Food Export Association of the Midwest USA

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Food Export Association of the Midwest USA Food
Export USA-Northeast
Bringing the Foods of the Midwest and Northeast
to the World
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Food Export Association of the Midwest USA and
Food Export USA-Northeast Overview
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Our Mission
Food Export Association of the Midwest U.S.A and
Food Export USA-Northeast are non-profit
organizations that use federal, state, and
industry resources to promote the export of
Midwestern and Northeastern food and agriculture
products.
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Who are Food Export-Midwest and Food
Export-Northeast?

• Private, non-profit international trade
  organizations
• Members are State Agricultural Promotion Agencies
• Work with producers in the Midwest and Northeast
• Often work with small and medium-sized producers
• Focus on products that are value-added,
  consumer-oriented
• Members promote services to the companies within
  their state
• Governed by a Board of Directors and Board of
  Trustees consisting of Secretaries , Directors or
  Commissioners of Agriculture from member states

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History

• Foreign Market Development / Cooperator program
  began in the 1950s
• Cooperator system needed expansion, political
  support
• Food Export-Midwest founded on December 8, 1969
• Food Export-Northeast founded on March 8, 1974
• Partner with Foreign Agricultural Service (FAS),
  an agency of the United States Department of
  Agriculture (USDA)
• Market Access Program (MAP) Funding

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State Regional Trade Groups
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State Regional Trade Groups
Food Export USA-Northeast One Penn Center 1617
JFK Boulevard, Suite 420 Philadelphia, PA
19103 T 215/829-9111 F 215/829-9777 www.foodex
portusa.org
Food Export Association of the Midwest USA 309 W.
Washington St. Suite 600 Chicago, IL 60606 T
312/334-9200 F 312/334-9230 www.foodexport.org
Western U.S. Agricultural Trade Association 4601
NE 77th Ave. Suite 240 Vancouver, WA 98662 T
360/693-3373 F 360693-3464 www.wusata.org
Southern U.S. Trade Association 2 Canal Street
Suite 2515 New Orleans, Louisiana T
504/568-5986 F 504/568-6010 www.susta.org
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Food Export-Midwest Members

• Illinois Department of Agriculture
• Indiana State Department of Agriculture
• Iowa Department of Economic Development
• Kansas Department of Commerce
• Michigan Department of Agriculture
• Minnesota Department of Agriculture
• Missouri Department of Agriculture
• Nebraska Department of Agriculture
• North Dakota Department of Agriculture
• Ohio Department of Agriculture
• South Dakota Department of Agriculture
• Wisconsin Department of Agriculture, Trade and
  Consumer Protection

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Food Export-Northeast Members

• Connecticut Department of Agriculture
• Delaware Department of Agriculture
• Maine Department of Agriculture, Food and
• Rural Resources
• Massachusetts Department of Agricultural
• Resources
• New Hampshire Department of Agriculture, Markets
  Food
• New Jersey Department of Agriculture
• New York State Department of Agriculture
  Markets
• Pennsylvania Department of Agriculture
• Rhode Island Economic Development Corporation
• Vermont Agency of Agriculture, Food and Markets

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Strategic Alliance

• Alliance began April 1, 2000
• One Executive Director for both groups
• We have seen many benefits

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Benefits of Alliance

• Similar tactics in complimentary markets, we have
  doubled the number of market opportunities
• Increase in overseas representative network
• Collaborative programs allow more and larger
  projects
• Program/operational efficiencies and cost savings
• More streamlined image for our overseas customers

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Products

• Focus on products that are value-added,
  consumer-oriented
• Branded food products
• Snack Food
• Convenience Food
• Natural Products
• Specialty Foods
• Private Label
• Food Ingredients
• Foodservice Products
• Feed Ingredients
• Other Value-Added Agricultural Products
• Seafood

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Benefits of Exporting

• Increase sales and income
• Diversify market risk and offset lags in
• domestic demand
• Extend product life cycles
• Use idle capacity and reduce unit costs
• Overseas markets are growing
• Overseas markets continue to open
• US manufacturers have a competitive advantage

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Performance Measures

• Actual increase in export sales
• Projected increase in export sales
• Number of new agent relationships/distributorships
  established
• Number of companies with a first time export
  sales
• New contacts between exporters and foreign buyers
  
• Number of companies who increase sales 20
  or more

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• Programs and Services

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Programs Services

• Provide export services to small, value-added
  companies

• - Exporter Education
• - Market Entry
• - Market Promotion

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Global Food Marketer

• Newsletter published bi-monthly
• Stories on Food Export-Midwest and Food
  Export-Northeast activities
• Calendar of events
• Market updates
• Marketing tips
• Column by Food Export HelplineTM
• counselor

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U.S. Foodlink

• Newsletter published bi-monthly
• International customers
• Provides trends in the food
• service and retail industries
• Features four companies from the
• Midwest or Northeast in each issue
• Features states in the
• Midwest and Northeast
• Bi-weekly e-mail bulletin
• www.usfoodlink.com

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E-Mail Bulletins
International
Domestic
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Web Site

• Reaches exporters and importers of Midwestern
  and Northeastern food and agricultural products
• www.foodexport.org or www.foodexportusa.org

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Web Site

• To assist Midwest and Northeast exporters
• - programs and services
• - benefits of exporting
• - education tools
• - activity calendar
• - important industry links

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Food Export HelplineTM

• Provides customized, one-on-one assistance to
  suppliers
• Short-term or long-term support
• Industry expert provides assistance

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Food Export HelplineTM

• Provides assistance on a variety of topics
• - export readiness
• - NAFTA rules and regulations
• - top 25 markets
• - secondary market research
• - trade event preparation
• - documentation and correspondence
• - payment and collections
• - and many more
• Participation agreement is needed

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Export Essentials

• An educational tool for beginning or advanced
  exporters
• 1. Exploring Export Options 6. Pricing, Quoting
  Terms of Sale
• 2. Market Research 7. Logistics Physical
  Distribution
• 3. The Export Marketing Mix 8. Documentation
  Procedures
• 4. Strategic Planning 9. Payment Methods
  Strategies
• 5. International Marketing Activities 10.
  Exporting - A Business of Details
• www.exportessentials.org

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Market Entry

• Research potential markets
• Meet with international buyers
• Receive assistance at international tradeshows
• Obtain sales leads from interested importers

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In-Market Representatives

• Food Export-Midwest
• China
• Hong Kong
• India
• Japan
• Korea
• Mercosur
• Mexico
• Southeast Asia
• Taiwan
• Vietnam

• Food Export-Northeast
• Canada
• Caribbean
• Central America
• France
• Germany
• United Kingdom
• Middle East
• Seafood Industry

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Market Builder Services

• Comprehensive services
• - Market Scan
• - Rep Finder
• Helps companies understand product potential
• Assists companies with making and solidifying
• market contacts
• Assists companies in determining strategic plan

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Market Scan

• Store check and distribution analysis
• Competitive product shopping
• Importation analysis
• 4. Distributor referrals

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Rep Finder

• 1. Distributor referrals
• Market visits

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Food Show PLUS!TM

• Adds value to the trade show experience
• Takes intimidation factor out of tradeshow
• Provides more potential for sales

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Food Show PLUS!TM

• - In-market briefing and local industry tours
• - Pre-show product research pricing, import
  regulations, competitor analysis
• - Targeted invitation of qualified buyers to
  exhibitor booths and setting
• appointments
• - Translation of exhibitor material for show
  visitors
• - On-site show assistance by local country
  marketing expert
• - Provides technical interpreters at the show
  booth
• - Qualifying leads from the show and conducting
  checks on the top few
• - Writing and sending a follow-up letter in the
  local language to all
• contacts

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Buyers Missions

• Brings buyers from target countries to US
• One-on-one meetings with buyers and suppliers
• Usually in conjunction with a tradeshow

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Buyers Missions

• Benefits of participation
• - Get live feedback about your products
  exporting potential
• - Learn how business is conducted in foreign
  markets
• - Make market research fun learn about the
  marketplace
• without reading lengthy reports
• - Start building relationships with key
  international buyers

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Trade Missions

• A three-day activity to bring companies to
  various countries
• Essential tools provided throughout the mission
• - ground transportation
• - interpreters

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Trade Missions

• Benefits of participation
• - receive import analysis and competitive store
  check
• - attend seminars on product and label
  requirements
• - visit local retail stores and supermarkets
• - participate in a table-top reception featuring
  products
• - meet one-on-one with local buyers

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Online Product Catalog

• Online directory of products with descriptions
  and photos
• Companies manage their online product profiles
• Receive product-specific leads from
  pre-qualified buyers

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Market Promotion

• Branded Program
• In-Store Promotions

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Branded Program

• Cost share assistance for branded products sold
  in foreign markets
• - 50 cost reimbursement of eligible expenses
• U.S. food agricultural products only
• - minimum 50 US agricultural origin
• Products not covered by another industry group
• Small companies only (lt500 employees)
• Application from a US company

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Additional Requirements

• Activities approved in advance
• Company incurs all expenses up front
• USA Origin Statement for ALL products,
  activities, and materials
• - Made in
• - Product of
• - Grown in
• US, USA, America or State name can be used

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What Are Eligible Expenses?

• Advertisements and publications
• Public relations and seminars
• Promotions and demonstrations
• International tradeshows
• - including limited travel costs
• Certain domestic trade shows
• Package and label changes

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Public Relations and Seminars

• Editorial Placements
• Space and Equipment Rental
• Duplication of Seminar Materials
• Writing of Press Releases, Press Info Packets

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Ads and Publications

• TV, Radio, Billboards
• Newspapers, Magazines, Trade Journals
• Flyers, Direct Mail
• Brochures, Pamphlets, Sell Sheets

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Print Advertising
Turkey
Germany
Canada
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Billboard Advertising
Korea
Israel
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Wrapping Advertising
Korea
- Kuwait
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POS Materials Shelf Talkers Displays
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POS Materials Posters/Banners
Turkey
United Kingdom
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POS Materials Give-Away Items
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International Trade Shows

• Booth costs
• Rented equipment, chairs, tables, lights, etc
• Freight costs
• Temporary signage
• Interpreters/Translators
• Giveaway Items (up to 1/item)
• Must exhibit in USA pavilion unless prior
  approval is granted

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International Tradeshows
Posters
Electrical
Booth Cost
This plant if rented
Chair Rental
Magazine Rack Rental
Carpet
USA Pavilion at Show
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International Tradeshows
Polagra Poznan
IFIA Tokyo
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Promotions and Demonstrations

• In-store and food service promotions
• End-of-aisle displays
• Shipment of samples
• Temporary displays
• Posters, banners, shelf talkers
• Giveaways, awards, prizes, gifts (up to 1/item)
• Demos to the trade and consumers

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Demonstrations/Merchandising Uniforms
shirts and hats for various events
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Demonstrations/Merchandising Displays
Banners
Uniforms
Temporary Display stand
Supplies
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Demonstrations/Merchandising
Demonstrations in the Middle East
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Label Modifications

• Eligibility requirements
• When REQUIRED by importing country
• Changes to existing packages, NOT for new
  products
• Must show original and modified label
• U.S. Origin statement
• Eligible expenses include
• Design costs (for required changes only)
• Translation costs
• Production/printing costs (one year supply only)
• Labor to attach stickers (if done by outside
  vendor)

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Package and Labeling
Russia
Mexico
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Ineligible Claim Examples
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Reimbursements

• Maximum request is 300,000
• Minimum request is 2,500
• First-time applicants
• - with exporting experience, initial maximum
  request is 50,000
• - without exporting experience, initial maximum
  request is 25,000

Maximum/Minimum requests are based on the
reimbursement amount
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Other Details

• Expenses incurred before approval are NOT
  eligible
• - except for pre-payment of booth/travel
  expenses
• Funding approval is based on
• - quality of the application
• - funding level available
• Five year country limit
• - additional 5 years for specific tradeshows
• 6 administration fee

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Branded Program Application

• Yearly application is required
• www.brandedprogram.org

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Branded Program Application

• Pre-qualify
• Complete the application
• - company profile
• - country marketing plan and/or domestic
  tradeshow plan
• Submit application
• - original, signed certification form
• - application fee of 250
• - samples of labels/packaging or promotional
  literature
• - Private Label and Exclusivity Agreement, if
  required

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Private Label andExclusivity Agreements

• Needed if you are promoting brands you do not own
• Exclusivity for the purpose of applying for funds
• Original signatures required

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Ineligible Countries

• Federal regulations prohibit reimbursement for
  activities in
• - Cuba
• - North Korea
• - Iran
• - Iraq
• - Libya
• - Sudan

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Program Management

• Fully automated program
• Online account management
• - submit claims
• - review account activity
• - track reimbursements
• www.brandedprogram.org

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In-Store Promotions

• Feature Midwestern products in promotional
  
• displays
• - supermarkets
• - restaurants
• - hotels
• Coordinated by in-market representatives
• Short-term and long-term impact

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Growing Export Sales
Buyers Missions
Branded Program
Export Essentials Online
Market Builder
Increased Sales from Exports
Trade Missions
In-store Promotions
Food Show PLUS!TM
Online Product Catalog
Food Export HelplineTM
Educational Seminars
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Q A