In this Issue:
Canada is the number one export market for Michigan
products, with over $1.09 billion in export sales in 2015. Canada’s location
and its cultural similarities with Michigan make it a perfect
destination for all types of food and agriculture products. The growing market
for Michigan products stems from Canada’s desire to import more innovative
products to meet buyer demand.
Is your company interested in breaking into the Canadian market? Food Export's Focused Trade Mission to Toronto for Specialty and Natural
Products is the perfect opportunity for Michigan companies to showcase their
products to Canadian buyers. This is a great opportunity for companies to meet
face-to-face with pre-qualified Canadian buyers and learn about this important
market.
Date: September 6-7, 2017
Services:
- One-on-one meetings with qualified buyers
- Pre-event
custom product research including market overview, importation analysis and
distribution analysis
- Introduction to qualified buyers
- Market
briefing by local USDA, Foreign Agricultural Service
- Retail
store tours
- Label
regulations presentation
- On-site
assistance by Food Export's In-Market Representative
Registration:
Early Registration Deadline: May 3, 2017 - $400
Final Registration Deadline: June 14, 2017 - $600
Register online at http://bit.ly/2kIuYjs
Questions? Contact International Marketing Program Coordinator, Allie
Fox VanDriel, at foxa1@michigan.gov or 517-284-5737.
In
August of 2016, Herkner Farms, located in Traverse City, Michigan, in the 1st
Congressional District, attended Food Export’s 2016 Midwest Buyers Mission in
Lansing, Michigan. They spoke with several buyers from Asian and Central
American markets during the one-on-one meetings. Since then, the company has
had contact with many potential buyers and is excited for future trade shows
and finding more export opportunities.
Bruce
Byl, President of Herkner Farms, said, “We will continue to attend [Food
Export] events in the Midwest. By expanding the number of markets we can sell
our products in, I’m confident that my opportunities to build relationships
will continue to increase. Furthermore, being a small and nimble company
will allow us to react quickly to any distributor/importer special needs and
make us a more attractive investment.” As a result of expanding their market
and being able to work closely with customers, Herkner Farms has been able to
meet with several buyers about possible exports. Additionally, as a would be
first time exporter, the Buyers Mission has taught Byl and his company how to
interact with international customers and what to expect the next time they
participate in an export activity.
Herkner Farms, which started out as a small family
owned business, is now a producer of several varieties of gourmet fruit drizzle
toppings. The International Marketing Program at MDARD helped the company access
the Food Export programs and services, including the Midwest Buyers Mission.
Herkner Farms has also taken advantage of the Food Export Online Product
Catalog in 2016 and 2017, and will attend a Food Service Buyers Mission later
in 2017.
For the rest of the story, click here.
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Jamie Clover Adams is the director of the Michigan Department of Agriculture and Rural Development, holding the position since 2012. |
In recent months, the subject of international trade
has erupted as a major point of contention. While there have been concerns over
trade deals in the past, the recent presidential election has brought it to the
forefront of debate about what it does to jobs, wages, and prices in the United
States and around the world. Some people, however, still believe that freer
international trade has a significant role to play in economic growth.
Jamie Clover Adams, director of the Michigan
Department of Agriculture and Rural Development (MDARD), is one of those people
who sees the benefits of trade. International trade has been a significant
economic driver for the agricultural industry for many years, with Michigan
bringing in about $2.8 billion in agricultural exports in 2015. Clover Adams
was mostly interested in how trade helps Michigan residents.
“Trade benefits food and agriculture in a number of
ways, one being jobs,” she said. “Jobs primarily in our rural community, but
not always.” Clover Adams said that about 26,000 jobs in the agricultural
processing sector alone are because of Michigan’s impressive exporting, further
benefiting local workers. She went on to discuss how trade also supports jobs
across the entire agriculture supply chain, including people in export
logistics and the drivers and pilots who transport the goods.
Michigan is unique in that it has a wide variety of
agricultural commodities produced, which provides more opportunity for export
growth. Some of those goods, Clover Adams said, include dairy, sugar, and
apples. “We need, particularly with our friends to the north in Canada, more
opportunities for our dairy products there. I’d like to see more opportunity
for sugar and apples in Mexico.”
When asked what steps can be taken to expand the
exports of dairy, sugar, and apples, Clover Adams said that “there’s some ways
NAFTA could be modernized that would help those sectors—but there should be free
trade that gives our folks a chance to compete rather than the non-tariff trade
barriers that tend to be put up.” Some of the non-tariff trade barriers that
currently exist include the quota of U.S. milk that can be exported to Canada
and regulatory barriers on apples that can be exported to Mexico.
“We need trade; we can’t just say ‘if we don’t get our
way, we’ll take our marbles and go home,’” Clover Adams said. “Exports to
Mexico have increased 215 percent and our exports to Canada have increased by
191 percent, so the numbers speak for themselves.” She believes that developing
a more modern NAFTA can be done without eliminating the agreement, and it is a
vital part of Michigan’s future economic growth.
Outside of the NAFTA agreement, Clover Adams expressed
interest in pursuing other markets with growing potential. “To me, China is the
key,” she said. “They’ve got the people and the market, and we really need to
be there. There are other opportunities in South Korea or Thailand…. In the far
future, maybe in 30 to 40 years, Africa. They’re going to have to have food at
some point, and there are opportunities there—it time to start laying the
groundwork.” Michigan has already begun to tap into the agricultural markets of
China, Thailand and South Korea. These locations have become Michigan’s third, fourth
and sixth largest export markets, respectively. With Africa’s growing
population and reducing arable land, economists believe that many regions on
the continent are becoming valuable investment areas for future food export.
Despite agricultural trading growing tremendously
within the past two decades, there is growing skepticism and animosity towards
trade, especially free trade. When asked about this trend, Clover Adams said, “it has created a lot of uncertainty at a time when prices are low across the
board for every commodity. That uncertainty leads to processors not making
investments until they see how this is all going to work out, and that’s never
good.”
Combatting this uncertainty from
outside investors and farmers alike has become a priority, she said. “I think
we need to keep talking about the importance of exports in agriculture and
food,” Clover Adams said. “There is an advantage for food and agriculture, and
we need to remember that when we renegotiate these agreements.” She also said
it is important to remind foreign buyers that they are important, valued
participants who are crucial to the food and agricultural industry as a whole.
Furthermore, MDARD
has taken up initiatives dedicated to showing the advantages trade brings to
the food and agricultural community. “We have a year-long social media campaign
where we talk about a different Michigan commodity each month and describe how
trade is important to that industry. On the national level, working through
national trade associations, [we are] at the table providing information on
what NAFTA, China, or others mean to Michigan growers and Michigan food
companies,” Clover Adams said.
 The Michigan Department
of Agriculture & Rural Development’s International Marketing Program
partnered with Euromonitor International, one of the world’s leading market
research firms, to develop export opportunity analysis reports for 14 key
Michigan food and agricultural industries.
As exports become
increasingly important in the food and agricultural industry, it is critical to
monitor trends worldwide. As markets in Asia, South America, and other regions
open up more to trade, knowing the emerging export markets and opportunities
will help Michigan companies stay ahead of the game.
The Euromonitor Hotzone
Reports are designed to assist companies in mapping out an export strategy for
2017 and beyond by highlighting consumer trends as well as historical and
forecasted consumption. Available reports include alcoholic
beverages, apples, blueberries, dairy, dry beans, energy breakfast bars, honey,
hops, onions, pickled products, popcorn, potatoes, snack and savory goods, tart
cherries, and wine.
All reports are
available to Michigan food and agriculture companies at no cost at this page: https://miagexport.com/. If your company would like help
accessing the reports or entering into any of the above markets, contact the
International Marketing Program.
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“Fiscal year 2017 agricultural
exports are projected at $136.0 billion, up $2.0 billion from the November
forecast, largely due to expected increases in livestock, poultry, and dairy
exports. Strong foreign demand and higher prices help boost livestock, poultry,
and dairy exports by $1.6 billion, with beef, pork, and dairy leading the
increase from the last report.”
For
the full outlook from the USDA, click here.
“Q: I heard the 2016 year end export data was just released. I am sure
many readers would be interested in knowing how U.S. food and agricultural
exports did last year. What can you tell us?
A: If U.S. food and agricultural exports were a medical patient the
doctor would pronounce it “stabilized and in recovery”. Of course there is a
long way to go to get back toward the record highs of a few years ago, in
particular 2014’s nearly $150 billion, but 2016 ended up with a growth of 1%
and totaled nearly $134.9 billion. Once energy prices move up (and they are)
and foreign currencies regain some strength, economies stabilize, and good
government prevails around the world, U.S. food exports should recover as well.
That is the forecast.”
Written by Dennis Lynch, Food Export Helpline Counselor
For the full Q&A, click here.
United Fresh
June 13-15 I Chicago, IL
Specialty Food Buyers Mission at the 2017 Summer Fancy Food Show
June 23-26 I New York, NY
Reg. ends May 12
Food Ingredients Buyers Mission at the 2017 Institute of Food Technologists Show
June 25-26 I Las Vegas, NV
Reg. ends May 19
Focused Trade Mission to China for Retail, Food Service and Healthy Products
August 13-17 I Beijing and Ningbo, China
Reg. ends May 22
Focused Trade Mission to Hong Kong for Retail, Food Service and Healthy Products
August 17-20 I Hong Kong
Reg. ends May 22
Focused Trade Mission to Brazil for Value Added Feed Ingredients
August 29-31 I Sao Paulo, Brazil
Reg. end June 12
Focused Trade Mission to Toronto for Specialty and Natural Product
Sept. 6-7 I Toronto, Canada
Reg. ends June 14
2017 Midwest Buyers Mission
July 31 - Minneapolis, MN
August 2 - Madison, WI
August 3 - Chicago, IL
Focused Trade Mission to Mexico for Food Ingredients
Sept. 26-28 I Mexico City, MX
Reg. ends July 10
 Jamie Zmitko-Somers
zmitkoj@michigan.gov
517-284-5738
Allie Fox VanDriel
foxa1@michigan.gov
517-284-5737
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