Press Room

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

November/December 2003 INsight excerpts

Financing for Export Credit Sales
Exporters: Save Money and Time
Director's Corner
Upcoming Events
Generic Activity Success: Resource Point Grows Globally with SUSTA's Help
SUSTA's Emerging Markets Program
Indo-American Chamber of Commerce's AmFest in Mumbai, India
Your Export Questions Answered -- Exporter's Workshop

September/October 2003 INsight excerpts

Financing for Export Credit Sales

For the last 20 years, the USDA (United States Department of Agriculture) provided U.S. exporters with guarantees on notes generated by their credit sales to foreign importers. These programs allowed exporters to increase credit sales to countries, where such sales might not be possible without the added security of the guarantees. While the original USDA programs offered long-term coverage and required foreign bank Letters of Credit as security, changes in the international trade market mandated a new type of guarantee based on shorter credit terms and without the Letter of Credit requirement.

Included among these changes in the market were a significant increase in the sale of high-value and consumer-oriented products, which are generally shipped in smaller quantities and more frequently than bulk products, and a decrease in sales of bulk products. Also, there was a large shift in foreign import markets from state trading monopolies to smaller, private sector buyers of lower credit quality with a wide range of financing needs and the inability to provide Letters of Credit. Additionally, the increased use of shipping containers allowed importers to ship smaller amounts more frequently to better match sales and distribution patterns.

The USDA met these new market demands with the Supplier Credit Guarantee Program (SCGP), which provides guarantees to exporters of U.S. commodities to developing countries on credit terms of up to 180 days. By offering the exporter a 65% guarantee of his credit sales price and requiring only a promissory note from the importer without any Letter of Credit, the program allowed U.S. suppliers to accommodate the needs of their smaller buyers to whom an increasing amount of sales were directed. The 35% risk maintained by the exporter allowed the USDA to approve guarantee applications quickly and without any importer underwriting as they could rely upon exporters to do all the necessary due diligence. However, many exporters, while desiring to provide the most beneficial credit terms to their buyers, still could not afford the delay in payment for their sales for the entire duration of the credit term. Other exporters simply wanted additional liquidity sooner.

Greystone has begun providing financing for exactly these circumstances. By utilizing the USDA guarantee as security for Greystone, exporters can now receive immediate financing against the importer note held by the exporter rather than waiting until the end of the credit period to receive cash.

Greystone is an investment bank headquartered in New York with offices in California, Florida, Georgia, Maryland, South Carolina, Tennessee and Virginia. As a USDA approved lender with a $6 billion loan portfolio, Greystone is not only one of the largest government agency lenders, but has developed its reputation as a problem solving and creative funding source.

If you are an exporter of U.S. commodities interested in learning more about our export financing programs or the Supplier Credit Guarantee Program, please contact Greystone, or visit our website as listed below.

-Mordecai Rosenberg
(212) 649-9700
mrosenberg@greyco.com
www.greyco.com

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Exporters: Save Money and Time

Learn how SUSTA can help your company save money and time while exporting. Attend a one-day SUSTA Exporter's Workshop in your state to learn more about SUSTA's services for exporting companies.

At the workshop, companies will learn to effectively use SUSTA funding for international marketing exposure, find out how to sign up for one-on-one meetings with foreign buyers, and hear about free resources available to new exporters.

Workshops will take place in each of the southern states:

Alabama - February 3-4, 2004
Arkansas - March 10-11, 2004
Florida - April 5-6, 2004
Georgia - February 10-11, 2004
Kentucky - April 14-16, 2004
Louisiana - March 16-17, 2004
Maryland - February 17-18, 2004
Mississippi - April 19-20, 2004
North Carolina - January 16-17, 2004
Oklahoma - May 11-12, 2004
Puerto Rico - To be announced
South Carolina - February 24-25, 2004
Tennessee - March 9-11, 2004
Texas - April 20-21, 2004
Virginia - To be announced
West Virginia - To be announced

To attend a workshop, contact your state's Department of Agriculture. Contact information is listed on SUSTA's website by state at www.susta.org/about/membership.html.

For details about SUSTA's programs, please visit our newly redesigned website at www.susta.org.

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Director's Corner

Trade shows, workshops, success stories: there is a lot in this issue of INsight. To make sure your company receives important information about upcoming events, visiting buyers and trade leads, sign up for our Email Updates. Updates are sent every two weeks. Through email communication we can ensure that companies receive important news about exporting that may not be communicated in our newsletter. Visit www.susta.org to sign up for the newsletter. While you are there, be sure to check out our new look and our helpful resources.

The most important part of any sale is getting paid! This issue contains an informative article about an export credit programs available to companies exporting USA food and agriculture products.

Also in this issue, there is information about a number of activities taking place within the near future. The "Americas Food & Beverage Show" takes place in the Miami Beach Convention Center on December 3-4, 2003. SUSTA, in conjunction with the other State Regional Trade Groups (SRTGs), is also conducting a half-day Exporter's Workshop prior to the show on Tuesday, December 2, 2003 at 9:30 a.m. The workshop is free and open to all. This show is focused towards buyers from the Caribbean, Central and South America, and provides an excellent smaller venue for companies to participate in a USDA-endorsed international show within the USA.

Additionally, this issue of INsight includes information concerning AmFest, a four-day long consumer products exposition/trade fair for U.S.-based small and medium enterprises held in Bombay (Mumbai), India.

This issue's Generic Success Story shows how a SUSTA export trading company uses SUSTA's programs to successfully consolidate and ship U.S. food products to India. SUSTA's involvement in India is part of a multi-year program begun last year with our India Foodservice Workshop in Orlando, FL. This workshop was part of the Emerging Markets Office project that SUSTA, the Florida Department of Agriculture & Consumer Services, the Mississippi Department of Agriculture & Commerce and the Alabama International Trade Center of the University of Alabama are conducting on the foodservice industries in India.

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Upcoming Events

SUSTA Pavilion - IPM Trade Show
Essen, Germany
January 27-February 5, 2004

This is the tenth year SUSTA is involved in the IPM Trade Show (www.ipm-messe.de). IPM is the world's largest horticultural trade show for the nursery trade in Europe. This year, SUSTA will team up with our sister organizations, WUSATA and Food Export USA-Northeast, to expand the scope of products represented by SUSTA at the show and expose international buyers to a wider range of products.

SUSTA will have a pavilion at the IPM trade show, where up to 15 U.S. companies will display products. The cost to exhibit in the pavilion is $450 per company. There are also a limited number of larger booths available within the pavilion, where companies can exhibit for $850. Participation fees cover the cost of booth space, translators and other related trade show expenses. Growers, who wish to attend the show without exhibiting, may purchase passes and a show directory for $150.

Participation for the IPM show is open to all U.S. nursery producers. Participants are also invited to participate in industry-related tours. The tours will educate U.S. growers about European products and growing processes and building relationships for long-term trade.

Applications are due to Jane Storrs by December 1, 2003. Download the application at www.susta.org/events_2005.html#ipmsna.

U.K. In-Store Promotion
United Kingdom
January 2004

The United Kingdom In-Store Promotion is a vehicle through which U.S. producers of value-added, ethnic and regional foods will have an opportunity to sell products to British retail stores and supermarkets. A retail chain in the U.K. will promote southern region specialty food products over a three-month period.

The in-store promotion is a follow-up to last year's reverse trade mission to the U.K. Buyers and importers visited the SUSTA region for a table-top event and one-on-one meetings in two different locations. This year, U.K. contractors will host a food showcase to highlight U.S. products to retailers in London. The in-store promotion will feature flyers, recipes and live demonstrations on preparing SUSTA food products.

For more information, contact Theresa Brophy at brophyt@mda.state.md.us or Ms. Susan Giannasi at sgiannasi@vdacs.state.va.us.

Trade Mission to World Food Moscow Trade Show
Russia
February 2004

"The Taste of the Southern United States" is a Russian promotion with two major components. It includes the major trade exhibition World Food Moscow 2004 (www.world-food.ru) and SUSTA-sponsored one-on-one meetings with pre-screened Russian buyers. Endorsed by USDA's Foreign Agricultural Service, this trade show attracts nearly 50,000 importers, wholesalers, retailers and processors from all parts of Russia and neighboring countries. Each southern company will have an individual booth near SUSTA's pavilion at the World Food Moscow Trade Show. Food Show PLUS! activities include public relations support prior to trade shows, a pre-analysis of products for the market, in-market support for exhibitors to increase preparedness, tours of markets and ports of entry, and help qualifying leads received at a trade show. SUSTA will distribute a Russian-language directory of export-ready companies from the southern U.S.

Contact Theresa Brophy at brophyt@mda.state.md.us or Charles Green at charles.green@ncmail.net for more information.

Pet Food Buyers Mission to Annual Pet Products Trade Show
New Orleans, LA
March 17-19, 2004

SUSTA, together with its sister organizations MIATCO and Food Export USA Northeast, will host a buyers mission to APPMA's Annual Pet Products trade show in New Orleans on March 17-19, 2004 (www.appma.org/trade_show/trade_show_overview.asp). Meetings between U.S. suppliers and buyers from around the world will be held at the show. SUSTA will host a reception in conjunction with the show to establish relationships with pet food buyers and increase awareness for SUSTA-region products to the pet food market worldwide.

Contact Ms. Nishi Whiteley at nishi.whiteley@agr.state.tx.us.

Hong Kong Food Service Promotion
Hong Kong, China
March 2004

The Hong Kong Food Service Promotion includes a series of seminars to introduce southern food products to buyers in Hong Kong. The first seminar will cater to importers and distributors of local and international restaurant chains located in Hong Kong. The second seminar is designed for chefs and pastry chefs. The seminars will be coordinated and hosted at a hotel/restaurant by a SUSTA chef, who will demonstrate the versatility and adaptability of U.S. products. U.S. suppliers are invited to send product samples for use in the demonstrations. As a follow-up to the seminars, a Hong Kong importer or chef will visit the SUSTA region to see how U.S. food products are used.

For additional information about participating in this promotion by providing product samples, contact Barbara Charlet at barbara@oda.state.ok.us, or contact Mr. Charles Green at charles.green@ncmail.net.

Korean Trade Show Pavilions & Trade Mission
Korea
March-May 2004

"The Taste of Southern United States - Korea" is in its second phase. This year SUSTA will have a presence at two trade shows, where we will promote southern U.S. products from a pavilion: Food & Hotel Korea 2004 (www.fhko.com) and Seoul Food 2004 (www.seoulfood.or.kr).

The focus of this promotion is to increase awareness for U.S. processed foods. U.S. companies may exhibit at the shows in the SUSTA pavilion. SUSTA representatives will distribute information about participating companies and a Korean-language directory of export-ready companies. In addition, SUSTA and Korea's Agricultural Trade Office will provide educational sessions, marketing support and trade-related activities for SUSTA participants. U.S. companies will also have one-on-one meetings with Korean buyers.

For more information, contact Theresa Brophy at brophyt@mda.state.md.us.

Sweet Onion Promotion
Belgium, Netherlands, Germany, United Kingdom
April 2004

In coordination with the Georgia Vidalia Onion Festival in April 2004, SUSTA will host a reverse trade mission to Georgia and Texas, two states that produce much of the sweet onions in the southern U.S. Foreign importers and buyers from supermarket chains will visit the planting facilities and learn how sweet onion products are stored. The buyers will visit the Georgia Vidalia Onion Festival and State Farmers Market. In addition, buyers will visit companies in Texas for a showcase of sweet onion value-added products.

For more information, please contact Ms. Corry de Wit by email at georgiausagcdewit@arcadis.be.

SUSTA Pavilion at European Seafood Exposition
Brussels, Belgium
April-May 2004

SUSTA will promote regional seafood and aquaculture products at the European Seafood Exposition in Brussels, Belgium from May 4-6, 2004. SUSTA will provide value-added services, such as an enhanced pavilion design, trade meetings, product display, advertisement, and direct mailings to a list of seafood buyers. A SUSTA chef will prepare southern seafood cuisine, emphasizing new, sustainable products from the SUSTA region.

The European Seafood Exposition is a trade show consisting of representatives of more than 100 countries and over 18,000 seafood buyers.

To participate, contact Dot Williamson at williad@doacs.state.fl.us or Shirley Estes at sestes@vaseafood.org.

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Resource Point Grows Globally with SUSTA's Help

Founder of Resource Point Jyoti Mujumdar began exploring opportunities to conduct exports of U.S. agricultural products to India over a year ago by participating in a reverse trade mission. The trade mission was conducted as part of SUSTA's Emerging Markets Program [see information to the right]. Now the one-year-old Jacksonville, Florida based company, is participating in an upcoming SUSTA in-store promotion in India that features U.S. agricultural goods. Successful promotion participants will export and sell products to Nilgiris, one of India's most progressive grocery store chains.

Resource Point is a professionally managed company with a customer base that spans all over the world through its offices located in U.S. and India. The office presence in the Asia-Pacific region provides a strong base in practicing the principle of "Thinking Globally and Acting Locally" as a successful business strategy. Visit the company's website at www.resource-point.com.

Resource Point had the vision to identify India as being one of the fastest growing economies in the world, representing a major opportunity for U.S. exporters of value added food products. The USDA's Agricultural Trade Office (ATO) in India co-sponsored the in-store promotion with SUSTA. Resource Point hopes their efforts allow them to obtain follow-up orders from Nilgiris. An array of products including snack items, nuts and fruit, pet food and other items were included in the Resource Point shipments to Nilgiris.

Ms. Mujumdar had a very positive impression of SUSTA as a result of her company's involvement in various India promotions as well as the MAP Branded program and Generic industry activities. "I am very pleased with SUSTA initiatives in emerging markets like India. We successfully shipped our container to Nilgiris, and we hope that this is the beginning of a long-term relationship with them."

Resource Point's wise use of SUSTA's programs is evident. Ms. Mujumdar confirmed their strategy of using multiple SUSTA programs, "we put aside some funding specifically for them [Nilgiris] in our MAP program [application]. Our goal is to develop some business with other importing companies, whom I had met last year as part of reverse trade mission organized by SUSTA."

See how SUSTA's programs can help your company at www.susta.org.

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SUSTA's Emerging Markets Program

The Emerging Markets Program (EMP) funds activities to promote exports of U.S. agricultural commodities and products to emerging markets.

An emerging market is any country that is taking steps toward a market-oriented economy through its food, agriculture, or rural business sectors and has the potential to provide a viable and significant market for U.S. agricultural commodities or products.

There is no fixed list of emerging market countries. To be considered an emerging market, a country must have:

1) Per capita income of less than $9,205 - The current ceiling on upper middle-income economies as determined by the World Bank.
2) Population greater than 1 million - This may encompass regional groupings, such as the islands of the Caribbean Basin.

The purpose of the program is to assist U.S. public and private organizations to improve market access by developing, maintaining, or enhancing U.S. exports to low- and middle-income countries that have or are developing market-oriented economies, and can be viable markets. The underlying premise is that emerging agricultural markets benefit from U.S. governmental assistance before the private sector develops these markets through trade activities. All agricultural commodities except tobacco are eligible.

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Indo-American Chamber of Commerce's AmFest in Mumbai, India

India, home to over one billion people, is a fast growing, thriving nation. According to a recent World Bank report, the sustained upswing in the Indian economy in 2003 has been instrumental in fueling a surge in South Asian regional growth. The prospects for the year 2004 are bright, and it is expected that Indian economic progress will continue on its upward trajectory.

Mumbai is a bustling metropolis and India's commercial capital. Over 10 million people reside in this multi-cultural, multi-ethnic, vibrant city. Mumbai is home to several of India's most accomplished citizens in diverse areas including business and the arts. India's burgeoning middle class, highly accentuated in Mumbai, has exhibited high propensity to consume a wide array of goods and services and several large global brands have met with tremendous success in this market.

It is against this backdrop that the Indo American Chamber of Commerce [IACC] will host AmFest, a three day-long consumer products exposition for U.S.-based small and medium enterprises [SMEs]. IACC is optimistic that the event will create productive commercial ties between the U.S. and India.

IACC believes that this is an ideal time for American companies to tap into the growing Indian market. Make direct contact with Indian trade and end consumers, and ascertain their response to your products. Exhibting at AmFest will also help you seal distribution and marketing alliances.

For this exposition, IACC will focus on the fast moving consumer goods segment, including food & beverage products. The format of the event is:
- Trade show and expo for display of American products and services
- Seminar focused on 'Doing Business in India,' featuring basic rules for business in India, tax structures, the Indian demographic profile, etc.
- One-on-one buyer-seller meetings
- Cultural festival

Contact Shabina Patel at the Indo-American Chamber at shabina@indous.org or at +91-9821214061.

The Indo-American Chamber of Commerce was established 35 years ago to promote trade and commerce between India and the USA. With over 2,700 members and 14 offices in India, it facilitates foreign investment into India and assists U.S. companies to identify joint venture partners.

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Generic Activity Success: Foodservice Buyer Meets New Orleans Suppliers

As part of its Emerging Markets Program, SUSTA continues to build relationships with international distributors in the Central America and Andean regions for foodservice sales. One buyer from Guatemala, who was unable to attend SUSTA's Bridges reverse mission in March 2003, recently made a trip to New Orleans September 2 & 3 to meet with prospective suppliers.

"I met six companies in two days, and everything went smooth," said Mr. Jorge Mansilla, Director of Alimentos Importados Superiores, S.A. (AISSA) of Guatemala. Meetings included local suppliers and companies from Tennessee and Florida. Mr. Mansilla was looking for suppliers of dairy products, pizza toppings, and pie fillings.

While AISSA is based in Guatemala City, it distributes products throughout Central America, and handles imports for Domino's Pizza in Guatemala. Its main product line includes pizza toppings, dairy products, condiments, and processed vegetables.

SUSTA's Marketing Director Shana Bercuson found that Mr. Mansilla was eager to learn about the MAP Branded program, SUSTA's online trade leads and company directory, and other SUSTA projects for importers of southern foods. For more information about SUSTA's programs, please visit our website at www.susta.org, or contact susta@susta.org.

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Your Export Questions Answered -- Exporter's Workshop

Find out how to develop and expand into new markets. Learn about the opportunities and challenges that overseas markets present. Discover the variety of export assistance agencies and programs that can help you export.

In this interactive workshop, you will have the opportunity to ask any questions regarding the exporting industry to our experienced panel members:

-Alabama International Trade Center
-Caribbean Agricultural Trade Office
-Experienced, successful exporters
-USDA Hispanic-Serving Institution National Program
-SUSTA

The topics listed below will serve as a general outline for the event. During each segment, attendees may ask questions related to each topic. Our panel of experts will answer your questions pertaining to export topics.

Free and open to all exporters of U.S. food or agricultural products.

09:30--Brief SUSTA presentation
10:00--Export Readiness
10:20--Export Services
10:40--Pricing & Quoting
11:00--Shipping & Documentation
11:20--Finding the Right Buyers

December 2, 2003
9:30 a.m. - 11:30 a.m.
Miami Beach Convention Center

Contact shana@susta.org to attend.

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