In This Issue:
 In 2017, Michigan exported more
than $168 million in food and agricultural products to China. The growing
demand for quality American products makes China the state’s second largest
export market. The Michigan Department of Agriculture and Rural Development will lead its third food and agriculture Trade Mission to China,
September 17-21, 2018, to explore these growing trade opportunities for
Michigan businesses. The trip will visit
China’s capital city, Beijing, and northwestern business hub and port city, Guangzhou.
The mission will help participants gain valuable insight into the
Chinese market through retail tours and briefings by the U.S. Department of Agriculture in China. Pre-scheduled
one-on-one meetings with qualified Chinese buyers will offer participants the
opportunity to connect with trade partners and foster relationships. Participants in the 2017 MDARD China Trade Mission reported $860,000 worth of projected export sales. Companies
interested in participating can find registration details at www.michigan.gov/ChinaTM. Space is
limited to 12 Michigan companies, and registration ends June 22. For more information, contact
International Marketing Program Manager Jamie Zmitko-Somers at zmitkoj@michigan.gov.
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The Midwest Buyers Mission offers
Michigan companies the opportunity to connect with experienced and qualified international
buyers without the expense of leaving the state. The Food Export Association of the Midwest event takes
place August 1, 2018, in East Lansing in partnership with the Michigan
Department of Agriculture and Rural Development and is a great opportunity for
new and experienced exporters. The mission includes up to 10 one-on-one
meetings with pre-qualified international buyers looking for quality Michigan
food and agriculture products. These meetings helped 2016 participants form more than 800 new connections, which led to more than $11 million in actual export
sales.
Meet buyers from the following countries:
- Antigua
- Brazil
- Canada
- China
- Colombia
- India
- Indonesia
- Japan
- Mexico
- Myanmar
- Netherlands
- Panama
- Philippines
- South Korea
- Taiwan
- Turkey
- United Arab Emirates
- Vietnam
Products of interest at this year’s mission include retail and food
service products, private label goods, organic and healthy foods, sweet and
savory snacks, frozen or chilled products, and specialty/gourmet foods. Food
Export’s In-Market Representatives are available to provide insight
into global market trends, develop a strong market plan and find the best
suited buyer for your product. Registration
ends June 22 with discounted rates available until June 1. Interested
companies should register early as the mission only stops in Michigan every
other year and limited spots fill on a first come basis! For more information about registration and to view buyer profiles, please visit https://bit.ly/2xAdNGl.
The Michigan Department of Agriculture and Rural Development's International Marketing Program is pleased to announce a new service providing Worldwide Credit Reports for Michigan food and agriculture companies. In partnership with the Van Andel Global Trade Center, this service will provide the most up-to-date credit information on in-country businesses. Worldwide Credit Reports help companies and partners with details such as operations, stability, and profitability.
Qualifying food and agriculture companies are eligible to receive one (1) Worldwide Credit Report free of charge.
Depending on country, each report will include some or all of the following:
- Executive Summary
- Answers to Questions
- Recent Imperatives
- Legal Information
- History of Related Companies
- Trade References
- Technical Information
- Bank References
- Financial Conditions
- Payment History
Reports are developed by in-country representatives and are fully accepted by all major credit insurance firms.
To request a credit report, visit https://bit.ly/2jjkeEY and complete the Worldwide Credit report request form. For more information, contact the International Marketing Program at 517-284-5738 or zmitkoj@michigan.gov.
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The market opportunities available to Michigan exporters in Canada are boundless when considering the United States and Canada have the world’s largest bilateral trading relationship. In 2017 alone, Michigan agricultural exports totaled $951 million to Canada, with top products exported being prepared cereal, fresh tomatoes, soybeans, wood products and corn. Most consumers recognize and are familiar with U.S. products due to geographical proximity and cultural similarities.
Exporting to Canada has been duty free for many U.S. products since the creation of NAFTA, reducing costs for Michigan exporters. Since 2002, NAFTA has played a key role in more than doubling total export dollar values for Michigan agricultural products to Canada.
The International Marketing Program, along with Food Export Association of the Midwest, is providing Michigan companies the opportunity to participate in the Focused Trade Mission to Toronto for Specialty and Natural Products on September 5-6, 2018. Trade missions are designed to explore new markets while learning to understand the local food industry landscape, assess the competition, and learn about the promotion of your products. Canadian market trends are forecasting shifts toward more niche and sustainable food products driven by increased ethnic diversity, higher focus on food safety and nutrition from consumers, and vast changes in family structures. There is immense potential by attending this trade mission. Companies can register online at http://bit.ly/2HdXcNt. The cost to participate is $600 and the last day to register is June 11, 2018.
Euromonitor International, USDA GAIN Report: Canada Exporter Guide, Trading Economics
Premiumization is nothing new to the food market, but it is more relevant now as consumers are willing to spend more on product attributes that matter to them. If a customer is willing to pay a premium for a certain food product, there are usually aspects of that product that resonate with the consumer, such as high-quality ingredient sourcing, organic product lines, or superior sustainability practices.
Companies need to establish trust and loyalty with consumers to justify this premium price. Market opportunities are numerous with premium food products given aspects of the global arena. Chinese uncertainty of local land quality for food production, the lack of dairy products in the Middle East and surrounding countries, or sourcing fresher produce to Canada are all food concerns internationally that Michigan exporters can assist in.
Examples of premium products around the world include craft alcoholic beverages, artisan breads, free-range eggs, gourmet candy, and specialty coffee drinks. Asian Pacific markets like China and Japan have a long history of enjoying premium products for higher quality and higher perceived value.
Premiumization is driven by the shrinking middle class, an ageing population demographics, increased technology usage during buying processes, and pressure to be more environmentally sustainable. Maintaining premium food quality is to remain on top of what is relevant and valued from the consumer perspective. Effectiveness in premium markets requires understanding what drives consumers to the product and altering product lines to reflect consumer buying behaviors.
When considering product lines that are typically generic (e.g., milk or eggs), consumers are still likely to be price conscious unless something is worth a higher price to them, like supporting local producers or grass-fed cattle. The International Marketing Program and Food Export Association of the Midwest will offer many great opportunities for companies with premium products this fall, including trade missions to South Korea for Emerging Trends and Japan for Specialty and Retail Products. To learn more about international marketing opportunities for your premium products, contact the International Marketing Program!
Euromonitor International
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 In 2017, McClure’s Pickles, located
in Detroit, Michigan, in the 13th Congressional District, utilized Food
Export-Midwest’s Branded Program to help offset their international marketing costs.
According to Joseph McClure, Co-Founder, the greatest success from their
participation has been “helping to fund activities associated with the export customers
[like] labels, trade shows, etc. The financial burden of exports is far greater
than domestic business and having additional funding makes the process more
palatable.”
Read the full story at https://bit.ly/2FxQxZt.
The European Union’s General Data Protection Regulation (GDPR) goes into effect in May this year and replaces the 1995 Data Protection Directive. Learn more about how the GDPR will affect business around the world.
As of May 25, 2018, all companies that have operations in the European Union (EU), offer goods or services to EU residents, or monitor or profile EU residents (e.g., through online behavioral advertising) will be required to comply with the new GDPR. GDPR’s main goal is to protect the personal data of EU citizens. This refers to how the data is collected, stored, processed and even destroyed. The full extent of the term “personal data” needs to be examined in greater detail because it exceeds the scope of how similar terms are defined in the U.S.
Midwest Buyers Mission
Aug. 1 | East Lansing, MI
Registration ends Jun. 22
Focused Trade Mission to Toronto
for Specialty and Natural Products
Sep. 5-6 | Toronto, ON
Registration ends Jun. 11
MDARD Food and Agriculture Trade
Mission to China
Sep. 17-21 | Beijing &
Guangzhou, China
Registration ends Jun. 22
Michigan Pavilion at America’s
Food and Beverage Show
Oct. 1-2 | Miami, FL
Registration ends Jul. 2
Food Export's "Export Essentials Online" provides web-based learning modules to showcase end-to-end process of how to become an exporter. The easy to use modules are accessible anywhere and give you flexibility to learn at your own pace.
Chapters:
1. Exporting the Time is Right
2. Classify Your Products for Export
3. Use Market Research for Competitive Advantage
4. Take Advantage of Free Trade Agreements
5. Price Your Products for Export Markets
6. Use International Terms of Sale
7. Master International Logistics
8. Navigate Export Regulation
9. Prepare Commercial Export Documentation
10. Get Paid for Your Export Sales
11. Prepare for Meetings with Buyers
To learn more, visit http://bit.ly/2IxwXzm.
Q:
At the "Why Export" seminar in Detroit in January, you were saying
that using the term "FOB" was incorrect and even dangerous if you did
not name a geographical location. Many of us have been using FOB for shipments
in the U.S. with no problem. So what's the difference?
A: The
difference, although rather intangible until something goes wrong, is huge and
can cost you money and business, and perhaps your customer. There have been a
number of instances in the recent past where a lack of understanding of the
trade term, cost and responsivity between BOTH supplier and buyer have created
operational difficulties– quite unnecessarily, and usually because there is no
specific geographic location named. Sometimes the supplier and buyer are
working off two different sets of terms.
Read Dennis's full response at http://bit.ly/2IvoQmV.
Written by Dennis Lynch, Food Export Helpline Counselor
Get in Touch with the International Marketing Program
 Jamie Zmitko-Somers
zmitkoj@michigan.gov
517-284-5738
 Allie Fox VanDriel
foxa1@michigan.gov
517-284-5737
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