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INsight
SUSTA's INsight newsletter is published every two months.

January/February 2008 INsight excerpts

Vietnam: An Emerging Market for U.S. Exporters
FAS Opens New China Agricultural Trade Office
Peru Trade Promotion Agreement Approved by Congress
Go South! Trade Missions Yield Bumper Crop of Sales
Discover Export Resources
Asian Buyers Fish for Southern Seafood

November/December 2007 INsight excerpts

September/October 2007 INsight excerpts

Vietnam: An Emerging Market for U.S. Exporters

Vietnam’s economy has consistently averaged around 7 percent growth over the last decade. Since 2006, the country has had Asia’s second-fastest growing economy, increasing at over 8 percent per year. With over 85 million people, the second largest population in Southeast Asia, and a young, educated population, Vietnam aims to become a middle-income developing country by 2010.

Urban living standards have shown improvement in Vietnam, and a large rural to urban migration is expected to coincide with the country’s industrialization. In Hanoi and Ho Chi Minh City, the two largest urban areas, the size of the upper and middle classes has almost doubled over the last five years. Urban per capita income has also increased at a rate of 8 to 10 percent yearly, and rapid expansion in the retail sector is forecast over the next five years.

Vietnam’s accession to the World Trade Organization on January 1, 2007 also promises increased market access for exporters, improved infrastructure, and greater legislative and regulatory transparency, among other benefits.

Following in the footsteps of successful programs in emerging markets like India, Mexico and Central America, SUSTA plans to explore the potential of Vietnam’s market for southern U.S. exporters.

SUSTA has received a grant from USDA’s Emerging Markets Program to do some preliminary fact finding in this growing market in 2008. The funding will be used to identify the types of products that hold the best opportunities in Vietnam, as well as the ideal distribution channels and players to target in this market. “There’s a new wave of interest in selling to Vietnam,” says Jerry Hingle, SUSTA’s Executive Director. “And the good understanding that we’ll soon have of where we should be focusing our efforts will enable us to launch a full blown promotional campaign there.”

FAS Opens New China Agricultural Trade Office

On December 14, 2007, the U.S. Department of Agriculture’s Foreign Agricultural Service opened a new agricultural trade office (ATO) in Chengdu, China’s fifth most populous city and the capital of Sichuan province.

The Chengdu ATO is the fourth USDA office located on mainland China, with offices also located in Beijing, Shanghai and Guangzhou. With the addition of Chengdu, USDA has 102 overseas offices in 82 countries around the world.

According to USDA, in fiscal year 2007, China imported a record $8.2 billion worth of U.S. agricultural products. Consumer-ready foods such as nuts, dairy products and wine increased by 44 percent over 2006 imports from the U.S. “China is a vital market for U.S. agricultural products,” said A. Ellen Terpstra, Undersecretary for USDA’s Farm and Foreign Agricultural Services, in a statement. “It is one of the world’s largest economies and the fifth largest market for U.S. agricultural exports.”

The USDA’s agricultural trade offices provide resources for U.S. agribusinesses interested in exporting to foreign markets. Their mission is to assist in trade development and to promote U.S. agricultural, fish and forestry products. For more information on the Chengdu office and other USDA offices around the world, visit www.fas.usda.gov/offices.asp.

Peru Trade Promotion Agreement Approved by Congress

With strong bipartisan support from Congress, the United States-Peru Trade Promotion Agreement (TPA) was approved December 4, 2007. When implemented, this agreement will make 90 percent of U.S. food and agricultural exports to Peru duty-free, greatly increasing the competitiveness of U.S. products that have previously faced high tariffs in the country.

According to a statement from Acting Agriculture Secretary Chuck Conners, in fiscal year 2007, U.S. agricultural producers sold nearly $333 million in agricultural products to Peru. With a growing middle class ready to purchase high-value and consumer-ready products from the U.S., this emerging market will offer increased opportunities for exporters.

In addition to the benefits for U.S. exporters, the TPA will give Peru’s agriculture sector greater participation in international markets, resulting in the creation of more jobs in the country. According to Conners, the Peruvian economy will also gain from enhanced investment opportunities and increased prosperity.

Go South! Trade Missions Yield Bumper Crop of Sales

Two trade missions in 2007 bringing Canadian produce buyers to the states of Florida and Georgia resulted in new relationships between SUSTA region suppliers and Canadian retailers, and sales of more fresh fruits and vegetables from the southern U.S.

With the help of the Florida Department of Agriculture’s Fresh from Florida program, SUSTA’s Go South! Fresh from the Southern U.S. program brought key buyers from Ontario and Quebec to the Sunshine State for meetings with 30 produce shippers, growers and association members in January. The mission welcomed buyers from Sobeys National, Canada’s third largest retailer, and two of the country’s largest wholesale operators, Gambles Ontario Produce and Courchesne Larose, with a reception and dinner. The buyers then toured farms and operation facilities and met one-on-one with suppliers.

Following the mission, buyers purchased several types of lettuce, corn, celery, green peppers, tomatoes, cabbage and radishes from the Florida producers. One supplier reported a 75% increase in business to Canada, and another projected an increase of 40%. In all, over 32,000 cases of fresh fruits and vegetables were shipped into Canada as a result of the buyers mission to Florida.

Go South! teamed with the Georgia Department of Agriculture in April 2007 to bring another group of produce buyers to the southern U.S. Five Canadian representatives, from Longo’s, Streef Produce, Veg-Pak Produce Ltd., and Ippolito Fruit and Produce Ltd., met with 13 Georgia growers.

The buyers purchased a variety of fresh fruits and vegetables from Georgia suppliers, including Vidalia onions, green peppers, corn, zucchini, carrots, eggplant, cucumbers, green beans and butternut squash. Producers shipped at least six loads and 2,600 cartons of produce to the Canadian market as a result of the Go South! activity.

Southern U.S. suppliers of fresh fruits, vegetables and seafood who wish to join the highly successful Go South! program should contact their state Department of Agriculture. Contact information for SUSTA member states can be found at www.susta.org/staff/index.html. The Go South! program’s website is www.gosouthfresh.com.

Discover Export Resources

Take advantage of opportunities in 2008 to learn about export promotion resources available from SUSTA and your state. Together with our member state Departments of Agriculture, we plan to offer educational seminars, one-on-one meetings, and question-and-answer sessions to help you make the most of our programs. Some dates on the schedule include:

January 10 – Savannah Farmers’ Market in Savannah, Georgia
February 26 – Flavors of Carolina Show in Charlotte, North Carolina
February 26 – Pick Tennessee Products Show in Nashville, Tennessee
March 4 – Using SUSTA Resources to Boost Export Sales – Online Event

Contact your state’s Department of Agriculture to find out when SUSTA is coming to your state!

Asian Buyers Fish for Southern Seafood

In November 2007, two successful activities in Asia showcased seafood from the southern United States. Representatives from the Florida Department of Agriculture’s Bureau of Seafood and Aquaculture and the Virginia Marine Products Board brought SUSTA-region seafood suppliers to two major events for the industry: the Busan Seafood Show in Busan, Korea and the China Fisheries and Seafood Expo in Dalian, China. Both Korea and China consume large amounts of seafood and are seeking new sources to fill the demand. U.S. seafood enjoys a reputation for high quality in both markets. With consumer interest in both high-end and inexpensive seafood, China’s market holds promise for seafood exporters from the United States.

This was the fifth year SUSTA participated in the Busan Seafood Show, and the second year for SUSTA’s pavilion at the China Fisheries and Seafood Expo. Two companies exhibited with SUSTA at each trade show, where buyers expressed interest in sea clams, croaker, and ray wing, among other products. The pavilion at the China Fisheries and Seafood Show also contained a public area showcasing additional seafood products from the southern U.S. SUSTA’s in-country consultant in China arranged one-on-one meetings with key local seafood traders, and SUSTA provided interpreters to facilitate communications.

Immediate sales were made at the China Fisheries and Seafood Expo, totaling $100,000. Participants expect additional sales of $250,000 from that show, and SUSTA representatives collected 100 trade leads for southern U.S. seafood. Companies that participated in the Busan Seafood Show anticipate sales of $1.1 million as a result of the activity, and 30 buyer-seller introductions were made during the show.

SUSTA plans to continue promoting southern U.S. seafood in Asia in 2008. Details on upcoming activities at the Busan Seafood Show, China Seafood and Fisheries Expo, and other promotions can be found at www.susta.org/events. For more success stories about SUSTA seafood promotions, visit www.susta.org/about/success.html.

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