New Market Developer, March-April 2015

Issue 2: March - April 2015

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Michigan Companies Explore Exporting with Winter Seminars

Seminar

The International Marketing Program hosted two export seminars in early 2015 for companies at all stages of the exporting process. The “Why Export” seminar on January 13 focused on entry level exporting information, while the second export seminar on February 10 was directed at more experienced companies in need of technical export knowledge.

The “Why Export” seminar, hosted in conjunction with the Food Export Association of the Midwest,covered why exporting is an excellent way  for companies to learn how to grow their business and how to get started. The featured speakers were Dennis Lynch from Food Export-Midwest and Jamie Zmitko-Somers from the International Marketing Program.  Lynch discussed exporting basics including market outlook, global consumer outlook, pricing and determining export readiness.  Zmitko-Somers introduced the attendees to the many Food Export programs and services available.

The seminar also featured a company panel of experienced Michigan food exporters to offer first-hand knowledge of how to be successful. Mary Safie from Safie’s Specialty Products and Mike Marsh from Flatout Bread represent two Michigan companies that export and gave advice to fellow Michigan food and agriculture companies.

Michigan food and agriculture companies gathered to explore advanced export subject matter at a seminar hosted with the Global Business Club of Mid-Michigan. The keynote speaker was Steven Cooper from Continental Dairy Facilities, LLC—winner of the 2014 Michigan Ag Exporter of the Year award.

Vandana Chojar-Bahl from Supply Chain Solutions presented about logistics and the importance of selecting the right freight forwarder. In the exporting process, freight forwarders can provide assistance in, determining payment terms and export certification, compliance and documentation.

The seminar also provided valuable information about insurance.  Keith Mixter from MARSH discussed marine cargo insurance that can cover all goods incidental to the exporters business when shipping products worldwide.  Cargo insurance may be purchased through an insurance agent, through the internet or directly from a freight forwarder. According to Mixter, the most important factors to consider are the AM best rating, experience level, proper licensing, claims handling and the extent of their global network.

Michael Wahl from PNC Capital Markets covered foreign exchange considerations when exporting. With the value of the US Dollar strengthening, Wahl recommended conducting business in the local currency not USD. Exchanging in the local currency can increase an exporter’s competitive advantage and help companies manage exchange rate risk.

Other speakers included Dennis Marvin from Consumers Energy and Les Brand from Supply Chain Solutions who presented on opportunities in the development of Port Muskegon.

The final keynote speaker was Steven Cooper from Continental Dairy Facilities, the 2014 Michigan Agriculture Exporter of the Year. Continental Dairy Facilities experienced tremendous growth after beginning production in 2012. In 2013, five percent of all U.S. milk powder products were exported by Continental Dairy. Cooper presented information on the global dairy industry and gave exporting advice to the attending Michigan agriculture and food companies.

Applications for the 2015 Michigan Ag Exporter of the Year are due by end of this week, on March 6. 


Land of Opportunity: Is China Your Next Marketplace?

Michigan is known for its diversity of agricultural offerings, and the many high-quality food products that are grown and processed within the state. In fact, Michigan food and agricultural exports to China have increased more than 40 percent between 2012 and 2013, totaling over $52 million in revenue.

As China’s economy has moved from being agriculturally to industrially driven, the country relies heavily on imports to meet the growing popularity of western and international food items that Chinese consumers want. Unique shifts in demand in the Chinese market have created an increased opportunity for Michigan food and agriculture products to thrive in the Chinese marketplace. Specifically, dairy, fruits and vegetables are all exports that have experienced significant growth.

Currently, China is the fifth largest importer of Michigan products, a value that is only projected to increase.Michigan companies interested in taking advantage of this growing market have many resources available to help in accessing the Chinese market. The International Marketing Program at the Michigan Department of Agriculture and Rural Development (MDARD) along withFood Export Association offer resources to food and agriculture companies including export education, buyers missions, trade missions and reimbursement for international marketing costs. Specific to the Chinese market, the International Marketing Program at MDARD, in conjunction with Food Export, is offering a Focused Trade Mission to Northern China for food service products. This is an ideal way to make international contacts and develop relationships with Chinese importers. More information on exporting to China is available in the USDA Foreign Agriculture Service FAIRS Report.


Success Story: Michigan Company Loves to Export with Branded Program

Soymix

Love Your Health, LLC of Grand Rapids, Michigan, attributes its ability to achieve export success in 2014 to the Michigan Department of Agriculture and Rural Development’s (MDARD) International Marketing Program for advice and connecting the company with Food Export-Midwest’s Branded Program.  

The company first heard about the Branded Program from MDARD’s International Marketing Program Manager, Jamie Zmitko-Somers. According to President, Peter Assaly, “Jamie has been invaluable in explaining the opportunities and benefits of Food Export programs and her recommendation of the Branded Program led me to receive 50% reimbursement on costs associated with demonstrating my product in Canada and shipping Soymix to Australia and the United Kingdom.”

When further discussing the results of his participation in the Branded Program, Assaly mentioned, “The Branded Program funding also played an important role in my decision to exhibit at the Sweets & Snacks Expo and the Natural Products Expo West Show.” The exhibition led to the company’s establishment of a relationship with an export manager and repeated purchase orders of Soynuts to Hong Kong and Canada. Additionally, Assaly said, “I am confident that more opportunities will materialize in the future as a result of Food Export’s continued support.”

Read the rest of the story here


A Practical Approach to Growing Your Exports and Business in Europe

This article was written by Bill Patterson, Managing Director – USA, ibt partners; a team of experienced and professional web-savvy European business developers, based in the USA, the UK, Germany and France. If you would like to understand how to use the internet, localized websites and marketing to grow your European business, please visit www.ibtpartners.com, or contact Bill Patterson at bp@ibtpartners.com 

  • What more can I do to develop my European sales?
  • Who controls my sales/marketing in Europe: us or our distributors?
  • How can I get the best return from our existing efforts at trade shows, country visits?
  • Can I do this from my office?
  • What support can I get?

These are questions that we deal with every week… and while traditional ways of developing an export business (trade shows, distributors, missions, etc.) remain important, smart companies are increasingly harnessing the internet as a cost-effective tool to support and accelerate ROI on traditional approaches, and to answer these questions.

A website is a default for almost any business, however the majority don’t make the best use of their internet presence for international business development. Most value search engine optimization, social media, and online marketing to drive prospects to their site, but don’t think about how this work needs to be replicated in each market/country they want to develop – for example: SEO in the US does not provide traction for a European market.

European markets are web-centric, sophisticated, diverse, mobile and competitive. Especially the big 3 - UK, Germany, France, then Italy, Spain and Poland. Europeans prefer country specific websites with their own language, content and design. Today, local websites are essential for a US company to compete successfully in Europe, and using technology wisely is essential to reach new markets and secure growth prospects. Use of the internet to effectively build and develop businesses in international markets is now recognized by Food Export Association of the Midwest which recently changed the terms of its Branded Program to support web based initiatives.

ibt partners offers a free e-book “ecommerce in Europe” click to download your copy now

Exporter's Toolbox

Every profession comes with a unique set of tools. As a food exporter your toolbox might be lacking if you aren't using all of the available resources. The following are links and articles to assist in making sales overseas:

Branded Program- help offset the costs of international marketing expenses with this reimbursement program.

United States Department of Agriculture FAS- get information about foreign markets from the USDA.


Current Events Corner

This post was written by Anjuli Doyle. Anjuli is an Associate with Entira, a marketing strategy and business development firm that provides fresh and unbiased views of customer needs to food and agribusiness companies. For more information on Entira, contact Anjuli at adoyle@entira.net

Break Out the (Cuban) Cigars!

The news in mid-December of President Obama approving the United States’ move toward  “normalizing relations” with Cuba was met with applause from seed groups, grain merchandisers, livestock organizations—probably every sector of agriculture. After a longstanding economic embargo dating back a half century that stifled any kind of relations with the socialist island nation, the United States is now looking at the possibility of a sizeable new market opening up that’s basically right next door. By mid-January, the U.S. Treasury Department already had loosened trade restrictions with companies wanting to export telephone, computer and Internet technologies, and also opened the door for companies wanting to make investments in small businesses there. Momentum is building. 

- See more at: http://entira.net/news-insights/entira-insights/break-out-the-cuban-cigars/#sthash.I1XjZNiV.dpuf


There's Still Time for NRA and FMI

Still looking for marketing opportunities in 2015? A proven method of reaching international and domestic buyers is through trade shows, and there are only a few spots left in the Michigan Pavilion at the National Restaurant Association (NRA) Show and Food Marketing Institute (FMI) Connect.  

There will be a Michigan pavilion at the American Food Fair Showcase at the NRA Show on May 16-19, 2015 in Chicago. The NRA Show emphasizes food service and HRI and participants in the 2014 Michigan Pavilion expect sales of $730,000. FMI Connect also offers great opportunities and takes place in Chicago on June 9-11, 2015 and will feature a Michigan Pavilion. This trade show focuses on retail food sales and last year’s participants in the Michigan Pavilion projected $2.1 million in sales.

Space is limited in the Michigan Pavilions. For more information about the Michigan Pavilions and to download the space applications, please visit the website. For questions and to register, please contact Jamie Zmitko-Somers at zmitkoj@michigan.gov with completed space applications. 

The Food Export Association of the Midwest will host buyers missions at the NRA Show and FMI Connect. The buyers missions are an opportunity to meet one on one with international buyers and promote your products.  For more information and to register for the buyers missions, visit the Food Export website.


Upcoming Events

Michigan Pavilion at the National Restaurant Association Show

May 16-19 | Chicago, IL

Michigan Pavilion at the Food Marketing Institute Connect Show

June 9-11 | Chicago, IL

Anuga Food Fair

October 10-14 | Cologne, Germany 

Michigan Pavilion at Americas Food and Beverage Show

October 26-27 | Miami Beach, FL


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Get in Touch with the International Marketing Program

Jamie

Jamie Zmitko-Somers

zmitkoj@michigan.gov

517-284-5736

 

Hannah

Hannah Bollinger

bollingerh@michigan.gov

517-284-5737