So,

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So,

• How do I Export?
• And, do I want to?

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The topics

• How do I decide to export, and what do I need
• A real opportunity - Cuba

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Michigan Bean Commission

• Bob Green-Executive Director
• 9 Years as Executive Director
• 25 years trading

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The Michigan Bean Commission

• 100 grower funded
• Currently about 250,000 acres
• About 100 Million per year
• Number 1 in production of
• Black Beans
• Small Red Beans
• Cranberry Beans
• Export every other row

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More on Beans

• Grow 12 to 16 classes yearly
• Health Aspects
• High in anti-oxidants
• Have a DGM
• Food Pyramid

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Why the Export Market?

• Higher price?
• Domestic Market flooded?
• Larger piece of the pie?
• More margin?
• Too much production?
• Time Gap fill in?
• Excitement?

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Do I have the Capabilities?

• Computer/email/web
• Financing
• Production Time
• Quality

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What do I need to export?

• MARKETS!

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Where are the markets?

• FAS Web site is the first stop

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Now What?

• You have the countries, how can you find the
  customers?
• FAS can help you find the customers
• List of importers
• Status of current imports and origination
• Define your competitors

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Trade Shows

• Jamie will address
• Buyers stopping by, Looking for you!
• Not wandering around in country
• Passport/language

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Find the right buyers

• Meet and Greet
• Best alternative for any business deal
• Understand buyers needs and problems
• Understand their definition of quality
• Quality Control
• Meet the people/set up rapport
• Contact information a must
• Make the offer
• Small aggressive offers

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Payment! The Ultimate Goal!

• Open Invoice
• Just what it implies
• Lots of horror stories!
• Know your market
• Take time for buyer to qualify
• Some Countries/Regions never qualify
• Not an immediate way to do business

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CAD Cash Against Documents

• Bank Charges Apply yours and theirs
• Theory is no cash, no documents, no containers
• Banks in some countries seem to not know the
  procedures.
• Is it a bank or someones garage?
• Docs not picked up?
• Still have bank charges
• Other charges as well-demurrage and so on.
• Plus you still have product in wrong place

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Letter of Credit

• Certainly considered the safest
• Cost
• To open
• To amend
• To collect
• Descriptions
• Exact wording
• Grade certificate/quality certificate (stamp)
• Safety (Good and Bad News)

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Payment in Advance

• Best option
• Hardest to negotiate
• Partial payment with balance CAD
• 50-50
• Incentive for buyer to finalize

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Basis of Sale?

• INCO Terms are internationally accepted
  commercial terms defining the respective roles of
  the buyer and seller in the arrangement of
  transportation and other responsibilities, and
  clarify when the ownership of the merchandise
  takes place. They are used in conjunction with a
  sales agreement or other method of transacting
  the sale.
• International Chamber of Commerce

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FOB

• FOB (Free On Board) - The seller has fulfilled
  his obligation to deliver when goods have passed
  over the ships rail at the named port of
  shipment. All costs and risks of loss or damage
  pass to the buyer from that named point.

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CFR/CF/CIF

• CFR/CIF (Cost Freight / Cost Insurance Freight)
  - This term means in addition to deliver goods
  onto the vessel, the seller must pay the costs
  and freight necessary to bring the goods to the
  nominated port of destination. CIF term adds
  the element of insurance where the seller is
  responsible for above and for obtaining and
  paying for marine insurance against buyers risk
  of loss or damage to the goods during carriage.

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FAS

• FAS (Free Alongside Ship) - (port, after all
  origin port charges) Title and risk pass to buyer
  including payment of all transportation and
  insurance cost once delivered alongside ship by
  the seller. Used for sea or inland waterway
  transportation. The export clearance obligation
  rests with the seller.

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Other things to consider

• Shipping time/loading time
• Booking/receiving containers/truck time to
  port/ocean time/port time/truck time to plant
• Freight
• Freight Forwarders
• Importing Government regulations
• Duty/phytosanitary Requirements/NAFTA/CAFTA/
• Ocean Marine Insurance
• General Average

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But, What if there is a problem?

• Quality
• Submit samples prior to shipment
• Retain Samples
• Use the knowledge you obtained on your visit
• Freight
• Delayed Shipment keep customer informed
• Advice of Shipment

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REJECTION Negotiate!

• To Expensive to bring home
• Re-sell
• Hard to accomplish
• How big the discount
• Re-clean
• Expensive
• Create a plan
• Plant notes (mud balls)
• Ask for buyers permission to call QC
• Buyers dont like problems

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Two rules for Exporting

• Be Cautious
• Do your homework

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Questions

• "You can tell whether a person is clever by his
  answers. You can tell whether a person is wise by
  his questions."

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Cuba An opportunity?