The 2005 Atlantic hurricane season has been the most active on record and has presented great challenges to agricultural producers throughout the southern U.S. The season produced 23 named storms, including three major hurricanes affecting the Gulf Coast region. Katrina, Rita and Wilma affected suppliers of seafood, row crops, forestry products, and all types of agriculture in the SUSTA region.

Louisiana was one of the states most affected by hurricanes Katrina and Rita. According to the Louisiana Department of Agriculture and Forestry, the agriculture and forestry industries are expected to take at least a $472 million hit in 2005. The forestry industry is estimated to lose the most, $226 million, followed by sugarcane, seafood, and cotton. All crops, from rice to cattle to fruits and vegetables, have been affected by damage from high winds and flooding. Once costs from damaged machinery and structures, processing, packing and storage facilities, and high fuel prices are accounted for, Commissioner Bob Odom estimated, "We're now looking, at minimum, at a $1.4 billion agriculture disaster." (September 30, 2005 LDAF Press Release)

The facilities of Crystal International, a New Orleans-based hot sauce producer, were flooded with 7 feet of water following Katrina, crippling production. "The plant is totally incapacitated," says Marwan Kabbani of Crystal. Crystal is working from temporary offices and looking for new long-term facilities. "We expect anywhere from 60 days to 4 months before we can be operational," says Kabbani. "It takes a lot of effort to get out of this hole - a lot of effort."

Mississippi's agriculture industry was also hit hard by Katrina and Rita. The Mississippi Department of Agriculture and Commerce estimates crop damage, production loss and recovery costs at over $2.2 billion. Timber losses alone are anticipated to be $1.3 billion. In the southern part of the state, poultry, dairy, beef, and nurseries were affected, and catfish industry losses are estimated at $102 million. The agriculture industry's losses may affect as many as 25% of all jobs in the state.

Following Katrina, Alabama suffered from widespread power outages, where grocery stores and warehouses had to dispose of spoiled food after the storm. Some crops were devastated, such as satsumas and seafood. Others were minimally affected, including poultry and corn. From Rita, Texas received damage to rice, soybeans, produce and nursery crops.

Preliminary estimates provided to the Florida Department of Agriculture's Bureau of Seafood and Aquaculture after hurricane Wilma placed seafood inventory losses in Dade and Monroe counties around $25 million, plus the cost of lost traps and damage to facilities. The Florida Keys lost crab and lobster traps during Katrina and Rita as well. The extent of damage to the tropical fish and aquaculture industries, as well as boats, facilities and retail outlets, has yet to be determined.

In addition to the commodities affected by the storm, transportation issues have also led to lower selling prices for crops and lost opportunities for trade in the agricultural industry. The New Orleans ports normally handle about half of the crops exported from the United States, including corn, wheat and soybeans. Closure of the ports following Katrina led to reductions in the prices farmers get for crops. Loss of containers due to the storm and storage issues increased the economic damage felt by suppliers nationwide. The ports have now re-opened and are working to return to pre-storm operational capacity.

Fuel prices rose dramatically after hurricanes slowed or completely stopped oil production in the Gulf, posing another obstacle for agricultural producers. Mississippi's row crops, such as cotton, rice, corn and soybeans, received wind damage from Katrina, compounded by wind and rain during Rita weeks later. Those that did not receive total damage were more expensive to harvest, because producers must slow down equipment, using more fuel. With fuel costs 60% higher than a year ago, 2005 marks the state's highest production cost year ever.

We can only begin to measure the impact of these storms on the economy of the Gulf region and the entire U.S. SUSTA maintains its commitment to providing services and programs to exporters as they work to rebuild their businesses and lives. Worldwide demand for southern U.S. products will encourage exports in years to come.

SUSTA's efforts are working for you! Over the past few years, we have developed five multi-year promotions in various regions of the world for the benefit of southern U.S. suppliers. Read on to find out how to benefit from our year-round product showcases.

Initiatives are underway in Canada, Central America, China, the European Union, and India to build consumer knowledge, identify sales opportunities, and match buyers and sellers around the globe. Initiatives differ from other Generic industry promotions by providing a cohesive marketing plan for multiple activities for multiple years and utilizing the resources of in-country marketing consultants.

U.S. suppliers can participate in SUSTA initiatives in a variety of ways. Since initiatives are ongoing, participants have many opportunities to introduce products around the globe. Your company can test the waters in a market at a low cost by sending product samples to our in-store promotions, tradeshows, menu promotions, etc. SUSTA will showcase the products and provide suppliers with feedback.

If your company is ready to meet distributors and would like to exhibit at a tradeshow or participate in a seminar, there are opportunities outlined below. SUSTA assists with logistics, registration, matchmaking, etc., and allows suppliers to participate at a reduced rate. Companies can also meet foreign buyers in the U.S. SUSTA offers reverse trade missions where buyers and suppliers meet at central locations in the southern U.S.

Canada
In Canada, Go South! is beginning its seventh year of educating buyers and motivating consumers to purchase foods from the southern U.S. During its first five years the program focused on promoting fresh fruits and vegetables in Ontario. Last year, the program successfully expanded both geographically, to Quebec, and in product scope, to include seafood.

Go South! will promote produce and seafood by developing relationships with key trade and media contacts, market research, in-store advertising, recipe development and publication, news releases, and two events:

• Taste US! Culinary Festival/FAS U.S. Culinary Fair (June 2006)
• Seafood Foodservice Promotion (Summer 2006)

Go South! will also continue to promote U.S. fruits, vegetables and seafood through www.gosouthfresh.com.

Central America
The Central America Foodservice Initiative is focused on developing buyer-seller relationships and implementing a brand awareness program to promote exports from the southern U.S. to Central America, primarily Costa Rica and El Salvador. The initiative is in its second year of promotions.

Three activities are planned for the upcoming year with the goals of creating dialogue with key buyers to determine opportunities and matching U.S. products with buyers.

Two activities will occur in Central America:

• EXPHORE Trade Show - Costa Rica (September 2006)
• Trade Mission - Costa Rica and El Salvador (Summer 2006)

The other activity will occur in the U.S. As a follow-up with contacts made during last year's promotions, in spring 2006 a Central American media team will travel to the southern U.S. to report on its rich culinary culture.

China
The China Initiative is in its first year. As with the other initiatives, SUSTA will work with an in-market representative to coordinate activities promoting U.S. products in China.

The areas of focus will be Shanghai, Beijing, and Guangzhou. In these regions, the in-market representative will offer market development services for suppliers. The representative will provide market research, product viability assessment, and other market entry assistance. More detailed information about services available through SUSTA's China representative is posted online at www.susta.org/services/gip_initiatives.html.

European Union
The E.U. Regional Foods Initiative has promoted southern foods and cuisine to the European Union since July 2004. This year, the program will focus on the U.K., Sweden and the Netherlands, markets identified to have potential for southern U.S. exports. Eight promotions will occur in the European Union, including in-store promotions, buyer seminars, menu promotions, and the launch of SUSTA's new Southern Originals tradeshow pavilion.

By attending a trade show with SUSTA and exhibiting in our Southern Originals tradeshow pavilion, exhibitors will benefit from an eye-catching booth and a variety of support services. The package includes pre-show activities, strategic support, hotel reservation and travel advice, product sample shipping, assistance during the show, matchmaking, debriefing, and post-show follow-up.

The pavilion will showcase products at the following tradeshows:

• Horecava - Amsterdam (January 9-12, 2006)
• Food & Drink Expo - United Kingdom (March 19-22, 2005)
• GastroNord - Sweden (April 24-27, 2006)
• InterCool - Germany (September 24-27, 2006)

Other opportunities include:
The Netherlands -Menu promotions in The Hague and Amsterdam (March - May 2006); Retail promotions in De Bijenkorf (March - May 2006); Oil & Vinegar retail promotion (Spring 2006)
United Kingdom - Buyer seminars with chef-led workshops (April 2006)
Sweden - Retail promotion in ICA grocery stores (July/August 2006)

To participate in activities tied to initiatives in Canada, Central America, China or the European Union, contact Nicole Schauer (nicole@susta.org). Companies interested in India should contact Ms. Bernadette Wiltz (bernadette@susta.org). More information about Generic initiatives is available at www.susta.org/services/gip_initiatives.html. To get involved, contact your state Department of Agriculture. Information for state international marketing representatives is at www.susta.org/staff/index.html.

During the past few months SUSTA has been functioning under a different and demanding environment due to the effects of two hurricanes that impacted New Orleans. Both Katrina and Rita had severe professional and personal effects upon the SUSTA staff. We evacuated our offices and many of our homes were damaged or destroyed. We thank you for expressing concern about our safety and well-being.

Fortunately, we were able to continue operations in a limited mode until we retrieved our in-house computer server and transferred it to Baton Rouge, where our main server is located. This setup was initiated for reasons such as natural disasters, and our pre-planning was validated.

Our staff continues to work at a high level of efficiency. To the surprise and delight of the Foreign Agricultural Service (the source of SUSTA's funds), MAP Branded applications were efficiently reviewed and funded despite our situation. Generic promotions and EMO projects continued with no delays or cancellations. Such positive outcomes resulted from cooperation from our companies, state marketing representatives, FAS and the SUSTA staff. Without such dedication and teamwork, none of it would have been possible.

We are now operating in a temporary office in the metro New Orleans area. Office hours are 8:00 to 4:00 Monday through Friday, and at least one staff member in each department (i.e. Branded, Generic, Marketing, Administration) is always available in the office. We are using a wireless network for our computer access, and mobile phones for our communications. Due to the current conditions in the New Orleans area, mail is being delivered to the Louisiana Department of Agriculture in Baton Rouge. For up to date address and phone numbers, please visit our new weblog at http://susta.blogspot.com. You can also access the blog via the SUSTA website (www.susta.org) by clicking the appropriate link on the right-hand side of the main page.

We plan to return to our normal office at the World Trade Center in New Orleans in December when the hurricane season is over and adequate services become available. We will announce our return through our website, mailings, Email Update, and telephone calls.

I personally want to express once again appreciation for the support and concern that all y'all have shown for SUSTA and its staff. It is refreshing and encouraging to witness the togetherness that the people from the entire United States and overseas have displayed during these recent adverse times.

IPM China Tradeshow & Mission
Foshan, Shanghai & Beijing, China
November 28-December 8, 2005

The organizers of Internationale Pflanzen Messe (IPM) Essen, the world's largest horticultural fair, invite suppliers to explore the Asian market for plants and nursery products at a new show in the heart of China's horticultural market (www.ipm-messe.de). As Western customs spread throughout the Far East, there is a growing demand for plants and flowers. As the most populous country in the world, China's growing middle class is expected to increase the opportunities for international trade in horticulture. IPM China will take place from December 1-3 in Foshan, in the largest cultivation area in China for flowers and plants. SUSTA invites southern U.S. suppliers to participate in a southern pavilion at IPM China and a trade mission to Shanghai and Beijing following the show. U.S. suppliers of plants, nursery products and horticulture may register now for this cost-effective way to meet Asian buyers. For more information about signing up for this activity, contact Mr. Rob Beets of the Tennessee Department of Agriculture by telephone at (615) 837-5517 or via email at Robert.Beets@state.tn.us.

IFE India Tradeshow & Misssion
New Delhi, India
December 8-10, 2005

IFE India International Food, Drink & Hospitality Exhibition (www.ife-india.com) is the subcontinent's leading international show for food and drink. India presents an attractive market for exporters, with its growing middle class and population over 1 billion. India is the world's sixth largest economy, and the processed food sector is expected to triple from its current level of $20 billion to about $60 billion by 2020. For the second year, SUSTA offers U.S. suppliers the opportunity to build a presence in India through one-on-one meetings with key buyers at the show and by displaying products in the SUSTA booth for a fee of $250. Suppliers who cannot attend the show may send three product brochures to be included in SUSTA's southern U.S. catalogue, which will be displayed in the booth. Best prospects include processed food and drink, specialty food and drink, alcohol and non-alcohol beverages, bakery, confectionery, food and drink ingredients, dairy products, frozen foods, ice cream, and regional foods. Suppliers should contact Bernadette Wiltz at bernadette@susta.org or (504) 258-3318 by November 31.

Horecava Tradeshow
Amsterdam, The Netherlands
January 9-12, 2006

Join us in SUSTA's new Southern Originals tradeshow pavilion at the Horecava show (www.horecava.nl) in Amsterdam. Horecava, which celebrates its 50th anniversary in 2006, is the largest fair for the foodservice and catering trade in the Benelux countries (Belgium, the Netherlands, and Luxembourg). This year the show expects at least 55,000 decision makers from the foodservice industry to attend, including representatives from cafés, bars, restaurants, hotels, institutions and fast food outlets. At Horecava 2005, exhibitors made over 180 business contacts per booth, and nearly 10,000 sales transactions were closed at the show. SUSTA's Southern Originals tradeshow pavilion will offer a turnkey package for participants - eye-catching booths at the show, pre-show activities, hotel reservation and travel advice, sample shipping, assistance during the show, buyer-seller matchmaking, post-show follow-up and more. This activity is part of SUSTA's E.U. Regional Foods Initiative (www.susta.org/services/gip_euregional.html). For more information, contact Generic Coordinator Nicole Schauer at (504) 258-3318 or by email at nicole@susta.org.

IPM Tradeshow & Mission
Essen, Germany
January 30-February 10, 2006

Internationale Pflanzen Messe (IPM) Essen is the largest event of its kind, attracting over 60,000 visitors from the horticulture trade (www.ipm-messe.de). From February 2-5, 2006, more than 1,500 exhibitors from 40 countries will display plants, flowers and industry technology to decision makers from throughout Europe. SUSTA invites U.S. suppliers to exhibit at the IPM show and participate in a subsequent trade mission to Italy to meet European buyers one-on-one. In 2002, the U.S. exported $65 million in horticultural products to E.U. countries. Germany, the show's locale, is the world's third largest market for plants, following the USA and Japan. Southern U.S. suppliers can benefit from SUSTA's established presence at this show if they register by December 1, 2005. Participants who register by November 15, 2005, will receive an early-bird discount. For more information, contact Rob Beets of the Tennessee Department of Agriculture at Robert.Beets@state.tn.us or by phone at (615) 837-5517. Read about SUSTA's trade mission to the 2005 IPM show at www.susta.org/about/success_ipm05.html.

Gulf Food, Hotel & Equipment Exhibition
Dubai, United Arab Emirates
February 19-22, 2006

For the second time, SUSTA will exhibit at Gulfood, the fastest growing exhibition of its kind in the Middle East (www.gulfood.com). The trade-only exhibition is in its 11th year and is a meeting point for key manufacturers and buyers from the region. The Gulf countries depend greatly on the import of various food, foodservice and food processing products, purchasing about $10 billion in food and agricultural products. With a high per capita income level, consumers in the Gulf countries have a taste for new products and quality foods. Best prospects for this show include fresh fruits, beef, poultry, dried fruits and nuts, juices and concentrates, sauces, condiments, honey, snack foods, and other food products. U.S. suppliers that reserve a space with SUSTA will receive a nine square meter booth in the USA Pavilion, access to the USA exhibitor lounge, and an invitation to a reception held by the Agricultural Trade Office, all for a cost of $2,000. Companies that are unable to come to the tradeshow may still send product samples for display in the SUSTA pavilion and receive trade leads from the show for a fee of $100. The registration deadline for this activity is November 30. For more information, contact Ms. Corry de Wit of the Georgia Department of Agriculture European Office via email at georgiausagcdewit@arcadis.be or by phone at 011-32-2-6471815. Booths are going quickly for this exhibition - register soon.

For the first time, SUSTA is participating in a global-based initiative (GBI) in Korea during October and November 2005. A GBI called the Great American Food Festival is a collaboration between export-focused agricultural organizations to promote seafood and other food products from the United States.

Spearheaded by the Agriculture Trade Office in Seoul, Korea, SUSTA and a number of other cooperatives - including the U.S. Potato Board, California Walnut Commission, WUSATA, and the California Wine Institute - worked together to bring Korea the best that the U.S. has to offer. The events, held at the Westin Chosun in Seoul and the Westin Chosun Beach in Busan, promoted seafood, wine, potatoes, walnuts and other agricultural products.

The grand opening event took place October 7 and included 150 Korean guests feasting on creations of SUSTA Chef John Maxwell. On October 11, Chef Maxwell was the celebrity chef for a gala dinner for 200 guests celebrating the hotel's 92nd birthday. The meal included nine courses, each an elegant interpretation of southern cuisine.

These events kicked off a two-week promotion showcasing southern U.S. products, many of which will appear on menus in the outlet restaurants. The menu promotions continue through December 7. The festival in Busan will coincide with the Busan International Seafood Expo so buyers can sample seafood items from the southern U.S. Chef Maxwell will also give media interviews, participate in department store promotions and teach at a cooking school while in Korea.

The Southern Nursery Association (SNA) knows the international horticulture industry! In addition to their relationship with SUSTA, the organization has seeded an international partnership that continues to grow every year. SNA maintains a partnership with the Internationale Pflanzen Messe (IPM) show held every year in Essen, Germany. IPM is touted as the biggest horticulture trade show in Europe. Together, the IPM and SNA shows mean big horticulture business for suppliers from the southern U.S. For information about this year's IPM show and SUSTA trade events, read the Upcoming Events section of this newsletter.

On U.S. soil, the yearly SNA show was held August 11-13, 2005, at the Georgia World Congress Center. Some of the most prominent exhibitors and attendees showcasing plant products were from SUSTA states: Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia. The show attracts overseas interest and is a great place for producers and foreign buyers to interact.

This year, SUSTA hosted seven European buyers, two Japanese buyers, and a Japanese journalist from the horticulture trade to boost the international attention to U.S. horticulture. In addition to meeting suppliers at the show, buyers saw and felt the soil where southern horticulture products grow. In conjunction with the show, SUSTA brought the buyers to local Georgia nurseries. As an added bonus, the European buyers participated in one-on-one meetings with suppliers in North Carolina immediately after the show.

After more than 10 years of collaboration, participating buyers and suppliers continue to rank the SNA show and trade mission highly among all SUSTA Generic industry activities. SUSTA and SNA are a winning team.

Sixty-four companies from 14 southern states have requested over $4.5 million in matching funds from the Market Access Program (MAP) Branded Program to promote their agricultural products overseas in this program year, which began October 1, 2005. SUSTA and other cooperators administer the MAP program on behalf of the USDA's Foreign Agricultural Service. The program encourages the export of brand name U.S. food and agricultural products and enables small to medium-size agribusinesses to market their products internationally while risking smaller amounts of their own resources.

Companies based in Texas applied for the largest amount of funding, requesting over $964,000. Twenty-four companies from Florida solicited more than $944,000 for international marketing. Additional requests included companies from Georgia, Louisiana, North Carolina, South Carolina, Mississippi, Tennessee, Alabama, Arkansas, Kentucky, Maryland, Puerto Rico and West Virginia.

Through the Branded program, SUSTA reimburses companies up to 50% of eligible international marketing expenses, such as advertising, in-store promotions, and exhibiting at international trade shows. To qualify for the program, companies must be "small" according to Small Business Administration guidelines, or must be a farm cooperative. Branded products promoted using program funds must be at least 50% U.S. agricultural origin and labeled as "Product of the USA" or "Made in the USA." To participate, companies must also have at least $100,000 in total gross sales during the previous calendar year.

By utilizing MAP Branded funds, companies effectively double their international marketing budget. A company receiving $50,000 in Branded funds will spend $100,000 or more to promote their product in markets overseas. According to the USDA, since the Market Access Program began in 1985, U.S. agricultural exports have more than doubled. In fiscal year 2005, which runs from October 1, 2005 to September 30, 2006, export sales are projected to hit $59 billion.

To learn more about the MAP Branded program, visit www.susta.org/services/map.html. Companies apply to the program each year. We will be accepting applications for the next fiscal year beginning June 1, 2006.

Interested in up-to-date information from SUSTA? We would like to present our newest website addition: The Official Blog of the Southern U.S. Trade Association. The web tool is intended to provide exporters with the most up-to-date information about SUSTA's programs and events.

Information on the blog is provided by all SUSTA departments. The blog has been used to publish timely information for our company participants and other stakeholders. We will continue to use it to update you on our post-hurricane status as well as a supplement to our regular newsletters and email updates. Visit the blog online at http://susta.blogspot.com.