In This Issue:
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We're excited to welcome Giuliana Cusumano as our newest International Marketing Program Intern! Giuliana joined the team at the beginning of January.
Education: Giuliana currently attends Michigan State University with a Major in International Relations and a Minor in European Studies and is planning to graduate in Summer 2020. She is a member of the co-ed pre-law fraternity on campus, Kappa Alpha Pi, as well as MSU Outdoors Club.
Experience: Giuliana is also a clerical assistant on campus at the MSU Language Center in addition to her internship with the International Marketing Program. She worked as a resident orientation leader for Michigan State during summer of 2018.
Fun Facts: Giuliana spent last spring semester abroad in Budapest, Hungry at Corvinus University. She also loves to learn languages! She is semi-fluent in French and knows conversational basics in Arabic and Hungarian.
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This month we will take an in-depth look at the Australian and New Zealand markets. These two countries southeast of Asia are home to around 30 million people, and both have become exciting markets for Michigan and U.S. food and agriculture companies.
Australia
Australia, one of the most rugged countries on Earth, is also a great export destination for U.S. and Michigan ag products! Australia is a wealthy and industrialized nation that has committed itself to free trade. There has been strong growth in ag exports into the country, and from 2017 to 2018, Michigan increased its exports into the region by 12.3%, totaling over $8.3 million in 2018. Since 2005, the U.S. and Australia have been engaged in a free trade agreement, and most tariffs on agricultural products have been eliminated. Several key U.S. exports into Australia that have been successful include pork for further processing, distilled spirits, cheese, and grocery products.
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Doing business in Australia is relatively straightforward; the U.S. and Australia share a similar culture, an identical language, and business practices are largely the same. Today, Australia is the 19th largest U.S. agricultural export market and is expected to remain a stable trade partner long into the future.
Source: U.S. Census, USDA Foreign Ag Service
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New Zealand
New Zealand is one of the most beautiful nations in the world, with massive mountains, rolling plains, and lush forests. Like Australia, New Zealand is a democracy that holds free and fair trade as a strong ideal, and the country’s GDP has been growing steadily at around 3% in recent years totaling $205 billion in 2018. Being a relatively small island, this nation of only five million people relies on imports for many goods, food and ag being especially important. From 2017 to 2018, U.S. ag exports into New Zealand grew an astounding 16%, totaling $518.5 million in 2018. U.S. exports of food preparations, dairy, pet food products, and fruits have seen strong growth in the country, and New Zealand offers itself as a great opportunity for companies that produce these products.
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New Zealand has a rapidly aging population, and by 2026 over 22% of New Zealanders are expected to be over 65 years old. Consumption patterns have reflected this, as there has been growth in people going to restaurants, consuming prepared food, and eating healthier. Today, citizens of New Zealand generally have a preference for healthy, organic, fresh, and environmentally friendly food products.
Source: U.S. Census, USDA Foreign Ag Service
Ready to explore these markets?
Trade Missions
If you are interested in either of these potential markets, Food Export is offering back-to-back Focused Trade Missions to New Zealand and Australia in 2020. The New Zealand Trade Mission will take place June 21-23, 2020, and the Australia Trade Mission will begin immediately after June 24-25. Both trade missions will provide companies with an opportunity to meet one-on-one with qualified buyers, go on retail store tours, and attend trade receptions. The early registration deadline for both missions is February 21 and the final deadline is March 30.
To learn more or register for the Trade Mission to New Zealand, click here.
To learn more or register for the Trade Mission to Australia, click here.
This month we're joined by Food Export Helpline's Dennis Lynch to answer a question about Incoterm changes for 2020!
Q: An earlier article about Incoterms® 2020 reported significant changes which included eliminating a few of the terms and adding in new ones. What do you think happened with all those changes and what is your take on the new Incoterms® 2020?
A: Media started speculating about the terms information more than one year ago, and their speculations seemed valid and reasonable. Incoterms (International Commercial Terms of Sale) were first introduced by the International Chamber of Commerce (ICC) in 1936 to help streamline negotiations of contracts and communications and payments in international trade. Incoterms are designed to be made part of a sales contract in which they also have specific expertise. But many small and medium size exporters use them as quotation devices on proforma invoices and in themselves are contracts of quotation, price and delivery and payment terms. Incoterms have been revised in 1990, 2000 and 2010 and now 2020.
Click here to read more
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The International Marketing Program is partnering with the Van Andel Global Trade Center to provide Michigan food and agriculture companies with a free credit check on potential international buyers. Details such as operations, stability, and profitability are included in the report to help in evaluating customers and partners.
Qualifying food and agriculture companies are eligible to receive one (1) Worldwide Credit Report free of charge. 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 payment history.
Looking to complete an essential step in your risk management strategy and receive in-depth information on potential export partners for free? Click here to learn more and get started today!
Grand Traverse Distillery (GTD), a premium spirits company located in Traverse City, Michigan, in the 1st Congressional District, participated in Food Export’s Beer, Wine, & Spirits Buyers Mission at the National Restaurant Association (NRA) Show in 2017, 2018, and 2019. GTD also participated in the 2019 Market Builder Program for Southeast Asia.
The Beer, Wine, & Spirits Buyers Missions connected GTD with buyers from countries around the world. During the mission, the company participated in a special culinary event in which their spirits were incorporated in professionally prepared drinks and served to the buyers. From the 2019 mission, GTD saw interest from buyers from El Salvador, Colombia, and Bulgaria, and projected $150,000 in future sales.
Click here to read more
Natural Products Buyers Mission at the Natural Products Expo West 2020
March 4-5, 2020 | Anaheim, CA
Early Registration Deadline: January 10, 2020
Expo ANTAD
March 30-April 2 | Guadalajara, Mexico
Focused Trade Mission to New Zealand
June 21-23, 2020 | Auckland, New Zealand
Early Registration Deadline: February 21, 2020
Focused Trade Mission to Australia
June 24-25, 2020 | Sydney, Australia
Early Registration Deadline: February 21, 2020
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