New Market Developer: January-February, 2015

Issue 1: January - February 2015

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2015 Pure Michigan Agriculture Summit

The Pure Michigan Agriculture Summit connects food buyers to food processors, producers and aggregators. This summit is a long-term commitment from MEDC's Pure Michigan Business Connect and the Michigan Department of Agriculture and Rural Development to assist in supply chain connectivity and create more opportunities for Michigan products. 

The summit will take place on Thursday, March 19 in Grand Rapids, Michigan. Buyers looking to source Michigan food and ag products are invited to attend as well as Michigan companies who are looking to make new connections or establish new distributorships invited as well. 

For more information on the summit, visit www.michiganbusiness.org/summits or contact Jodi Gruner at grunerj@michigan.gov or (517) 243-8046. To view a recap of the event in 2014, click here. 


Market Spotlight: Canada

Canada is the largest importer of Michigan food and agriculture products by generating $ 1.2 billion in 2013.The strong trade partnership between the United States and Canada helps facilitate Michigan food and agriculture exportation.

Further, the United States and Canada have similar consumption patterns that make Canada an easier consumer market for Michigan companies to understand.  Michigan’s proximity to Canada increases ease of business through similar language, culture and lifestyle. American products also have a competitive advantage over other exporting nations due to the North American Free Trade Agreement (NAFTA).

Canada’s top imports from Michigan in 2013:

·         Meat – $311 million

·         Cereal, flour, starch - $261 million

·         Edible vegetables - $151 million

Canadian per capita expenditure on food has increased significantly in the last decade and reached $2,223 in 2013. However, while overall spending has increased, some areas have slightly decreased. Though a top imported product, meat expenditure per capita has been experiencing a modest decrease.  In 2000, meat consumer expenditure per capita was $424, but decreased to $413 in 2013. This trend is expected to continue and is linked to growing concern for health consciousness in Canada. 

The changing needs of Canadian consumers are causing greater demands for healthy, natural, ethnic and other specialty products alongside the top imports.  Natural and specialty products are a part of a growing food industry trend worldwide because both domestic and international consumers want access to a variety of food product options. In Canada, there are not enough suppliers to meet the growing demand for natural and specialty foods causing buyers to look toward the U.S. to meet the needs of the growing market. Natural, gluten free, ethnic, specialty, healthy, GMO-free and organic foods are all in high demand in Canada.

Companies interested in reaching the Canadian market would benefit from an upcoming Focused Trade Mission to Canada this September 9-10. The trade mission focuses on specialty and natural products and will take companies to Toronto, Canada to meet with potential buyers and learn valuable market information. For more information about the Focused Trade Mission to Canada for Specialty and Natural Products, contact Hannah Bollinger at bollingerh@michigan.gov or 517-284-5737.  

Source: Euromonitor


Does your organization have something to share?

Does your organization have something to share that would benefit Michigan food and agricultural companies looking to export? Whether it is related to finance, insurance, or technical assistance, if it  is useful to Michigan companies, it is material that the International Marketing Program will consider sharing.

Please send any topic ideas or information to Hannah Bollinger at bollingerh@michigan.gov. All ideas, events and resources are welcome! Promotion may be via social media platforms, newsletter or the International Marketing Program webpage


Success Story: Midwest Buyers Mission Leads to International Insight for Palazzolos

Palazzolo’s Artisan Gelato and Sorbetto located in Fennville, Michigan, in the 6th Congressional District, gained new insight into foreign markets through one-on-one meetings with international buyers at the 2014 Midwest Buyers Mission in Grand Rapids, Michigan sponsored by Food Export-Midwest. This was the company’s first time attending a buyers mission and they were pleased to have participated.

When asked to evaluate his interactions with the buyers, Chief Executive Officer, Pete Palazzolo said, “All of the buyers were enthusiastic and offered valuable feedback on the market potential of our frozen dairy desserts. The buyers were very well-qualified, inquisitive and receptive.”

Buyers Missions offer small businesses a cost-effective opportunity to expose themselves to international markets without even leaving the country. Palazzolo appreciated the convenience of being able to meet with buyers from Canada, Hong Kong, India, Latvia, Malaysia, Mexico, Philippines and South Korea all in one day. Additionally, he mentioned that “gaining an understanding of the perspectives and expectations of international buyers has made me better prepared to close export sales in the future.”  

Palazzolo’s Artisan Gelato and Sorbetto offers a complete range of frozen dairy desserts including: ice cream, frozen yogurt, custard, gelato and sorbetto. Palazzolo’s strives to deliver the highest quality products possible through its commitment to using only real, premium ingredients. 

Food Export–Midwest and Food Export–Northeast are private, non-profit associations of Midwestern and Northeastern state agricultural promotion agencies that use federal, state, and industry resources to promote the export of Midwestern and Northeastern food and agricultural products. Food Export–Midwest and Food Export–Northeast administer many services through Market Access Program (MAP) funding from the USDA, Foreign Agricultural Service. 

For more information of Food Export of the Midwest’s programs and activities, please visit www.foodexport.org, or for more information on exporting resources available through the State of Michigan, visit www.Michigan.org/agexport.

Exporter's Toolbox

Every profession comes with a unique set of tools. As a food exporter your toolbox might be lacking if you aren't using all of the available resources. The following are links and articles to assist in making sales overseas:

Foreign Agriculture Service- Attaché Reports

Food Export- Country Profiles 

Euromonitor International- Blog


Current Events Corner

Recently President Obama normalized ties with Cuba, leading many to wonder what the impact on agricultural exports will be. While there are many speculations as to the implications of this new relationship, it is certain that there is opportunity for American agriculture to make a mark on the Cuban economy. Cuba, as an island nation is dependent on importing about 80% of it's food, and while the average household income is considerably lower than in the U.S., there are still a large number of consumers interested in buying American food. 


Upcoming Events

Export Seminar featuring 2014 MI Ag Exporter of the Year

February 10 | East Lansing, MI

Michigan Pavilion at the National Restaurant Association Show

May 16-19 | Chicago, IL

Michigan Pavilion at the Food Marketing Institute Connect Show

June 9-11 | Chicago, IL

Anuga Food Fair

October 10-14 | Cologne, Germany 

Michigan Pavilion at Americas Food and Beverage Show

October 26-27 | Miami Beach, FL


Sign up now to exhibit in the NRA Show or FMI Connect!

It’s officially 2015 and time to solidify the rest of the year’s marketing strategy. A proven method of reaching international and domestic buyers is through trade shows, and there are only a few spots left in the Michigan Pavilion at the National Restaurant Association (NRA) Show and Food Marketing Institute (FMI) Connect.  

There will be a Michigan pavilion at the American Food Fair Showcase at the NRA Show on May 16-19, 2015 in Chicago. The NRA Show emphasizes food service and HRI and participants in the 2014 Michigan Pavilion expect sales of $730,000. FMI Connect also offers great opportunities and takes place in Chicago on June 9-11, 2015 and will feature a Michigan Pavilion. This trade show focuses on retail food sales and last year’s participants in the Michigan Pavilion projected $2.1 million in sales.

Space is limited in the Michigan Pavilions. For more information about the Michigan Pavilions and to download the space applications, please visit the website. For questions and to register, please contact Jamie Zmitko-Somers at zmitkoj@michigan.gov with completed space applications. 

The Food Export Association of the Midwest will host buyers missions at the NRA Show and FMI Connect. The buyers missions are an opportunity to meet one on one with international buyers and promote your products.  For more information and to register for the buyers missions, visit the Food Export website.


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Get in touch with the International Marketing Program

Jamie Headshot

Jamie Zmitko-Somers

zmitkoj@michigan.gov

(517)284-5736

Hannah Headshot

Hannah Bollinger

bollingerh@michigan.gov

(517)284-5737