supported by the Market Access Program (MAP).

“It is the little companies that need both the financial and experienced help on how to connect the dots to make their companies viable and prosperous. The valuable information learned from the program has enabled us to try to export our products and we need to thank the Branded Program for their continued support,” says Kaplan.

The company is currently completing literature and label modifications to meet the importing regulations for Canada. The company expects to begin their exports into the market in mid-2014.

Live Smart is a manufacturer and marketer of vegan, non-GMO, and gluten-free health food bars. Their plan has consistently been to market LiveSmart Bars with the dream of exporting them around the world.

Food Export–Midwest and Food Export–Northeast are private, non-profit associations of Midwestern and Northeastern state agricultural promotion agencies that use federal, state, and industry resources to promote the export of Midwestern and Northeastern food and agricultural products. Food Export–Midwest and Food Export–Northeast administer many services through Market Access Program (MAP) funding from the USDA, Foreign Agricultural Service.

For more information on Food Export-Midwest and Food Export-Northeast’s 50 percent cost-share Branded Program, please visit www.foodexport.org.


Market Spotlight: Mexico

Mexico

Since the North America Free Trade Agreement (NAFTA), US agriculture exports have quadrupled. Mexico eliminated duties on virtually all U.S. and agricultural and food products through NAFTA. Mexico was Michigan’s second largest export market in 2012 at over $77.3 million in exports. Dried beans are by far Michigan’s biggest agricultural export to Mexico at over $30 million making Mexico the largest and most important export market for the Michigan dry bean industry.

Mexico is experiencing a middle income population growth as well as increase of the work force, and is becoming more urbanized (projected at 83% in 2030). Today, 50% of the population is under 25 years old.

Recent trends prove consumers are looking for natural and healthy products. According to the Food Export Association’s In-Market Representative, Mexican food manufacturers are reformulating to offer better nutritional qualities of their products. Interestingly, hotel and restaurant chefs accept and require quality and consistent imported foods. Mexico’s “preparation from scratch” will remain, but chefs will continue growing their acceptance to modernize the segment.

 Upcoming Events:

- Focused Trade Mission to Mexico for Technical Food Ingredients: July 8-10 in Mexico City, Mexico

- Focused Trade Mission to Mexico for Snack Food: July 30-Aug. 3 in Mexico City and Guadalajara, Mexico

Tricks of the Trade: Legal Expertise

Guest Column: We are excited to continue our series of guest columns offering further insight into the world of international trade.

Jean Schtokal is a business attorney with Foster Swift Collins & Smith PC.

Why export?  95% of the world's population is located outside the U.S. – that’s a lot of mouths to feed!

Before tapping these new markets, there are a number of issues to consider as exporting is a complex business. Here are some essentials to export success:

Understand Import Regulations and Requirements.  U.S. exporters must determine whether their product meets import requirements, certifications and standards.  Examples of this include whether certain pesticide use, additives, labeling and packaging are required to ship goods to a particular foreign country and customer.  Added requirements may affect pricing.  Know before you go!

Pick the Right Partner. Do your due diligence on trading partners. Develop and complete a questionnaire for each trading partner inquiry.  Conduct background checks, check the U.S. Department of Commerce’s www.export.gov website and review the Consolidated Screening List. If a person or entity you wish to do business with appears on the list, seek assistance from legal counsel before moving forward.  You should also know about U.S. sanctions and embargos regarding international trade.  See www.trade.gov.

Protect your name and logo.   If your brand has goodwill associated with it, your first step in selling in a foreign market should be registering your name and logo in that country.  If you have a US trademark registration there may be a simplified process. Check with your legal counsel.

Understand Contractual Rights. Just because your contract says U.S. law applies does not mean it will. It's important to understand what foreign laws may apply and how they may impact your transactions. This means that you should seek assistance from legal counsel experienced in international trade to make sure you are protected.

Understand Tax Implications. International trade requires careful tax planning. Certain transactions may result in additional U.S. tax filings. It's a good practice to consult with an experienced CPA when doing business overseas.

Hope for the Best, and Plan for the Worst. Having well-drafted contracts help, but when disputes arise call your attorney.  Often, negotiation is a good first step. Most experts agree that, generally speaking, a contractual provision directing arbitration in the U.S. as a method of dispute resolution is preferable to court action in the U.S. depending on the foreign country in question and the factual circumstances.

The best way to ensure protection for your business and compliance with applicable trade laws is to work proactively with an experienced attorney to develop sound processes and best practices with respect to your export transactions as well as spot potential issues and address these proactively.  For more info visit: http://www.fosterswift.com/services-International-Business-Trade-Law.html

Foster Swift logo

Jean Schtokal is a business attorney with Foster Swift Collins & Smith PC. She has extensive knowledge of legal issues associated with exporting including agricultural products.   She is the chairperson of the Michigan District Export Council-West; a member of the Advisory Board of the Center for International Business Education and Research at Michigan State University, and serves as Co-Chair of the Global Business Club of Mid-Michigan. Jean has been named in Best Lawyers® in America since 2012 for International Trade and Finance Law.

Generating Export Success through Education

Over twenty Michigan companies attended the Michigan Department of Agricultural and Rural Development's (MDARD) International Marketing Program and the Mid-Michigan Global Business Club’s export seminar. Positive learning and networking experience was had by all.

Held at the Michigan State University Henry Center on February 19th, the seminar focused on legal considerations as well as credit insurance, incoterms, Ex-Im Bank, and Letters of Credit. Speakers included: Jean Schtokal, of Foster Swift, Collins & Smith PC, who educated attendees on due diligence and effective contracts; Jade Sims, illustrated exporting examples through a case study; and Bill Richeson of First Merit Bank, who covered how to “get paid.”

Attendees had the pleasure of hearing from Rob Grom, from Connor Sports Flooring, the 2013 Michigan Ag Exporter of the Year. Rob shared some of the company’s experiences and advice on exporting during an excellent keynote luncheon speech.

Overall, attendees reported that the presentations were insightful and helpful. When asked what was most interesting about the seminar, one participant replied, "distributor contractual tips & strategies from Connor about their successes". Another response was, "I enjoyed the banking presentation. Getting paid by foreign customers is our biggest concern".  

For more export education materials, check out the Food Export Association’s Webinars & Seminars as well as Export Essentials Online

rob grom

Pictured above: Rob Grom from Connor Sports talks about their export journey. 


Upcoming Events

Foodservice Buyers Mission at the NRA Show

May 17-20, 2014

Chicago, IL

CLICK HERE

Sweets and Snacks Buyers Mission at the Sweets and Snacks Show

May 19-21, 2014

Chicago, IL

CLICK HERE

Food and Beverage Buyers Mission at the FMI Connect Show

June 10-11, 2014

Chicago, IL

CLICK HERE

Food Show PLUS!™ at SIAL Brazil

June 24-28, 2014

Sao Paulo, Brazil

CLICK HERE

Focused Trade Mission to Hong Kong for Food Service Products

June 3-4, 2014

Hong Kong

CLICK HERE

Focused Trade Mission to Vietnam for Retail and Food Service Products

June 6-7, 2014

Ho Chi Minh City, Vietnam

CLICK HERE

Focused Trade Mission to Mexico for Technical Food Ingredients

July 8-10, 2014

Mexico City and Guadalajara, Mexico

CLICK HERE


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