Press Room

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

May/June 2003 INsight excerpts

Business Travel During Crisis
Advocating International Business Despite Global Challenges
Director's Corner
Success in Denmark
Quick Country Facts: Greece
Upcoming Events
Policy for Cancellation of FAS Funded Activities
Policy for International Travel Under MAP Program
Proposed Generic Activities for FY-2003
Reimburseable Expenses Under the Branded Program

March/April 2003 INsight excerpts

Business Travel During Crisis

Since 9/11, business travelers have felt a heightened sense of alert when preparing for meetings abroad. In addition to preparing sales materials and negotiation packages, business travelers should also pay attention to safety precautions.

Pre-Travel
Research the political, security and medical conditions in the country you plan to visit. This information is available from The Bureau of Consular (http://travel.state.gov). The Bureau is a sector of the U.S. Department of State that advises and supports our Embassies and Consulates around the world. The Bureau steps in on matters involving arrests, robberies, deaths, citizenship and nationality, notarization of documents and international adoptions. The Bureau is also responsible for issuing travel warnings and public announcements concerning conditions in countries where Americans visit or reside. Another source of information is the U.S. Embassy representing the country in which you will do business (http://usembassy.state.gov).

Consider booking business trips through travel management companies like American Express or Navigant International. These companies offer better information and tracking services than companies such as Orbitz or Expedia.

As usual, have an up-to-date passport, but bring along copies of other legal documents such as a license to verify your identity. Leave extra copies of both your passport and a detailed itinerary with your office and family in case of emergency.

Airline Policy
Airlines and airports have policies that make international travel less worrisome for business professionals. For example, airlines such as Continental, Virgin Atlantic, Delta and U.S. Airways allowed no-fee changes to tickets for trans-Atlantic flights bought in March 2003. Travelers could alter destinations, travel dates or class of service without penalty if travel is completed before the end of the year. Call your airline to find out the most recent policies on travel and ticket changes.

Hotel Policy
When reserving a hotel room overseas, some companies offer a room voucher once the hotel or online Reservation Company receives a payment via credit card or check. Travelers concerned about security that want to cancel reservations, may be allowed to do so within a certain period of time for a small fee. Many international hotels are offering travel insurance, covering legal, hospital, personal liability and money and luggage loss expenses. Contact your hotel for their up-to-date policies.

At Business Destination
Upon arrival at your destination, there are some steps you should take to ensure your safety while away. Register at the U.S. embassy. Avoid places where Americans congregate, such as certain restaurants, clubs, hotels or resorts. There is currently more potential for anti-American actions due to recent international unrest. Be as inconspicuous as possible in your dress and actions if you travel to a high danger area and cannot avoid such areas. Monitor the news so you know about current conditions, and allow time for travel changes in case any problems occur. Should any urgent situations arise, the medical emergency telephone number in Europe is 061, and the general emergency number is 112. Emergency numbers in Middle Eastern or Asian countries vary throughout the continent. Contact the U.S. embassy for details on other areas. For added preparation, you can sign up for the Warden System, a service provided by the American Embassy. The system employs “Wardens” in numerous areas. The Warden’s job is to convey official information from the embassy to the registered American citizens in his Zone whenever the system is activated. This system helps to notify visiting Americans of emergency situations if operating telecommunication systems have failed.Wardens can only contact Americans that have registered with the Embassy. Americans are therefore encouraged to register and to ensure that contact information is up-to-date.

SUSTA Policy
Since 9/11, SUSTA has employed policies to assist business travelers during crisis. When traveling with MAP Branded funds, additional costs incurred in an effort to return from a place of crisis will be reimbursed. But, companies will not be allocated additional funding for these expenses; additional expenses will be reimbursed from existing budgets. The Fly America Act (allowing the emergency use of a non-U.S. carrier) and other travel regulations, including the requirement to fly on an Economy Class ticket, remain in effect.

-Article by Intern Brandon Kaplan

Security Resources Online
State Department’s Overseas Security Advisory Council
www.ds-osac.org

CIA
www.odci.gov/cia/publications/factbook

Center for Disease Control
www.cdc.gov

IJE Travel Intelligence
www.ijet.com

Transportation Security Administration
www.tsatraveltips.us

Back to Top

Advocating International Business Despite Global Challenges

We have seen it happen time after time. When things get tough and companies need to cut back, export departments get hit first. Small companies, as well as large corporations, often consider their export business secondary. Companies with this mentality panic when economic or political security is uncertain. When exports do not represent a large department within a company or a large percentage of a company’s revenues, it is easy to justify a reduction of efforts in international markets.

Phobia of the unknown is a major contributor to the reduction of exporting during uncertain times. Many companies fear the intricacies of export regulations, customs clearance, legal issues, trademark protection, cultural issues and other potential problems.

“Is exporting worth the effort?” you may ask. “Why shouldn’t we be happy with our domestic business?”

Jose Garrido, Jr., President of Walton and Post of Miami, whose company’s sales are mostly exports explains, “In the very near future, there will only be global markets, and our domestic market will be part of them – The Americas, Europe (including Africa) and Asia. Companies marketing products in the international market will have an advantage over those who don’t. Companies who export will learn not only the strengths of their foreign competitors but also their weaknesses, thus being able to defend their products, in the future, within their own countries.”

There are a number of international business professionals that have spent years exporting. They have seen the vast opportunities that exist in the world and strongly believe in them. When our horizons are widened, there are many opportunities we can tap into. There are large developed markets where we can depend on finding a niche for our products, but there are also countries that are completely untapped. I met with the Trade Officer of Nepal, who is looking for trade opportunities for her tiny country! It is not a coincidence that so many governmental and other agencies promote exports. Among export advocates are SUSTA and other regional cooperators.

We live in a difficult period; global economic and political situation affects the way Americans do business. Shipping is more complicated than before. New security precautions, caused by uncertainty in foreign relations, make international business dealings harder than they used to be. Businesses still have to worry about foreign label requirements, language barriers and export laws. In addition, a company also has to worry about shipment delays and traveler’s insurance.

But oppurtunities still exist in foreign markets. A company that is already doing business in the global marketplace can find new niches in times like these. Bassam Sauma, President of IAS, an export trading company focusing on the Middle East saw a sharp increase in sales in the months leading up to the war in Iraq.  “Our exports to the Middle East have increased multifold. Our food supplies are now being consumed by the Coalition troops that are stationed in the region,” says Sauma. IAS’ situation depicts opportunity for U.S. exporters in a changing global marketplace. Export strategy should be a well thought out and long-term strategy that the company commits to. When changes in the global marketplace arise, companies do not have to give up exporting; instead, export strategy should be adapted to the new situation.

Exporting in a changing world can be profitable if you research the new market opportunities before you act. If your research shows that your product will not succeed in a changed market make changes to avoid potential losses. Before entering a new market, consider:

• The exportability of your products and the possibility of tailoring it
• The economic, political and social environment
• The market size and the consumer buying power
• Country laws and regulations
• Tariff and non-tariff trade barriers
• The competition
• The cost of marketing
• Pricing strategy
• Distribution

Indeed, research and implementation of export strategy will take time and cost money. “I was always able to convince my management to go international by taking the ‘one step at a time approach,’” says Randy Edler of Edler and Associates, an Export Management firm from San Antonio, Texas. “There is always some low hanging fruit out there that we have to pick before somebody else takes it away from us. As I worked mostly in Latin America, I found that the consumers in many cases are aware of our products, and they look for the consistent quality of U.S. made products. I was able to identify good distributors committed to our partnership that shared the cost of marketing and contributed to the success of the business.”

As much the differences we deal with in doing international business are a hurdle, they are also great opportunities. There are endless windows of opportunity; we just need to look for them. One of the things I learned to do, even when I worked with large corporations that had the resources, is to ask for the help from our governmental and other organizations that may offer help at little or no cost. I always found the help offered by USDA’s Foreign Agriculture Service, SUSTA, MIATCO, WUSATA and Food Export USA invaluable. The help available through these organizations translates into market research, trade shows, statistics and programs that reduce marketing expenses by half. The World Trade Centers Association also offers help for exporters at the 300 World Trade Centers around the globe. The International Chambers of Commerce and local USEAC (Export Assistance Center) are other helpful organizations.

At the World Trade Center of Greater Philadelphia we say, “It’s a big world out there! Prosper in it!” Think about the opportunities.

Joanna Savvides is the President of the WTC of Greater Philadelphia and the President of Transworld Ventures, an Export Management firm in Medford New Jersey. She is a global business development professional with broad background in consumer goods sales and marketing, project management, international trade, transportation and distribution, new product development and manufacturing. www.wtc.phila.org

Back to Top

Director's Corner

Throughout the year, SUSTA sponsors 30 to 35 activities for southern companies to meet foreign buyers. These activities are part of a comprehensive program that effectively provides a continued presence in foreign markets. The SUSTA-sponsored activities include reverse trade missions, trade missions, trade shows, training courses, culinary theatres, market development, research and promotions.

In addition to the above activities, which are funded under the USDA/FAS Market Access Program (MAP), SUSTA utilizes a several other USDA programs to broaden the services available to our companies. SUSTA has made extensive use of the Emerging Markets Programs funded through FAS. We recently completed our BRIDGES Workshop and reverse trade mission, which included 13 Latin American importers and distributors of foodservice products and 21 U.S. companies, in New Orleans. This two-day reverse trade mission resulted in 243 one-on-one meetings between U.S. sellers and the Latin American buyers.

This “BRIDGES Foodservice Initiative” is the 4th of a series of food service initiatives that consists of: 1) research, 2) a workshop for U.S. companies, 3) a reverse trade mission and 4) an export training component for southern companies. dThis program, funded by the Emerging Markets Office, complements the rest of SUSTA’s promotional efforts.

This year’s workshop also featured breakout sessions for “sales opportunities and strategies” and “export financing”. The sessions were conducted by representatives of companies that have successfully entered the market.

The SUSTA/EMO foodservice initiatives are an important and effective component of SUSTA’s programs. Included in this issue are the 30 activities and programs proposed for Fiscal Year 2003 (beginning October 1, 2003). SUSTA will continue the utilization of diverse programs in our drive to provide varied and effective avenues to enable southern companies to enter and prosper in foreign markets.

Back to Top

Success in Denmark

The U.S. exports $10.1 Million in tree nuts a year to Denmark. According to Foreign Agricultural Service research, Denmark represents an opportunity for U.S. exporters of tree nuts. Therefore, SUSTA, in tandem with the Georgia Department of Agriculture, has promoted pecan consumption in Denmark by engaging the public relations firm of Jop, Ove & Myrthu, as part of an overall strategy to improve exports for U.S. pecan growers by increasing awareness of the nut.

SUSTA’s efforts to raise awareness about pecans in Denmark have been successful. In September 2002, Good Morning Denmark, a popular morning program that airs on Denmark television, featured pecan recipes prepared by Denmark’s famous celebrity, lawyer, mountain climber and nutritionist, Ms. Lene Gammelgaard. The audience for Good Morning Denmark is estimated at over a half-million viewers. In addition, the famous chef Ulrich Boesen wrote an in-depth article on the pecan for the Jyllands-Posten, a leading Danish newspaper. Finally, over five thousand new brochures featuring photographs and pecan recipes were distributed to 79 of the top grocery stores across Denmark.

Corry de Wit, Managing Director of Georgia’s European office in Belgium, who worked closely with SUSTA on the Denmark pecan initiative and SUSTA’s Director of Generic programs, Tiffany Landry who traveled to Denmark during the promotion, attended a luncheon event at the U.S. Embassy in Copenhagen. Invited guests included food specialists, journalists, importers and suppliers of pecans. The lunch featured unique pecan dishes. Also present at the luncheon were the two largest importers of pecans in Denmark, Trope-Snacks and Jan Import.

In all, the first activity for pecans in Denmark was a huge success. Plans to continue marketing pecans to Denmark’s consumers with the help of the major importers are underway for 2003. SUSTA obtains funding from the USDA’s Foreign Agricultural Service to conduct generic activities, like Denmark’s pecan awareness program, all over the world. The side box contains a list of proposed generic activities for the 2003 fiscal year.

Back to Top

Policy for Cancellation of FAS Funded Activities

For activities that began before June 1, 2003:

MAP program participants are advised of the following policy for cancellation, due to security concerns, of FAS Funded Activities.  If a participant cancels or postpones an approved activity (including travel), MAP program funds may be used to reimburse documented, non-refundable fees associated with the activity cancellation or postponement.

Participants must first request in writing a waiver of each non-refundable fee from the service provider charging the fee.  Reimbursements of non-refundable fees will come from existing program budgets (additional funds will not be provided to cover fees or to reschedule activities).  FAS will continue to monitor international situations and the need to extend this policy.

Back to Top

Policy for International Travel Under Map Program

Until further notice, participants in the MAP program should follow the steps below before traveling internationally to participate in approved MAP activities.  International travel conducted contrary to the guidelines will not be reimbursed.

Notify the FAS Field (FAS/F) office in the country to which you will travel.  (Letters, emails and fax notification is acceptable.)  Request that the FAS/F office respond back to you (in writing) indicating they received your message.  (File the response for program auditing purposes.)  FAS/F offices will not approve travel; offices will acknowledge receipt of notification.

The FAS/F response may advise you to postpone your planned travel.  If the FAS/F response does not specifically prohibit travel to a country, it is your responsibility to decide to travel.

If you do not receive a response, contact the office by telephone to confirm that the office received your notification and will respond in writing.

FAS/F offices maintain authority to instruct or to advise against travel to a country based on the situation there.

Keep abreast of travel warnings issued by the Department of State at www.travel.state.gov/travel_warnings.html.

Back to Top

Proposed Generic Activities for FY-2003

Read future issues of INsight for details on these events.

AFRICA: Food & Hotel South Africa & RTM*  
ASIA: Hong Kong Food Service Seminars, Japanese Nursery Display & RTM, Pecan Promotion in Japan, Food & Hotel Asia Show, Japan Plant Trading Network, China Promotion, Korea Trade Show & Mission   
EUROPE: IPM & Southern Nursery Assoc. RTM, Baltic Food Promotion Project, E. European In-store Promotion & RTM, European Seafood Exposition, Food & Beverage Show Athens, Pecans in Denmark, World Food Moscow Trade Show, Sweet Onion RTM, UK: In-store Promotion, EU Seafood Initiative, EU Regional Food Initiative, Organic Initiative   
LATIN AMERICA: Chile VINSUD Show, RTM & Tasting, Chilean Supermarket Show, Central America Foodservice, Dominican Republic In-store Promotion   
NORTH AMERICA: Christmas Tree RTM, Jalisco Mexico Fruit & Vegetable, “Go South!” Canada   
WORLDWIDE: Frozen Food Institute, Food Distributors International, Consolidator Assistance, Pet Food Reverse
EMERGING MARKETS: Export Training Program - S. Carolina, Foodservice Initiative-Morocco, Foodservice Initiative-Thailand & Malaysia

*RTM denotes a reverse trade mission.  SUSTA will bring foreign buyers to the U.S. to meet companies.  

Back to Top

Reimbursable Expenses Under the Branded Program

Eligible Branded participants may be reimbursed up to 50% for the promotional activities listed below.

Trade Shows

• Booth construction (non-permanent display)
• Booth space rental
• Exhibition fees
• Freight for samples (to & from show)
• Freight for booth (to & from show)
• Rental of equipment - hotplates, freezers, electrical/water supply, furniture, shelving, carpet, etc. and the labor charges to install them  (Purchase of equipment is not eligible.)
• Travel costs for 2 company employees exhibiting at an international trade show only
• Translator/demonstrator/chef/hostess wages – Hourly wages of the independent contractor providing booth assistance is eligible. (Company or foreign distributor employee wages are not eligible.)
• Demonstration supplies – purchase of disposable cups, spoons, napkins, toothpicks, etc.
• Posters or signs – production costs for items made for temporary displays
• Directory listing or advertisement
• Promotional Gifts/Giveaways – pens, key chains, balloons, etc. (No more than $1.00 per item is reimbursed)
• Printed sales materials
• Booth construction (non-permanent display)
• Booth space rental
• Exhibition fees
• Freight for samples (to & from show)
• Freight for booth (to & from show)
• Rental of equipment - hotplates, freezers, electrical/water supply, furniture, shelving, carpet, etc. and the labor charges to install them  (Purchase of equipment is not eligible.)
• Travel costs for 2 company employees exhibiting at an international trade show only
• Translator/demonstrator/chef/hostess wages – Hourly wages of the independent contractor providing booth assistance is eligible. (Company or foreign distributor employee wages are not eligible.)
• Demonstration supplies – purchase of disposable cups, spoons, napkins, toothpicks, etc.
• Posters or signs – production costs for items made for temporary displays
• Directory listing or advertisement
• Promotional Gifts/Giveaways – pens, key chains, balloons, etc. (No more than $1.00 per item is reimbursed)
• Printed sales materialsPrinted sales materials  

In-store Demonstrations/Displays

• Demonstration booths (non-permanent material)
• Posters or banners
• Printed sales materials* (sales sheets, brochures, leaflets, shelf talkers, etc.)
• Freestanding temporary displays
• Promotional Gifts/Giveaways
• Rental of floor space in stores.  This includes end-of-aisle and gondola displays and space rental for promotional materials (i.e. demonstration booths, freestanding cardboard displays, signage, etc.)   

Media Advertisement

• Design, production and broadcast time expenses for radio and television
• Design and production of videos or CDs.

Print Advertisement
Design/formatting/photography expenses associated with print advertising such as:

• Banner Ads (web)
• Billboards
• Grocery Circulars
• Magazine Ads
• Moving Ads (on buses or trucks)
• Newspaper Ads

Label and Packaging – (Changes to packaging and labeling are only reimbursable if required by the foreign country)

• Design modifications and production of packaging, labels, or stickers to meet foreign country’s labeling requirements.

*Brand name of the product and a U.S. statement of origin should appear on your product labels and all materials produced with Branded funds.

Back to Top

Quick Country Facts: Greece

Agricultural Imports: $3.544 billion
Food Imports: $2.027 billion
Per Capita GDP: $11,925
Population: 11 million

Trade Shows: Retail/HRI Olympic Sales Mission, International Food & Drinks Expo

Good Prospects: Plants, frozen foods, seafood, meat, dairy, nuts, dried fruits, wine, beer, cereals, organic products, vegetable oils, beverages, & snacks.

Market Summary: Greece’s economy has improved since its admission to the EMU.   It is the 15th most popular tourist destination in the world, with tourism comprising about 7% of the GDP.  Tourism is expected to double to 25 million visitors for the 2004 Olympic Games in Athens, creating opportunity in the HRI industries.  New markets exist for ethnic and high-quality foods. Yet, there are restrictions on poultry, beef, soy and corn products.  

Back to Top

Upcoming Events

U.S. Garden Showcase & Trade Mission
September 8-12, 2003
(Optional Hokkaido tour Sept. 4-6)

In September, SUSTA and Food Export USA will host a U.S. Display Garden Showcase of U.S. nursery products and trade mission to Japan.  The display will feature plant varieties from growers in the southeast and northeast U.S., shipped and planted in advance.  You may participate in the program even if you do not send plants.  A one-day showcase/trade show featuring a seminar and buyer-seller meetings at the display garden will be included in the trade mission to nurseries and botanical gardens.  Download an application, and read more information at JapanGarden.pdf. Direct questions to Jane Storres at (410) 841-5770. 

Horticulture Reverse Trade Mission
Atlanta, Miami, Puerto Rico
August 2003

If your company supplies large palm trees or other large plant materials that thrive in dry conditions, our Greek buyers are looking for you. This summer, SUSTA will bring a group of buyers for the 2004 Olympic Games in Athens, Greece to the U.S. The group will attend the Southern Nursery Association trade show on August 1. After the show, they will travel to Miami and then Puerto Rico to visit company nurseries. To meet with the buyers at the SNA show, contact Jane Storres at (410) 841-5770. Growers in Florida should contact Ray Rafie at (305) 248-3311 x231. Puerto Rican growers may contact Maria Batista at (787) 765-2727 x4080.

Colombia Reverse Trade Mission
Oklahoma & Maryland
August 2003

Regional companies will showcase food products for Colombian foodservice buyers, importers and distributors. The buyers will visit Oklahoma and Maryland during the course of a five-day stay in the U.S. The buyers will also visit company plants and supermarkets. U.S. participants can establish and strengthen relationships with buyers and importers from Colombia. To participate, contact Haidar Haidary from the Oklahoma Department of Agriculture at (405) 522-6193, or email him at hhaidary@oda.state.ok.us. You may also contact Theresa Brophy from the Maryland Department of Agriculture at (410) 841-5880, or email her at rophyt@mda.state.md.us.    

Back to Top