Michigan Companies Expected to Generate $1.3 million in Export Sales from Midwest Buyers Mission
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
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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
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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 >
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.
Jose Madeira of BusinessBrazil discussing the
many opportunities present in the Brazilian market for Michigan food and
agriculture businesses.
Follow us on FACEBOOK and TWITTER for valuable insider information about upcoming events, services, export trends, links, and news.
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
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