New Market Developer Issue 5

Issue 5: September - October 2014

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Michigan Companies Expected to Generate $1.3 million in Export Sales from Midwest Buyers Mission


mwbm

All the way from the Upper Peninsula, Mackinac Maple Works talks maple products with a buyer from Vietnam. See more photos from the Midwest Buyers Mission on Facebook

On July 21, 2014, the International Marketing Program and Food Export-Midwest hosted the Midwest Buyers Mission in Grand Rapids. The International Marketing Program welcomed 28 Michigan, Indiana, and Ohio food companies to forge relationships with 18 international buyers and build export sales. The international buyers also travelled to two more stops in Milwaukee and Chicago to meet with other Midwest companies. While in Michigan, the international buyers toured retail stores to observe current retail and food marketing trends in America. The tour included Meijer, GFS Marketplace, Costco Wholesale, D&W Fresh Market, and the Grand Rapids Downtown Market.

The buyers mission was a great success to Midwest companies. Michigan companies who participated in the Michigan buyers mission reported $695,500 of actual sales made at the event and projected $593,000 in additional sales within the next 12 months. The food companies also had the opportunity to gain valuable market insight from Food Export In-Market Representatives from Vietnam, China, Hong Kong, Europe, Middle East and Brazil.

The Midwest Buyers Mission, the largest event hosted by the International Marketing Program and Food Export-Midwest, will be held next year in Minnesota, Illinois, and Ohio in July 2015. Registration is currently open, click here for more information.  In 2016, the Midwest Buyers Mission will return to Michigan. 


How to obtain a Certificate of Free Sale from MDARD

The Certificate of Free Sale is required documentation for various kinds of food products and provides evidence that goods are eligible for export, legally sold in the open market approved by the regulatory authorities in the State of Michigan and United States of America. Certificates of Free Sale can also be labelled as a “Certificate of Health” on request.

In order to obtain a Certificate of Free Sale through the Michigan Department of Agriculture and Rural Development (MDARD), companies must first be licensed by MDARD as a Food Processor and submit a form to the MDARD Food and Dairy Division. The Certificate of Free Sale Request Form is available for download here and should be emailed to MDA-FDDBusinessSectionInfo@michigan.gov when completed.

Requests for Certificate of Free Sale take around 3-5 days to process and certificates expire after one year. Visit the export documentation and certificates page on our website or contact Patricia Bizoukas at 517-284-5696 or bizoukasp@michigan.gov for more information. 


Market Analysis: Saudi Arabia

Jeddah, sa

Despite the global recession, Saudi Arabia has managed to consistently retain consumer confidence and high levels of disposable income. A key characteristic of the Kingdom’s advancing economy is the growing demand for Westernized, convenience, and healthy foods. 

Fortunately for Michigan companies, most Michigan agriculture products fall into at least one of these categories.  In fact, Saudi Arabia is the tenth largest importer of Michigan agriculture products. In 2013, Saudi Arabia’s top imports from Michigan included:

  • Dairy Products – $7.6 million
  • Edible Meal Preparations – $3.4 million
  • Cereal, Flour, Starch – $3.1 million
  • Infant Food – $1 million

Additional imports included fruit and sugar valued at over $1 million. With only 1.7% of land suitable for cultivation, it is obvious why importing is a necessity. The vast numbers of foreign workers in the country, craving flavors from home, also contribute to the significant increase in imports over the years. Tapping into this market begins with an understanding of the consumers’ way of life. The evolving Saudi Arabian lifestyle is characterized by increasing purchasing power, consumers becoming progressively more health conscious and consumers desiring more readymade food. Increasing purchasing power has led consumers to demand higher quality products that are often imported. There is an immense shift toward the favoring of Westernized goods as they are perceived to be more valuable.

Inadequate healthcare facilities have transitioned Saudi Arabian patients into “global health consumers” that look to Western products for solutions to their health concerns.  It is predicted that by 2015, 30% of Saudi Arabians will be obese and 32% will be overweight. To combat this projected future, consumers are adjusting their traditional shopping habit of buying in bulk to purchasing fresh food weekly that is much healthier. There are even strides being made to replace the junk food that schools offer to food that provides nutrients to students at the different stages in their development.

Traditionally, Saudi Arabian families have eaten dinner together but with the increase of women in the workforce and busy family members arriving home at different times, it is becoming less common. As a result, there has been a drastic boost in the consumption of convenience snacks (chips, confectionery products, and soft drinks) and fast food. To support this on-the-go lifestyle, consumers fuel their bodies with energy drinks commonly sold in the United States. As consumers continue to embrace Westernized ways of life, imports will become increasingly prevalent.

More information on exporting to Saudi Arabia can be found in the USDA Foreign Agriculture Service Saudi Arabia Exporter Guide or the USDA Foreign Agriculture Service FAIRS Report on Saudi Arabia. If you are interested in entering or expanding in the Saudi Arabian market, register for the Food Export Association’s Focused Trade Mission to Saudi Arabia for Retail and Food Service Products on December 2-4, 2014 by September 8. This low-cost opportunity is the ideal way to make international contacts and develop relationships with Saudi Arabian importers.

Source: Euromonitor International 


Upcoming Events

Private Label Buyers Mission at the PLMA Show
November 13-16
Kansas City, KS & Rosemont, IL 

Focused Trade Mission to Saudi Arabia for Retail and Food Service Products
December 2-3
Jeddah, Saudi Arabia

Specialty Foods Buyers Mission at the Winter Fancy Food Show
January 10-12
San Francisco, CA

Focused Trade Mission to Canada for Retail, Food Service and Specialty Products
February 10-11
Vancouver, Canada

Focused Trade Mission to Brazil for Retail and Food Service Products
April 13-14
Sao Paulo, Brazil


Trueline Foods Jump-Starts Their Way to Exporting Success

Trueline Foods is developing export sales since becoming a new participant in the Branded Program at the start of 2014. The company anticipates their first export sales of over $100,000 to be finalized by the end of 2014. The projected sales will allow Trueline Foods to add new staff and expand their facilities in the future. READ MORE >


Focused Trade Mission to Brazil for Retail and Food Service Products

Imports to Brazil have increased substantially in recent years. The growing Brazilian marketplace is greatly attributed to the growing middle class and hosting of the 2014 FIFA World Cup and the 2016 Summer Olympics. Brazil’s largest imports from Michigan are meal preparations, fruit, and beer.

In July, the International Marketing Program and Food Export – Midwest hosted the seminar: “Tapping into the Brazilian Market” to provide information on Brazil’s standard business practices, export documentation, and regulations. If you have not already taken advantage of this market’s great potential, consider participating in Food Export Association’s Focused Trade Mission to Brazil for Retail and Food Service Products on April 13-14 in Sao Paulo or Food Show PLUS! at Sial Brazil on June 24-26 in Sao Paulo. 

These events will allow you to gain a better understanding of the retail landscape, competition and demand of agriculture products in Brazil.  More information to assist you with your exporting endeavors to Brazil can be found in Food Export’s free recorded webinar, Why Brazil? An Inside Look at Latin America’s Largest Market or the USDA Foreign Agriculture Service Brazil Exporter Guide.

Brazil

Jose Madeira of BusinessBrazil discussing the many opportunities present in the Brazilian market for Michigan food and agriculture businesses.


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Past Issues of the 2014 New Market Developer:

Issue 4: Jul-Aug 2014

Issue 3: May-Jun 2014

Issue 2: Mar-Apr 2014

Issue 1: Jan-Feb