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Liz Smith
International Marketing Program Coordinator
We certainly have kept busy since the last edition of this newsletter and look forward to continuing the positive momentum into the holiday season. Our team continues to work hard to promote and support Michigan food, agriculture, and forest product companies servicing a variety of domestic and international audiences.
Companies of all sizes can benefit from the assistance offered by our Agriculture Development team at MDARD. In the past year alone we have worked with new businesses operating in small shared commercial kitchens, established exporters who send their product around the world, and food processors relocating from other states to join Michigan's dynamic food and agriculture sector.
Whether this is your busy season heading into the holidays, or you finally have a chance to catch a breath after harvest, we are here to support your next step! Reach out to MDARD-AgD@michigan.gov to get connected to the appropriate team member. We look forward to working with you!
Contact us at MDARD-AgD@michigan.gov for more information on our International Marketing Program!
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MARKET SPOTLIGHT
When considering new marketing and sales opportunities, South Korea may seem less accessible than our North American neighbors. However, the busy lifestyle of many South Koreans makes it a viable and profitable market for many U.S. food and agriculture businesses.
Market trends reveal some key sectors of the industry to focus on. Modern South Korean consumers are prioritizing convenience in their purchasing decisions. South Korea’s Hotel Restaurant and Institutional (HRI) food sector also continues to grow, as more people dine out to accommodate their busy lives. This trend also fuels demand for home meal replacement (HMR) in retail stores. Additionally, to supply these demands for prepared food, South Korea also has a robust food processing industry, making them a strong market for ingredient or agriculture products!
In 2021, $9.85 billion in U.S agricultural goods were exported to Korea. The highest value export category in 2021 was beef and beef products, totaling $2.36 billion. A variety of other U.S goods are also exported to Korea including corn, pork and pork products, wheat, food preparations, fresh fruit, dairy products, fish and seafood, tree nuts, and ethanol. The USDA Agricultural Trade Office in Seoul reports that the U.S is the leading source of ag products imported into South Korea.
In 2021, $163 million in Michigan food and agriculture products was exported to South Korea in 2021. According to the U.S Trade Census, some of these goods include:
- Meat and edible meat offal
- Oil seeds and grains
- Coffee
Interested in exploring your products' potential in South Korea? Food Export Association of the Midwest is hosting a Focused Trade Mission to Seoul, South Korea March 13-15, 2023.
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In October 2022, our team traveled extensively to support and highlight the Michigan specialty crop industry to domestic and international audiences. First, we assisted three Michigan-based specialty crop companies, Cherry Central, Graceland Fruit, and Shoreline Fruit exhibit at the SIAL Paris trade show October 15-19 in Paris, France.
The MDARD International Marketing Program provided these companies with discounted booth space. During the trade show, they met with existing international customers and made contact with potential customers from all over the world. This show occurs biannually and attracts over 7,000 exhibitors from 127 countries and attendees from more than 200 countries. The next edition of this show will be held in Paris, France on October 19-23, 2024.
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As the name suggests, this show features fresh produce, a wide variety of specialty crops, and further processed fruit and vegetable products. Next year, the show will be held October 19-21, 2023 in Anaheim, California - and we'll be there! Let us know if you are interested in exhibiting.
Exhibition at these shows is made possible through the partnership between MDARD and the U.S. Department of Agriculture.
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Success Story
In October, the Michigan Department of Agriculture and Rural Development (MDARD) International Marketing Program welcomed two guests from Zimbabwe, Tracy Mapfumo and Runyararo Musanhi, through the Professional Fellows Leadership Program: Advancing Young Women Agribusiness Entrepreneurs and Innovators - A Rwanda-South Africa-Zambia-Zimbabwe-US Partnership. This program operated through a partnership between the U.S. Department of State, Michigan State University, University of Rwanda, University or Pretoria, The University of Zambia, and the Chinhoyi University of Technology.
A group of 12 individuals from, Rwanda, South Africa, Zambia, and Zimbabwe were matched with local organizations in the greater Lansing region to further develop skills in agri-entrepreneurship and agri-food system innovation. Tracy and Runyararo were partnered with MDARD and had the opportunity to shadow experts across multiple fields in the food and agriculture industry, discuss ideas for implementation of their projects in their respective home countries, and expand their global professional network.
At the conclusion of their time here in Michigan, Tracy and Runyararo traveled to Washington, D.C. for a Professional Fellows Program Leadership Conference.
MDARD is proud to be involved in agribusiness and leadership development in the global food and agriculture industry.
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This information is being shared with MDARD subscribers on behalf of Food Export Association of the Midwest and the U.S. Department of Agriculture (USDA) Foreign Agriculture Service (FAS).
For the first time ever, FAS Canada is hosting a retail promotion specifically for consumer packaged foods! This retail promotion will be tested in three to five grocery units for over a three-to-four-week period in March of 2023.
The aim of this first-year promotion will be to review its success and expand the promotion into the following year up to 50 stores! As the promotion grows, more packaged products will be accepted.
FAS Canada is searching for qualified and export ready companies that are well established in the U.S. and can meet the quantity demands that will be expected of a larger grocery!
Products of interest include:
- Snacks and sweets
- Pantry stables, eg. Meal preparations, spices, condiments, soups, pasta, etc.
- Non-alcoholic Beverages
- Shelf Life of up to 9 months
- Range of SKUs
- Competitive Pricing that will allow a 35% distributor margin and 35 – 40% retailer margins while maintaining a similar RSP to the USA supermarket
Generic promotion will be provided to U.S. Food manufacturers committed to providing specific brand merchandising opportunities, such as demonstrations or on-line store advertising.
All applicants will be reviewed and selected by a Canadian grocer and contractor. Once selected, the contractor will be responsible for stickering the products and meeting Canadian Food Inspection Agency (CFIA) compliancy.
Please contact Maria Arbulu with any further questions.
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Our partners at Food Export Midwest have released the complete calendar of events they will host in 2023! Early registration discounts apply for many of the events, so plan ahead and capitalize on this great way to connect with diverse, pre-qualified international buyers.
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Pre-qualification and 2023 applications are now open for the Branded Program - a 50% cash reimbursement program offered through Food Export Midwest. Reserve your 2023 reimbursement funds today! Contact MDARD-AgD@michigan.gov to learn more.
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- Request for Proposals Opened: October 3, 2022
- Proposals Due: November 22, 2022
- Award Funding Announced: February 2023
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- Funding Opened: October 1, 2022
- Applications processed via your MDARD Economic Development team member
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Michigan Department of Agriculture and Rural Development Agriculture Development Division MDARD-AgD@Michigan.gov
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