New Market Developer, July - August 2018

New Market Developer

Issue 4: July - August 2018


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In This Issue:


Export Success Stories

Palazzolo's Benefits from Export Support

Gelato

In 2017, Palazzolo’s Artisan Dairy, participated in the Food Service Buyers Mission at the National Restaurant Show. Food Export events like the 2017 Food Service Buyers Mission and 2014 Midwest Buyers Mission have helped the business connect with both international buyers and Food Export staff.

Mr. Palazzolo credits the logistical support provided by Food Export and the International Marketing Program at the Michigan Department of Agriculture and Rural Development with the company’s exporting success. The International Marketing team recently provided assistance with Certificates of Free Sale and other export documentation to help the company meet market specific requirements for shipments to China and Saudi Arabia. Mr. Palazzolo noted “we have learned all the legal needs in regards to proper documentation and paperwork so the goods clear [customs] when they land.  [The International Marketing] Team is waiting for our calls and ready to help us with any situation that might arise.”

Read the full story here: https://bit.ly/2lph1EP


Long Road Distillers Seeks Exporting Opportunities in Canada and Scandinavia

Long Road

In 2017, Long Road Distillers attended Food Export’s Focused Trade Mission to Toronto for Specialty and Natural Products coordinated by the Michigan Department of Agriculture and Rural Development’s International Marketing Program. As a result of the trade mission, they established eight new agent relationships, and two relationships with Canadian distributors.

Kyle VanStrien, Co-Owner of Long Road Distillers recalled, “we learned a great deal about the market and legal landscape of distribution of liquor in Ontario as a result of the trade mission (along with) our contacts made with distributors and importers.”

Aquavit is a staple of Scandinavian culture, presenting a strong export opportunity for Long Road. Last year, Long Road Distillers was invited to the Spirikum Festival, an annual Aquavit festival with distillers from all over the world in Copenhagen, Denmark. They were able to utilize Food Export’s Market Access Program (MAP) funded Branded Program for the Spirikum Festival, deferring costs of travel, promotional material, exhibiting fees, social media and online advertisement and freight costs for samples. 

Read the full story here: http://bit.ly/2tHGZY1



Michigan Companies Find Success in Chicago

S & S Booth

From May 19 to 24, the International Marketing Program hosted Michigan companies at five different events, including Michigan Pavilions at The National Restaurant Show (NRA), the BAR18 Pavilion at NRA, and the Sweets and Snacks Expo, as well as the Food Export Association of the Midwest’s Food Service and Beer, Wine & Spirits Buyers Missions. Twenty-nine Michigan companies participated in the five events, and all expect an increase in sales within the next 12 months as a direct result of participation in the activities.

Participating Michigan companies made valuable connections with domestic and international buyers during the three trade shows, obtaining an average of 59.2 new contacts per company. As a result of the five events, total projected sales over the next 12 months are $4,830,000 in domestic sales and $1,731,200 in international sales.

For information on similar opportunities for your company, visit http://www.michigan.gov/exportevents. Registration information for 2019 activities will be available this fall. Be on the look-out for an announcement email from the International Marketing Program.

Pictured: Love Your Health LLC exhibiting at the 2018 Sweets & Snacks Expo


Market Spotlight: India

Taj Mahal

When considering new export markets, exporters should look towards the many opportunities present within the Indian market. India is the world's second most populous country, following China, and has been one of the fastest-growing global economies for several years. Fueled by strong consumption and international trade, the Indian economy is predicted to double between 2010 and 2020, while doubling again between 2020 and 2030.

Since 2010, India's annual agricultural imports increased more than 60% with signs of continuous growth as demand exceeds supply. In 2017, Michigan food and agricultural exports to India totaled $2.4 million. Michigan's top products exported to India are apples, pears, vegetable sap and extracts, corn, prepared fruit and nuts, vanilla, sauces and condiments.

Traditional food and grocery markets are experiencing growth within India and consumers are turning to the online food and grocery sector at a high rate. India is the fifth largest online grocery market in the Asia Pacific region with the market expected to surpass $464 million by 2021. The top food and grocery product prospects for continual market expansion include sauces and condiments, fresh fruits and vegetables, and prepared fruits and nuts.

India's urban populations have faced challenges when it comes to maintaining a healthy lifestyle, which has resulted in a market shift to "better for you" and natural, healthy packaged foods. This presents the perfect opportunity for companies with healthy and natural lifestyle products to foster a strong trading relationship with the Indian market. The popularity of products that offer reduced fat, sugar, and salt content continue to grow in popularity among Indian consumers. The Indian market can present challenges to U.S. exporters as there are high tariffs on select agricultural products such as dried fruits and vegetables. Sanitary and phytosanitary (SPS) measures also present a challenge for products such as poultry and wine. 

Businesses interested in exporting to India or learning more about their product's potential in the market are encouraged to utilize the following educational tools and services:

Euromonitor International, USDA GAIN Report: Online Grocery Market Growing with Unique Means to Reach Dispersed Consumers, United States Census Bureau


MSU Food Law Courses

Interested in learning about current food laws and regulations? Michigan State University's Institute for Food Laws and Regulations has launched online, self-paced, non-credit continuing education courses on select topics.

Courses include:

  • FSMA: Foreign Supplier Verification Program
  • FSMA: Preventive Controls for Human Food
  • FSMA: Produce Safety Rule
  • Food Labeling

The following courses can be completed in 12 weeks and have no required prerequisites for enrollment. Individuals who complete a course with a score of 90% or higher will earn a Certificate of Mastery in the designated area. 

For more information visit https://bit.ly/2x805eM.

Welcome to the Team!

Kathryn

Kathryn Kendall

Kathryn Kendall joined the International Marketing Program as an International Marketing Coordinator at the beginning of June. Kathryn has a Bachelor’s degree from Michigan State University in Animal Science and a Master’s degree from Sam Houston State University in Sustainable Agriculture, Farming & the Environment. Kathryn previously worked at AgroLiquid for 2 ½ years in the IQhub and their marketing department. Kathryn is also involved in 4-H serving as a leader. Kathryn can be reached at kendallk2@michigan.gov or 517-284-5740. Please join us in welcoming Kathryn to the team!  

Colin.jpeg

Colin Craddock

The International Marketing Program would like to welcome our newest intern, Colin Craddock! Colin is a senior at Michigan State University studying International Relations with a Minor in Italian and a Business Cognate. He is also a member of Phi Sigma Pi National Honor Fraternity. He will work with the International Marketing Program to help Michigan-based food and agricultural companies export their products globally. Welcome, Colin!


Trade Show Opportunity Survey

The International Marketing Program is currently evaluating trade shows in the U.S. to add to the 2019 and 2020 activities available for Michigan companies, but we need your help! Please take a moment to complete the below survey to provide feedback to us as we make a decision on additional shows.

Follow the link to add your response: http://bit.ly/2J7RoSx.


Free World-Wide Credit Report Services

Would your food and agriculture company like to evaluate a prospective international buyer before entering into an agreement? In partnership with the Van Andel Global Trade Center, the International Marketing Program is offering a new service providing Worldwide Credit Reports for Michigan food and agriculture companies. Qualifying companies are eligible to receive two (2) Worldwide Credit Report free of charge.

Depending on the 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
  • and/or Payment History

For information on how to request a credit report, visit: http://bit.ly/2kaWjYO


Upcoming Events

MDARD Trade Mission to China led by Director Gordon Wenk
Sept. 17-21 | Beijing & Guangzhou

Michigan Pavilion at Americas Food and Beverage Show
Oct. 1-2 | Miami, FL

Michigan Pavilion at SIAL Paris
Oct. 21-25 | Paris, France

Emerging Trends Focused Trade Mission to South Korea
Nov. 5-6 | South Korea
Registration ends Aug. 10

Food Show Plus! Hong Kong International Wine & Spirits Fair
Nov. 7-10 | Hong Kong 


MIAgExport.com

Are you a Michigan-based food and agriculture company that is currently exporting or is preparing to export your products? The Michigan Department of Agriculture and Rural Development's International Marketing Program has the perfect tool for you: MIAgExport.com.

The MIAgExport site provides the following free information to Michigan food and agriculture businesses for 15 industry sectors:

  • Consumer Trends
  • Emerging Export Markets
  • Historical and Forecasted Consumption Data
  • Global Trade Growth

Access the reports at https://miagexport.com/.


Get in Touch with the International Marketing Program

Jamie Zmitko-Somers

Jamie Zmitko-Somers
zmitkoj@michigan.gov
517-284-5738

Allie Fox VanDriel

Allie Fox VanDriel
foxa1@michigan.gov
517-284-5737


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