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

May/June 2006 INsight excerpts

Increase Your Overseas Marketing Budget: Apply for MAP Branded
South Africa Floriculture Buyers Mission Participants Project Sales
UAE Food Service Promotion Proves Successful for Suppliers
Upcoming Events
MAP Branded - Prepare to Apply

March/April 2006 INsight excerpts

January/February 2006 INsight excerpts

 

Increase Your Overseas Marketing Budget: Apply for MAP Branded

The chance to double your company's international marketing budget is just around the corner: the 2006-2007 MAP Branded application becomes available June 1. Read on to learn how you can receive reimbursement for up to 50% of your eligible international marketing expenses.

What Is MAP Branded?
The Market Access Program (MAP) Branded is a reimbursement program designed to aid small to medium-sized suppliers of U.S. food and agricultural products in their international marketing efforts. Companies apply to the program on a yearly basis, beginning in June, to receive funding for the upcoming fiscal year, which runs from October 1 to September 30 of the following year.

Who Is Eligible for the Program?
If your company is defined as a small business according to Small Business Administration (SBA) guidelines, has at least $100,000 in total gross sales per year, and if your products are at least 50% U.S. agricultural origin by weight, you qualify for the Branded program. Farm cooperatives, regardless of size, may also apply to the Branded program. SUSTA's Branded program is available to suppliers of a variety of products, such as fruits and vegetables, seafood, snack foods, condiments and more. Products promoted using Branded funds should be marketed under a brand name and labeled as a "Product of the USA" or "Made in the USA." More details about company and product eligibility can be found at www.susta.org/services/map.html.

What Expenses Are Reimbursable?
Branded participants may request reimbursement for a number of international marketing activities, such as advertising (print, TV or radio), label translation and printing, printed point of sale materials, small gift items, and costs associated with exhibiting at international trade shows (registration, travel for two employees, hiring translators, product shipping costs) and in-store demonstrations.

How Much Reimbursement Can a Company Receive?
Companies apply for at least $5,000 total per fiscal year, with a minimum request of $1,000 per country. Participants can receive reimbursement for marketing activities in multiple countries within the same fiscal year. First-time applicants with no export experience may request up to $25,000; those with export experience may apply for up to a $50,000 allocation. If a company is a returning Branded participant, they may request up to $250,000.

What Are the Participation Costs?
Applicants pay a nonrefundable $200 application fee, as well as a 6% administration fee based on the total allocation received.

When Should I Apply?
Because of additional funding received for the current fiscal year, SUSTA is currently accepting applications for 2005-2006. Funding for this fiscal year may be used between your approval date and the end of the fiscal year, which is September 30. Starting June 1, SUSTA will accept applications for 2006-2007 funding, which may be used between October 1, 2006 and September 30, 2007. To ensure an approval date of October 1, and for the best chance of receiving your full funding request, submit your application by the priority deadline of July 28. Funds are allocated on a first-come, first-served basis.

How Do I Apply?
We want to ensure that each company's request for funding is processed in the most efficient manner possible. Ongoing improvements to our online system have caused a change from our normal online application process this year. For fiscal year 2006, SUSTA will not use the online application system used for 2004 and 2005. This year a Word document will be available online for companies to download and complete beginning June 1. Returning applicants will receive a copy of this application via email, along with a copy of their application from the previous fiscal year.

Companies must submit a Pre-Qualification Worksheet and Application Summary, along with a Country Marketing Plan for each country in which they plan to request reimbursement. If the applicant does not own the brand(s) they are promoting, they must submit a Brand Owner Permission and/or Private Label Agreement as well.

For more information about the Branded program and application process, consult the MAP Branded Participant Manual, available online at www.susta.org/downloads/branded_manual.pdf. You may also call the SUSTA office at (504) 568-5986.

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South Africa Floriculture Buyers Mission Participants Project Sales

Under SUSTA's umbrella, the Florida Department of Agriculture hosted six South African plant buyers in a reverse trade mission in January 2006. The companies traveled to Ft. Lauderdale, Florida to meet with U.S. companies from around the SUSTA region. Mission participants met with key Florida orchid producers, landscapers, nurseries, botanical gardens and other industry representatives. For more exposure to the wide variety of quality plant material available, the South Africans also attended the Tropical Plant and International Expo (TPIE) sponsored by the Florida Nursery Growers and Landscape Association (FNGLA).

During their visit to Florida, the South African buyers were able to learn more about Florida's impressive plant and orchid industry. Visiting nurseries and botanical gardens proved to be quite rewarding for the participants as they were able to view plants, orchids and landscape materials firsthand. The U.S. companies used the opportunity to showcase the different techniques that are used in Florida's horticultural industry and to educate the buyers on landscape materials and new research in the Florida region that was unfamiliar to the South Africans.

One of the most important goals of business networking was achieved by attending the show. The direct interaction enabled participants to build relationships with U.S. companies by strengthening existing relationships, while identifying new ones. A strong foundation was laid for further promotions and participants projected sales at an estimated $290,000 as a direct result of the meetings.

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UAE Food Service Promotion Proves Successful for Suppliers

Eight companies from the SUSTA region traveled to Dubai, United Arab Emirates in February of this year to find success at the Gulfood show. The Georgia Department of Agriculture organized the SUSTA booth, along with booths for eight SUSTA activity participants. The U.S. companies promoted various food products, including fruit juices, rice, a variety of processed meat products including turkey, popcorn and other snack foods.

Importers and buyers visiting the booth were given the opportunity to meet with U.S. companies, find out more about southern food products, and even taste products prepared by a chef in the booth. Importers and buyers also expressed interest in making additional contacts with suppliers of nuts, dairy products, honey, confectionery, spices, oils, fresh vegetables, fresh fruits and sauces.

The United Arab Emirates (UAE) is considered the trade center of the Arabian Peninsula/Gulf region. A marked increase in tourism and the construction of hotels and restaurants in the UAE is fueling the demand for high value imported food products. This demand was clearly shown in the results from the show; five companies participating with SUSTA reported immediate sales totaling $964,000. Others indicated that they expected orders within the year, projecting sales to reach approximately $8,370,000.

Gulfood is a large annual international food, catering and hotel equipment trade fair. It is the leading and fastest growing food exhibition in the Middle East. Gulfood hosts over 1,800 participants from 60 countries and approximately 30,000 trade visitors.

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Upcoming Events

Southern Originals Pavilion at Food & Hotel China
Beijing, China
June 7-9, 2006

China's leading international food and hospitality industry exhibition is Food & Hotel China (www.fhcbeijing.com.cn). This trade-only show offers exhibitors a chance to display products to decision makers in the growing food and beverage market of north China. Over the next 5 years, Beijing's food and drink market is anticipated to grow by $460 billion to become the world's 2nd largest food retail market. Suppliers of food and beverage products are invited to exhibit in the Southern Originals pavilion at FHC Beijing to begin establishing a presence in China in time for the 2008 Beijing Summer Olympics. The $3,500 participation fee gives companies 100 square feet of fully furnished booth space, access to a central lounge with a hostess to distribute product samples, booth customization with company logo, a pre-trade show workshop, on-site interpreters, and assistance with buyer meetings and follow-up. The fee also includes shipment of up to 300 lbs. of product samples and literature to China. Visit www.susta.org/eventdetails.html#fhc for more information. To register, contact Victoria Mejia (vmejia@neo.rr.com) at (330) 622-7722.

SUSTA Pavilion at Exphotel
Cancún, Mexico June 14-16, 2006

Tourism represented 7.7 percent of Mexico's national GDP last year, amounting to $54 billion. With 221,000 established restaurants reporting sales of $14 billion in 2004, the country's growing hospitality industry has great potential for U.S. exports. Exphotel (www.exphotel.com/xindex.html) is an important international exposition for Mexico's hospitality industry. Of more than 6,000 qualified visitors in 2005, over 50% were decision makers from the hotel, restaurant, bar and discotheque industries. Participants in the SUSTA pavilion at Exphotel will receive exhibitor space in half of a booth, one-on-one appointments with buyers, signage with company logo, translators, chef demonstrations, and free product shipping from the consolidation point to the show. Best prospects include beef, pork, turkey, chicken, dairy products, nuts, sunflower seeds, wheat flour, baked goods, ingredients, concentrates and more. For more information, visit www.susta.org/eventdetails.html#exphotel. To register for this event, contact Terry Ovalle (terry.ovalle@agr.state.tx.us) or Erica Skrine (eskrine@agr.state.ga.us).

Auchan Seafood Promotion
Northern France
July 4-14, 2006

France is a net importer and major consumer of seafood products in Europe. Auchan Hyper & Supermarkets is one of France's top five leading retail stores, reporting sales of 18 billion Euros in 2004. In cooperation with the USDA Agricultural Trade Office in Paris, SUSTA will collaborate with Food Export USA-Northeast and the Alaska Seafood Marketing Institute to organize a one-week U.S. fresh/frozen seafood in-store promotion in 117 Auchan stores in northern France. The event will educate French consumers about U.S. seafood and methods of preparation, with the hope of increased sales of fresh and frozen seafood and complementary products. This promotion will build on relationships already developed with Auchan to include a wider range of products, including new products from the southern U.S. To learn more, visit www.susta.org/eventdetails.html#frenchpromo, or contact Bernadette Wiltz at (504) 568-5986 or by email at (bernadette@susta.org).

Buyers Meeting & Culinary Workshop
Amsterdam, The Netherlands
September 18, 2006

With more than 16.3 million consumers and a $12 billion per year foodservice market, The Netherlands presents an attractive opportunity for exporters. Southern U.S. suppliers interested in this market, or those already exporting products there, are invited to contribute information about their product line to Dutch foodservice and retail buyers. The buyers will review the information, and selected companies will be invited to attend a buyers meeting and culinary workshop at the U.S. Ambassador's residence in Holland. Suppliers that are selected by the buyers may attend the meetings for no participation fee, and SUSTA will pay for shipment of product samples. Best prospects for this promotion include seafood, wine and spirits, fruits and vegetables, sauces, condiments, pecans, Tex-Mex and other ethnic cuisine, and other specialty or value-added foods. Companies should send product information by June 17, 2006. For more information, contact Victoria Mejia at (330) 622-7722 or by email at vmejia@neo.rr.com.

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MAP Branded - Prepare to Apply

Gathering the following information before you begin work on your MAP Branded application can make the process go more smoothly:
Dun & Bradstreet Number - Obtain your company number and report at www.dnb.com.
North American Industrial Classification System (NAICS) Codes - Obtain the code that identifies your industry. These codes are used to determine whether your company meets Small Business Administration (SBA) definitions. Find NAICS codes at: www.census.gov/epcd/naics02/naicod02.htm
https://eweb1.sba.gov/naics/dsp_naicssearch2.cfm
Harmonized System (HS)/Schedule B Codes - Ask your shipping department for these 10-digit codes that identify every item that is exported, or determine your HS codes at: www.census.gov/foreign-trade/schedules/b/
Brand Names/Products - Provide a list of the brand names and products to be promoted using MAP Branded funds.
Marketing Plan for 2006-2007 - You will need to include the following information in your application:
1) Your overall international marketing budget
2) Total amount of Branded funds requested
3) Budget per country (Amount of money you plan to spend in each country listed in the application)
4) Marketing plans for each country (Including detailed information for each promotional activity, such as trade show names and dates, in-store demonstration dates, etc.)
5) Review the SUSTA MAP Branded Guidelines and Checklists for each type of activity you plan to conduct: www.susta.org/services/map_checklists.html.
6) Sales figures (for each country) for 2004 and 2005
7) Projected sales (for each country) for 2006 and 2007
8) Gross export sales (total and per country) for 2004 and 2005
9) Projected gross export sales (total and per country) for 2006 and 2007

Contact SUSTA's Branded department at (504) 568-5986 with any questions.

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