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It’s no secret the international marketplace is more dynamic than ever before! Together with Food Export Midwest, we are excited to offer two unique opportunities to gain export knowledge and expand your company’s global reach.
The first is a standalone webinar highlighting two of Michigan’s strongest food, agriculture and forest products export markets, Canada and Mexico. Recent changes implemented by the U.S.-Mexico-Canada (USMCA) trade agreement bring new opportunities and subtle challenges for experienced and new exporters alike. Join us on the dates below to learn more about how to put the USMCA to work for your company!
Then, for the first time ever, in 2022, we will be offering a six-part webinar series designed specifically for Michigan companies. This series covers export fundamentals, technical assistance, and market updates for some of Michigan’s top food and agriculture export markets. Plus, automatically qualify for a free video consultation with one of Food Export’s in-market representatives, compliments of MDARD, when you sign up for the full webinar series.
Sign up below or contact us with any questions!
Making the USMCA Work for You
Event date: Thursday, December 9, 2021 from 11 am – 12 pm EST
Cost: $25
Registration deadline: Tuesday, December 7
Featured topics include:
- Origin certification
- Who can claim origination under USMCA?
- Nine elements required at a minimum to claim origin
- The Legal Text vs. Trade Reality
- …and more!
2022 MDARD Webinar Series – Creating Confidence in Exporting
*Special Offer – 50% off + FREE bonus*
Access all six webinars for just $75 + receive a FREE Virtual Consultation (a $50 value) when you sign up for the full 2022 MDARD Webinar Series or pay $25 when you sign up for an individual webinar
Series schedule:
- January 13 – Why Export? w/ Special Guest 2021 MI Ag Exporter of the Year
- March 10 – Developing Export Readiness
- May 12 – How to Prepare for Meetings with Foreign Buyers
- July 14 – Understanding Incoterms 2020
- September 15 – China and the “Phase One” Trade Agreement
- November 10 – The U.S. Japan Free Trade Agreement
As we’ve all become too accustomed to saying…. what a year! 2021 continued the trend of disruptions across the globe from major weather events, supply chain challenges, and ongoing health concerns. Despite it all, the domestic food and agriculture industry has continued to adapt and show remarkable resilience. A few highlights from the past year include:
Record U.S. agricultural exports forecasted for 2021: Current projections for 2021 anticipate a record year for U.S. agricultural exports. Strong increases in livestock, poultry, and dairy exports were key driving factors in overall sales. Despite logistical delays which have impacted nearly every industry, U.S. food and agricultural products continue to be in high demand across the globe, driven by our continued reputation as a reliable source for high quality products. Stay tuned to upcoming editions for a Michigan-specific breakdown of these record export statistics!
Export Opportunities Expand Close to Home: The United States-Mexico-Canada Agreement (USMCA) was implemented in 2020 and continued to offer new export opportunities to Michigan companies this year despite the ongoing COVID-19 pandemic. As the top destination for Michigan agricultural exports, dairy products, processed foods, and fruits and vegetables saw strong success with our Canadian neighbors. However, consumer-oriented retail products, including alcohol, have seen the greatest surge in 2021. This bodes well for Michigan’s robust craft beverage and processed foods industries. Mexico, our third largest food and agriculture export market, has also offered unique opportunities for exporters. There is a continued demand for corn, dairy products, and processing ingredients, as well as a growing interest in healthy foods and wine. Demand for healthy or organic foods was reinforced by the continued focus on personal health, while provisions of USMCA reduce technical barriers for Michigan wine and distilled spirits exporters. Please reach out if you are interested in exploring these markets!
Emerging Markets in Southeast Asia: Vietnam, a traditional destination for U.S. animal feed and bulk commodities, has emerged as a major destination for convenience and healthy food products. Despite logistical challenges and continued tariff barriers, demand from a rapidly growing middle class and associated disposable income has retailers in urban areas seeking out new products. Additionally, as more people spend time online shopping or browsing social media while on COVID-19 lockdowns, demand for trendy, high quality U.S. products continues to surge. Similar opportunities for export growth are present in Thailand and Taiwan, as focus shifts away from China in favor of diversified market access. We offer numerous free or low-cost resources to help determine your product’s prospects in these markets!
As the New Year approaches, we welcome the opportunity to celebrate these export successes in 2021 and look for new avenues of growth for the future. Details on upcoming events, resources, and more are featured in this year-end edition of our newsletter.
Sources – USDA Foreign Agriculture Service; U.S. Trade Representative; U.S. Department of Commerce International Trade Administration
Canadian Food Inspection Agency (CFIA) Canadian Food Inspection Agency - Canadian Food Inspection Agency (canada.ca) is the federal body regulating food products manufactured and distributed for consumption in Canada. CFIA is responsible to enforce the Safe Food for Canadians Act (SFCA) and Safe Food for Canadians Regulations (SFCR). Canadian Food Inspection Agency - Safe Food for Canadians Licence Registry (canada.ca)
SFCA is a relatively new food-focus act in Canada, consolidating 14 existing regulations into one set of regulations—the SFCR. The goal of the effort is to improve the consistency of rules, reduce administrative burdens, and to enable food business innovation. SFCA was implemented force on January 15, 2019, requiring compliance by almost all businesses involved in food manufacturing, food exporting, or food importing. Compliance was mandatory on July 15, 2020 with an extension granted to small businesses to be compliant by July 16, 2021; all food manufacturers, food exporters, and food importers must now be in compliance.
Your Michigan-based food business has no doubt been asked for information by your Canadian importer-clients regarding compliance (if not, raise the question with your import partner). SFCA requires three fundamental new elements to be present to sell food into Canada: 1) licensing; 2) preventive controls; and 3) traceability requirements for the assurance of food safety.
Licensing for food businesses primarily had been focused on high-risk products like eggs, poultry, meat, and dairy via a food processing facility registration process. The new SFCA requires, all food businesses to apply for and obtain a license, including businesses engaged in importing, exporting, and manufacturing. Licenses enable CFIA to authorize persons to conduct certain activities such as identifying food businesses, collect information about the activities of food businesses and take responsive action when non-compliant activities are found. As a Michigan exporter selling to a Canadian importer, it’s important you ask for your Canadian customer’s license number to ensure they’ve registered through myCFIA (actual website) so your product will be sold into a compliant supply chain. Licenses must be obtained before a food shipment arrives at the border and cannot be granted at the border. To get the SFCA license, the importer must comply with requirements listed on the application website, which include but are not limited to providing documented preventative controls and demonstrating a traceability program is in place for the manufacturing of the food that is being imported.
Manufacturing companies located outside Canada are explicitly identified as foreign suppliers. Foreign suppliers that prepare food for export to Canada cannot apply for a license under the SFCR unless they qualify as a Non-Resident Importer (NRI).
An NRI is a person or entity importing food into Canada whose fixed place of business is located outside of the country. NRIs are allowed to apply for Safe Food for Canadians (SFC) licensure under limited conditions. US-based organizations are eligible to apply for licensures under NRI, as the US food safety systems generally provide a similar level of protection as SFCR. Canada recognizes the Food Safety systems of United States. CFIA provides a step-by-step guide to import food into Canada as a Non-Resident Importer which can be found here Non-resident importers - Canadian Food Inspection Agency (canada.ca)
There are some provisions given by CFIA where SFCA and SFCR may not apply such as:
- food carried on a conveyance (for example ferries, airlines, trains) for use by crew and passengers;
- food intended and used for analysis, evaluation, research, or exhibitions; food weighing 100 kg or less, or specific food designations like egg carton shipments of five cartons or less;
- food not sold for human consumption (for example pet food, cosmetics), and labelled as such;
- foods imported from the United States onto the Akwesasne reserve, for use by a permanent resident of the reserve;
- foods imported in bond (in transit) for use by crew and passengers of a cruise ship or military ship in Canada;
- food inter-provincially traded between federal penitentiaries.
CFIA expects food businesses subject to SFCR have responsibility of ensuring the food safety of the product and complying with Canadian regulations. Companies need to ensure the food is of a nature, substance, and quality that complies with the compositional and grade requirements designated by Canadian law. Product label, advertising, and presentation may not be false or misleading and must meet Canadian labeling requirements.
The good news, these processes and regulatory requirements are achievable for many U.S. and Michigan businesses. It's time to export Canada is waiting for your products!
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About the author: Ranjeet Klair is a food safety auditor, regulatory affairs, and quality assurance consultant based in Canada. |
The information provided by the author is solely content produced by and the perspective of the author. Publication in the New Market Developer does not constitute an endorsement of the content or author by the Michigan Department of Agriculture and Rural Development (MDARD). MDARD will not be liable or responsible, directly or indirectly, for any loss suffered or alleged to be suffered in connection with the use of or reliance upon this information provided by the author. Consult an appropriate professional for specific advice tailored to your situation. For questions, please contact Nate Engle at englen@michigan.gov
Author: Food Export
Q: I have read in multiple places via Food Export content (blogs, eBulletin, newsletter articles, webinars, etc.) that 2021 will be another record year for food and agricultural exports, better than 2020 which was an all-time high. My concern is that we have peaked now and wonder what to expect next year when economies start to normalize. What do you think?
A: A good, very timely question, I think there are a few things to unpack here. The first is that on August 26th, 2021, USDA’s Economic Research Service and Foreign Agricultural Service published their “Situation and Outlook Report”. In it they said that U.S. agricultural exports in fiscal year (FY) 2022 are forecast to reach $177.5 billion, an increase of $4 billion more than in the revised forecast for the preceding year. A fiscal year runs from October 1st through September 30th of the following year. By the time you read this we may be in or nearly in FY 2022 already.
The FY 2021 export forecast of $173.5 billion represents an increase of $9.5 billion from May’s projection, mainly due to higher livestock, poultry, and dairy exports, as well as the adoption of a new definition of “Agricultural Products.” Because of that new definition, which really means products that were not considered “agricultural” now are there has been a re-calculation all the way back statistically. FY 2021 will indeed be a record high, and the forecast is for FY ’22 to surpass that total, which remains to be seen.
International Marketing Support Helpline! To access the Helpline for your specific international marketing support-related technical questions, it is mandatory to update your registration annually. Registration opened on Nov. 1, 2021.
What is the Helpline?
Whether you’re new to exporting or have years of experience, there are always specific issues that arise where you could use some help from a trusted resource. With the Food Export Helpline™, you’ll speak with an industry-recognized expert who’ll put more than 38 years of exporting experience to work for you.
The Michigan Department of Agriculture and Rural Development's International Marketing Program is pleased to continue offering 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 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.
Author: Food Export
In 2020 The GFB (Gluten Free Bar) faced tariffs on a number of their products in the Canadian market, and the company utilized Branded Program funding from the Agricultural Trade Promotion Program (ATP) to help level the playing field and maintain their exports to this market—all in the midst of a global pandemic. With the cost-share funding support of the ATP Program, the company reported export sales of $927,000 and projected an additional $1.2 million in sales to Canada in the upcoming year.
The GFB has utilized Food Export-Midwest’s Branded Program since 2014 and has also taken advantage of a variety of other Food Export-Midwest services to grow their exports, including The Food Export Helpline, Trade Leads, and the U.S. Foodlink “Featured Product” section.
In addition to their exporting success, The GFB is also proud of their commitment to sustainability and being stewards of the environment. To demonstrate this commitment, the company became a Certified B Corporation in 2015—which means that they have met rigorous standards for social and environmental performance, accountability, and transparency. They also operate a zero-waste food production facility. To accomplish this, the company must divert 9 out of every 10 pounds of waste away from landfills through recycling, reuse, upcycling or composting. For example, through these efforts, the company managed to divert nearly 114 tons (229,000 lbs) away from landfills in 2020.
Founded in 2010 and based in Grand Rapids, Michigan, The GFB manufacturers gluten-free, plant-based bars, bites and oatmeal. Their mission is to create “good-for-you foods in good-for-you ways.” Their products can be found in over 15,000 stores across the U.S. and Canada.
Food Export–Midwest and Food Export–Northeast use funding from the Agricultural Trade Promotion Program (ATP) and the Market Access Program (MAP) to help America’s small businesses increase their exports of food and agricultural products. As these exports increase, these small businesses are creating jobs and improving the strength and stability of our agricultural economy. Food Export-Midwest and Food Export-Northeast are non-profit organizations that work in collaboration with their member state departments of agriculture and the USDA’s Foreign Agricultural Service. They offer a wide range of programs and services that help boost America’s agricultural exports.
Private Label Buyers Mission at the 2021 PLMA Show
Nov 14-16, 2021 | Rosemont, IL
Virtual Trade Mission to Southeast Asia for Natural and Organic Products
Nov 29-Dec 3, 2021 | Online
Making the USMCA Work for You
Dec 9, 2021 | Online
Creating Confidence in Exporting: Why Export?
January 13, 2022 | Online
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