New Market Developer: March - April 2020

New Market Developer

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In This Issue: 

Canadian Flags

Market Spotlight: Canada

This month we will take in-depth look at our northern neighbor Canada and its exciting market potential for Michigan food and agriculture companies. According to the USDA Foreign Agricultural Service, Michigan food and agricultural exports to Canada totaled more than $813 million in 2019. Canada remains a top market for U.S. food exports, particularly in the categories of bakery goods, snack foods, fresh and processed vegetables and fruits, pork, beef, and more.

 

Changes in demographics are important for exporters to consider, as there are more Canadians over 65 years old than under 15 years old. Health conscious senior citizens have become a fast-growing age group; Michigan exporters may look to tailor product sizing and packaging to meet this increased demand for health-oriented food.

 

With a close geographic proximity, and similar culture and customer preferences to the U.S., Canada provides a great opportunity for Michigan exports. The new U.S.-Mexico-Canada Agreement (USMCA) will further strengthen our agricultural relationship with Canada, ensuring preferential market access for U.S. agricultural exporters and expanding commitments to fair and science-based trade rules.

 

Specialty and natural product companies can learn more about the Canadian market by attending the 2020 Focused Trade Mission for Specialty and Natural Products in Toronto, Canada. This event takes place September 2-3, 2020. In addition to one-on-one meetings with buyers and immersive retail tours, the event also provides pre-event custom product research – including market overview, importation analysis and more – as well as an education session on labeling and a market briefing by local USDA Foreign Agriculture Service.  

 

Early registration for this event is April 13, 2020 and costs $400.

 

For more information or to register click here.

 

Sources: Data statistics and export numbers credited to USDA/FAS Internal Export Report from Canada, USMCA: Benefits for American Agriculture report


2020 Ag Exporter of the Year Applications Now Open!

Are you a Michigan food and agriculture company growing substantially in the global marketplace? If you are, you could be the state’s next “Ag Exporter of the Year.” 

 

Each year, the Michigan Department of Agriculture and Rural Development recognizes a leading food or agriculture exporter by presenting the “Michigan Ag Exporter of the Year” award to a deserving company. The award recognizes outstanding companies for their efforts to increase exports of Michigan food and agriculture products.  

 

Companies of all sizes are encouraged to apply. Eligibility is limited to Michigan food and agriculture producers, manufacturers, and shippers that are aggressively pursuing international markets and increasing export sales. Products must be more than 50 percent grown, processed, or manufactured in Michigan. 

 

The winner of the “Michigan Ag Exporter of the Year” award is selected by international trade industry representatives based on export growth, innovation, and the pursuit of new export markets. 

 

The Michigan Ag Exporter of the Year award was first awarded in 2006. Previous winners include Sklarczyk Seed Farm, Dr. John’s Candies, Bayside Best Beans, Star of the West Milling, Continental Dairy, Connor Sports, Graceland Fruit, Cherry Central, Zeeland Farm Service, Walters Gardens, Honee Bear Canning, Cooperative Elevator Company, and Michigan Apple Committee.

 

Applications are due by 5:00 p.m. on Monday, March 16, 2020.

 

For more information and an application, visit, www.michigan.gov/agexport or contact Jamie Zmitko-Somers at 517-284-5738.


New Series: 3 Steps to Maximize Foreign Buyer Meeting Success

We're introducing a new series, 3 Steps to Maximize Foreign Buyer Meeting Success. For the next three issues we will share tips and tricks to get the most of your foreign buyer meetings! We are breaking it down into three basic sections: preparation, the meeting, and follow-up.

 

3 Steps to Maximize Foreign Buyer Meeting Success: Preparation

 

Trade shows, buyers missions, and trade missions are important elements to securing export success. In the next few editions of the New Market Developer, we’ll share valuable tips and information about the process of engaging with foreign buyers. This edition will provide tips on the first step to success: meeting preparation. Approaching potential buyers being prepared and knowledgeable about what your brand can offer is key to delivering a perfect pitch.

 

Meeting Preparation: Reviewing buyer profiles, often supplied beforehand by the trade show or buyers mission organizers, can provide your team a better idea of potential sales opportunities. Take note of important attributes and products of interest of the buyers have, as well as their shipping and quotation preferences. Additional research on countries can be conducted with the USDA Foreign Agriculture Service’s marketing and FAIRS regulatory reports. Food Export's Export Essentials: How to Prepare for Meetings with Foreign Buyers has additional insights and information. Visit Food Export's Export Essentials Online Overview Here.

 

Establish Your HS Code: Harmonized System (HS) codes are used to classify traded products by customs’ authorities worldwide. The international system utilizes six digits, and the US adds an additional four digits to create what is known as the Schedule B number. The US Schedule B numbers can be looked up at the US Census Bureau's Foreign Search Engine. You can also check duties and taxes; for FTAs, use the AG Tariff Tracker on the USDA FAS website or Import Tariff reports at the International Trade Administration.

 

Bring specifics: Having HS codes also allows vendors to know the requirements needed for their products. Additionally, providing pricing in printed hard-copy form helps present your team as prepared and thorough. For additional information on meeting buyer expectations, check out Food Export's Webinar: Export Essentials: Keys to Meeting Buyer Expectations. Having a basic understanding of price and shipping costs can remove some follow-up legwork later, but it also indicates to buyers that you have done your homework. Buyers also often appreciate examples of current packaging and samples to see and taste.


Success Story

McClure's

McClure’s Pickles has successfully exported their products all over the world with help from the International Marketing Program at MDARD. Grow your business and become an international export success by contacting us at MDARD-MiAgExport@michigan.gov.

 

View the video here.


Upcoming Events

National Restaurant Association Show

May 16-19, 2020 | Chicago, IL

 

Food Service Buyers Mission at the NRA Show

May 16-18, 2020 | Chicago, IL

Early Registration Deadline: March 13, 2020

 

BAR20 at the National Restaurant Association Show

May 16-19, 2020 | Chicago, IL

 

Beer, Wine, & Spirits Buyers Mission at BAR20

May 18, 2020 | Chicago, IL

Early Registration Deadline: March 13, 2020

 

Sweets & Snacks Expo

May 19-21, 2020 | Chicago, IL

 

Focused Trade Mission to New Zealand

June 21-23, 2020 | Auckland, New Zealand

Final Registration Deadline: March 30, 2020

 

Focused Trade Mission to Australia

June 24-25, 2020 | Sydney, Australia

Final Registration Deadline: March 30, 2020

 

Summer Fancy Food Show

June 28-30, 2020 | New York, NY