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September/October 2006 INsight excerpts
Building Overseas Partnerships for MAP Branded Success
Building Overseas Partnerships for MAP Branded Success Andy Hewes of Coastal Rice and Futures of Houston, Texas, knows that establishing strong business relationships is crucial to successful exporting. More than seven years ago, Coastal Rice partnered with a local businessman in Ghana to promote American rice to consumers in the country. Using the Market Access Program (MAP) Branded, Coastal Rice and its importer have increased consumer awareness of U.S. rice through advertising. "Our buyer has really put the brand on the map there due to advertising assistance from the Branded program," says Hewes. Coastal Rice made contact with the Ghanaian importer during a trade mission to Africa sponsored by the U.S. Department of Agriculture and U.S. Rice Producers Association. The importer, a local businessman who attended college in Alabama, has worked with Coastal Rice to establish their identity in Ghana through extensive advertising. "Ghana is a branded commodity market," Hewes explains, where rice is sold in 50 kilogram bags. However, despite selling the product in such a large quantity, there is great demand for the consistency and quality implicit in a brand name. In order to compete with the country's leading rice wholesaler, a large foreign trading company, "little guys have to advertise," says Hewes. "MAP has allowed our importer to advertise like a big guy and compete." According to Hewes, the Branded program has helped U.S. rice tremendously in the Ghanaian market. "The ability to advertise creatively and broadly has been extremely helpful," he says, noting that Coastal Rice's use of Branded funds has given their contact in Ghana the confidence to advertise aggressively and establish the brand's identity. Marketing the rice has helped not only Coastal Rice, but the local company in Ghana and the profile of U.S. rice as well. "For us and our customers, this program has been a real success story," says Hewes. "It's worked just exactly the way it's supposed to." Making a Mark in Mexico's Food Service Industry To help southern U.S. suppliers break into the Mexican food service industry, SUSTA sponsored a pavilion and reception at the Exphotel trade show in Cancun in June 2006. Suppliers were invited to display products in the pavilion and make contact with buyers at the reception, which was co-sponsored by sister organizations MIATCO and WUSATA and organized by the Agricultural Trade Office (ATO) in Mexico. Three U.S. companies exhibited in SUSTA's pavilion at Exphotel June 12-16. Exphotel, the most important event for the hospitality sector in Mexico, attracted more than 6,000 qualified visitors from the hotel, restaurant, bar and discotheque industries. Louisiana Chef Roy Lyons demonstrated the use of southern U.S. food products and prepared dishes using samples from companies exhibiting with SUSTA. Participants in the SUSTA pavilion made contact with 30 importers and received immediate orders for $1,200. These companies project sales of $30,000 resulting from contacts made at the show. SUSTA representatives from Georgia, Louisiana, Tennessee and Texas assisted companies by shipping products from the U.S. before the show and acting as interpreters for U.S. companies meeting Mexican buyers. The state representatives also provided valuable market information to companies, together with the ATO. During the first two days of the show, exhibitors in the pavilion gave potential business contacts invitations to the reception hosted by the ATO and state regional trade groups. At the reception on June 15, food donated by the exhibitors was served and showcased in a tabletop display at the center of the room. This reception, along with morning meetings before the show, gave participants an opportunity to meet one-on-one with key buyers. Suppliers wishing to gain more exposure in Mexico's hotel, restaurant and hospitality industry may also exhibit in the USA pavilion at ABASTUR 2006 in Mexico City from October 4-6, 2006. To learn more about this opportunity, contact the USDA Mexico City ATO at (011-52-55) 5140 2600 or atomexico@usda.gov.
Southern U.S. pecans made a splash at the International Food Ingredients Additives (IFIA) trade show in Tokyo, Japan, held May 26-June 2. A SUSTA booth featured product samples and literature from seven suppliers from the region, who also contributed product for use in a culinary demonstration at the Intercontinental Hotel. SUSTA's presence in the market offers abundant opportunities for exporters as Japanese importers and consumers become familiar with pecans and how to include them in their cuisine. This is SUSTA's third year promoting pecans in Japan with a focus on educating consumers, importers and chefs about how to buy, store, and use pecans in local cuisine. Since Japanese consumers are very health-conscious, emphasis on the health benefits of pecans sparked interest in the products showcased at IFIA and in the seminar. Growing interest in the pecan, both alone and as a product ingredient, has created demand for imports of the nut. Seven pecan companies from the SUSTA region sent samples and brochures for the promotion at IFIA and culinary demonstration. Participants included Tres Gringas, Rio Grande Organics, Wash Allen's Pralines, Holiday Farms, Charlene's Sweets, Elegant Edibles and Acorn International. SUSTA representatives garnered 34 trade leads at IFIA, and at least two companies project sales resulting from their participation. Chef Kevin Williamson of Austin, Texas was featured in the hotel seminar and demonstrated the use of pecans in several dishes in SUSTA's booth at the show. Chef Williamson's recipes were also translated and sent to seminar participants to further boost awareness of the pecan among key industry contacts. The continued presence of pecans in the Japanese market and future SUSTA activities will foster more trade relationships between suppliers and importers. As a follow-up to this activity, a group of Japanese buyers will visit Georgia and Texas in December 2006. See "Upcoming Events" for more information.
Director's Corner I'm pleased to introduce myself and glad to have met many of the states' international marketing staff and exporting companies that SUSTA partners with since I got on board about a month ago. There are still many of you to meet but I'm already impressed with your enthusiasm in promoting southern U.S. food and agricultural products. The USDA/Foreign Agricultural Service programs are not new to me, but working within the State Regional Trade Group realm surely is. I joined SUSTA after heading up the FAS-funded international division of the Southern Forest Products Association, a trade association representing the southern U.S. lumber industry. Before that I managed export promotional campaigns for America's national forest products trade association in Washington, D.C., which followed a three-year stint in Brussels, Belgium, managing public relations campaigns for a number of agricultural export groups funded by FAS. That's 14 years - my entire professional career! - involved in FAS programs. I remain very impressed with SUSTA's hardworking and dedicated staff. There's a lot of behind-the-scenes work we do to obtain FAS funding and ensure that your and our activities and expenditures are within FAS rules. Every penny we spend is scrutinized by federal auditors each year. And an impeccable audit is not only a feather in SUSTA's cap but vital in ensuring continued FAS funding in the future. There's a lot of work to do. My immediate goal is to get SUSTA staffed to its pre-Katrina levels - we've been short four staff since the beginning of the year - in order to better serve you and relieve overworked staff. I'm also preparing and equipping staff to minimize any interruptions should we be forced to evacuate again. At the same time my goal is to improve the transparency of our budgeting, funding, and program management systems in order to strengthen trust in our organization. It's great being on board and I look forward to working with all of you. I welcome hearing suggestions from you and feedback on how we're doing.
China Fisheries & Seafood Expo Demand for seafood is soaring in China, with imports tripling over the past six years to $2.9 billion. In 2005, U.S. fishery product exports reached a record $356 million, a 36 percent growth from the previous year. By the end of this decade, China is poised to become the largest importer of seafood in the world. More than half of China's seafood imports enter Qingdao and the surrounding Shangdong province. Suppliers of seafood from the SUSTA region are invited to display products and literature in SUSTA's booth at the China Fisheries & Seafood Expo (www.chinaseafoodexpo.com) in Qingdao this November. Over 15,000 visitors from more than 60 countries attended the 2005 Expo. For $250, companies will receive shared space in an 18 square meter furnished and decorated booth at the show, and can participate in one-on-one meetings with qualified buyers. SUSTA will also provide two interpreters to help exhibitors conduct business transactions, and assistance paying for sample shipments. For more details about this event, view the flier online at www.susta.org/eventdetails.html#cnseafood. To register, contact Dot Williamson (williad@doacs.state.fl.us) at (850) 488-0163 or Shirley Estes (sestes@vaseafood.org) at (757) 874-3474. Busan International Seafood Expo & Trade Mission In 2004, Korea was the fifth largest market for U.S. seafood, importing $136 million in fishery products. Korea has a large trade deficit in seafood, importing $2.3 billion in 2004, which is only expected to increase given the country's high per capita consumption. Consumers generally view U.S. seafood as high quality and some of the major species imported include scallops, monkfish, eel, croaker, and blue crab. For the fourth year, southern U.S. seafood suppliers are invited to participate in the Busan International Seafood Expo (www.busanseafoodexpo.com) and showcase products in SUSTA's booth. SUSTA representatives will assist participants with one-on-one meetings with Korean seafood importers, and a seafood chef will prepare product samples at the show. The meetings, together with a dinner for suppliers and importers hosted by the ATO, will educate participants about consumer preferences, current import patterns, foreign competition, and marketing and pricing of products. Suppliers who do not wish to attend the Busan show may send product samples or literature to be displayed in the SUSTA booth. View the flier for this activity at www.susta.org/eventdetails.html#busan06. To register for this event, contact Shirley Estes (sestes@vaseafood.org) at (757) 874-3474 or Mr. Paul Balthrop (balthrp@doacs.state.fl.us) at (850) 488-0163. Food & Hotel China Show The U.S. is China's largest supplier of agricultural, fishery and forestry products. From January to May 2006, agricultural imports equaled $4.2 billion, a 20 percent increase from the same period last year. Continued growth is expected, offering great potential for U.S. exporters of seafood, poultry, meat, fresh fruits and vegetables, prepared foods and other products. Food & Hotel China Shanghai (www.fhcchina.com) offers exhibitors the opportunity to introduce products to the retail, bar and restaurant, and travel and catering sectors. FHC China is the country's leading international food and hospitality trade event. In 2005, exhibitors included 678 companies from 32 countries and regions, and the show attracted over 15,000 visitors. SUSTA will exhibit at FHC Shanghai to promote the variety of quality products available from the southern U.S. to Chinese buyers. Suppliers are invited to send product literature for display in SUSTA's booth at the show, where representatives will provide sourcing and matchmaking services to Chinese buyers using the online directory of exporters at www.susta.org. To learn more about this opportunity to expose decision makers in China to your products, contact Ms. Bernadette Wiltz (bernadette@susta.org) at (504) 568-5986. Japan Pecan Reverse Trade Mission A SUSTA-sponsored reverse trade mission will bring Japanese buyers to Texas and Georgia in December to meet with suppliers of pecan products from the southern U.S. Key decision makers from Japan will travel to Georgia from December 4-5, 2006 and Texas from December 7-8, 2006 to meet one-on-one with pecan growers. In addition to displaying products in a mini trade show format, suppliers may arrange for buyers to visit their production facilities. The mission, which has a participation fee of $50, is open to suppliers of raw pecans, and cookies, spreads, sauces, candies, breads and muffins containing pecans. SUSTA will provide interpreters for companies participating in this mission. View the event flier at www.susta.org/eventdetails.html#pecanrtm for more details. Register by contacting Erica Skrine (eskrine@agr.state.ga.us) at (404) 656-3740 or Terry Ovalle (terry.ovalle@agr.state.tx.us) at (512) 463-7469. IFE India Trade Show With a population of 1.1 billion and a large and growing middle class, India is emerging as a market with great potential for exporters. India's hospitality industry is growing at a yearly rate of 15 percent, a pace that is matched by increases in food and beverage imports. Nearly 51 percent of Indians' consumption expenditures go for food, and as the world's 6th largest economy expanding by 8 percent a year, India is an attractive market for food and beverage suppliers worldwide. In addition, tariffs have steadily decreased since India joined the World Trade Organization. For the third year, SUSTA will exhibit at IFE India in New Delhi (www.ife-india.com). In 2005, this exhibition drew nearly 5,800 trade visitors, a 37 percent increase in attendance from the year before. SUSTA's booth at the show will offer information about the products available from the southern U.S. and services available through SUSTA. This activity is part of ongoing efforts to increase awareness about southern U.S. food and agriculture products through the India Initiative. To register for IFE India, contact Srinivas "Java" Javangula (srinivas.javangula@agi.alabama.gov) at (334) 240-7232. You may also contact Ms. Corry de Wit (georgiausagcdewit@arcadis.be) at 32-2-6471815.
Generic Success: India Initiative Generates Buzz, Sales SUSTA's India initiative made a modest beginning in November 2004 with i2i Consulting as in-country consultant. The journey so far has been encouraging and holds a great deal of potential. The initiative generated sales in the very first year of activities and increased sales are expected as SUSTA's India events continue. Southern cuisine, previously unknown to the Indian taste and palate, has been promoted in various ways. SUSTA Brand Ambassador Chef Vaishali Sood has demonstrated preparation of southern cuisine and products at many events, and the results of these efforts are quite visible. Cajun sandwiches have been served by Café Coffee Day, India's largest coffee chain with over 220 outlets. Ten restaurants and hotels have included southern U.S. dishes on their menus in New Delhi, Indore, Jaipur, Poona and Bangalore. The pecan was formally introduced for the first time in India at a press conference in January 2006. The first order for pecans from the SUSTA region has already been placed, and a second order is in the pipeline. SUSTA representatives received encouraging responses from the Indian importer community when exhibiting at trade shows. They are eager to know more about SUSTA region companies and their products. As a result, orders have been placed to more than 12 companies which were previously unfamiliar to Indian importers and consumers. SUSTA projects that total sales for the India Initiative by the end of the current year will equal nearly $100,000. Public relations activities conducted by the in-country consultant have given a positive image to the initiative, and media reporters are always eager to interact with SUSTA. For all the PR activities conducted in India, readership stands around 9 million. All SUSTA activities have found a place in the Indian media, both print and electronic. SUSTA region companies have taken notice of the India Initiative's success as well. Registration for the Trade Mission to India, held August 24-September 4, 2006, received such an overwhelming response that many of the interested companies could not be accommodated for the delegation. SUSTA looks forward to continued interest from suppliers as more opportunities to participate in the India Initiative arise. To learn more about exhibiting with SUSTA at the IFE India trade show in December, see "Upcoming Events" in this issue of INsight.
Korean Buyers Mission Results in Sales for Seafood Suppliers In March 2006, SUSTA and the USDA Agricultural Trade Office in Seoul, South Korea co-sponsored a mission bringing 10 buyers to the International Boston Seafood Show to meet with exhibitors from the SUSTA region who were interested in the Korean market. Following the show, the importers traveled to Florida to visit three major seafood plants there. At the Boston Seafood Show, the Korean buyers visited state pavilions representing the SUSTA region, including Florida, Louisiana, Maryland, Mississippi, North Carolina, South Carolina, Texas and Virginia. In addition to meeting with exhibitors from each pavilion, the Korean delegation also received a briefing from state representatives at each pavilion. Through these meetings and the trip to Florida, the buyers learned about different species and suppliers of seafood in the SUSTA region, some of which they had not heard of previously. Participants in the trade mission were able to introduce Korean importers to a number of seafood species available from the U.S., including: rock lobsters, yellow fin sole, Pacific cod, oil fish, mackerel, redfish, croakers, monkfish, skate wings, lobsters, crabs, crab meat, cod, pollock, shrimp, lobsters, crabs, live blue crabs, live lobsters, skate, black cod, hake fish, pollock milt, cod roes and milt, arrow tooth flounders, fried clams, organic shrimp, sole and rays. The Korean buyers expressed great interest in the products, and projected $3.6 million in purchases from seafood suppliers from the SUSTA region. An upcoming trade mission to the Busan International Seafood Expo in November will offer another opportunity for southern U.S. suppliers to gain insight into the Korean seafood market. For more information, see "Upcoming Events".
Apply Now! MAP Branded Funding Available SUSTA is accepting Market Access Program (MAP) Branded applications for the 2007 program year! If your company plans to promote a branded product that is at least 50% U.S. agricultural origin in foreign markets in 2007, you may be eligible to receive reimbursement for up to half of your international marketing costs. Companies apply to the program on a yearly basis and may request anywhere from $5,000 to $250,000 in funding. For more details about the program and to determine whether your company is eligible, visit www.susta.org/services/map.html. For 2007, SUSTA will use a paper application due to ongoing upgrades to our online system. The application may be downloaded as a Word document from www.susta.org/services/map_application.html. Please complete your application on a typewriter or computer and send a hard copy to the SUSTA office. Funding is also available for companies that plan to conduct promotional activities (including advertising, in-store promotions, exhibiting at international trade shows, and more) between now and the end of 2006. If your company is already participating in MAP Branded, you may submit an amendment to your application for the 2005-2006 program year. The amendment form may be downloaded from www.susta.org/services/map_application.html in Word format. New applicants may complete the online 2005-2006 application by signing in to www.susta.org. If you have questions about the application or amendment process for the Branded program, contact SUSTA at (504) 568-5986.
Don't Forget...Branded Claims Deadlines Your first in-store promotion in Asia was a great success - now make sure you get reimbursed for the expenses included in your SUSTA MAP Branded application! Submit Branded reimbursement claims to SUSTA within 60 days of the completion of your company's international marketing activity to ensure that you follow Branded program guidelines and receive valuable marketing dollars for your overseas promotions. Claim forms can be downloaded from SUSTA's website at www.susta.org/services/map_forms.html. Completed claim forms and supporting documentation (including detailed invoices, proof of payment, and proof of performance) should be sent via FedEx, DHL or UPS to the address below: If you have questions about the claims process, visit our "Frequently Asked Questions" at www.susta.org/services/map_faq.html#expenses or contact our office at (504) 568-5986.
If you are a successful exporter who has benefited from SUSTA programs, we would love to hear from you! SUSTA is always on the lookout for testimonials from companies that have used MAP Branded, SUSTA Generic promotions, Export Readiness Training, or other SUSTA resources to widen their market scope, increase sales or find new export opportunities. Success stories from you allow us to tell the Foreign Agricultural Service how our programs benefit U.S. suppliers and help ensure future program funding. To tell us about your export success, contact Mary Beth Wesdock (marybeth@susta.org). Articles will only be published in INsight or online with company permission.
Questions about MAP Branded? Curious about upcoming SUSTA activities in China? Want to know if your company qualifies for Export Readiness Training? Get your questions answered by SUSTA staff members in Miami Beach! SUSTA will exhibit at IFE Americas, the 9th Americas Food & Beverage Show in Miami from November 8-10. Look for our booth in the USA pavilion and stop by to ask questions, get program updates, or just say hello. For more information about IFE Americas, visit the show's website at www.americasfoodandbeverage.com.
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