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The New Market Developer Issue 2, 2005

Issue 2, 2005
In this Issue:

New Location a Big Hit for 2005 FMI Show

The new prime location of the Michigan pavilion at the Food Marketing Institute (FMI) Show attracted many buyers to the Michigan pavilion. The new location also attracted 16 Michigan companies to exhibit in the pavilion, which doubled the number of participants from the previous year. The pavilion boasted 20 booths for the 2005 show.

Michigan’s companies again showcased their diverse products to international food buyers from nearly 133 countries and over 20,000 domestic buyers at the U.S. Food Export Showcase (USFES) of the Food Marketing Institutes’ Supermarket Industry Exposition – North American’s largest food show. The FMI shows were held May 1 – 3, 2005 at the McCormick Place in downtown Chicago.

Organized annually by the National Association of State Departments of Agriculture (NASDA) in conjunction with the U.S. Department of Agriculture’s Foreign Agricultural Service, this year’s USFES attracted significant interest throughout Asia and the Americas.

Exhibitors in the USFES Michigan Pavilion were:

  • Michigan Apple Committee – DeWitt, organization promoting Michigan fresh and processed apples.

  • Great Lakes Glads – Bronson, growers of fresh cut gladiolus, peony and sunflower floral bouquets. Potted peony and glamini plants were also showcased.

  • Cherry Central – Traverse City, manufacturer of Indian Summer apple juice, apple cider, applesauce, and Traverse Bay dried fruit products.

  • Thumb Oilseed – Ubly, manufacturer of soybean oil and low fat non-GMO soybean flour and soybean grits.

  • Loretta Baking Mix Products – Monroe, maker of baking mixes.

  • Honey Tree Inc. – Onsted, manufacturer of honey and honey products.

  • Chestnut Growers Inc. – E. Lansing, producers of American-grown peeled, sweet chestnuts, vacuum packed and frozen.

  • The Blueberry Store – Grand Junction, supplier of over 20 different products including preserves, jams, jellies, juice, salsa, blueberry concentrates, and dried blueberries.

  • Graceland Fruit – Frankfort, processor of a full line of infused dried and infused frozen fruits and vegetables.

  • Michigan Bean Commission – St. Johns, organization promoting Michigan dry edible beans.

  • Hanson Logistics – Benton Harbor, provider of logistics and refrigerated storage solutions in the Midwest.

  • Purity Foods – Okemos, manufacturer of spelt products such as pretzels and pasta

  • Cherry Growers –Grawn, producers of pie fillings, applesauce, various apple & cherry products, and shelf stable juices.

  • Perk & Brew – Ann Arbor, manufacturer of Kona coffee products

  • Zeeland Food Services – Zeeland, manufacturer of low saturated fat soybean oil and soybean meal.

  • Cherry Marketing Institute – DeWitt, represents and promotes U.S. tart cherry growers and cherry products.

Michigan Farm Bureau (MFB)/MDA Bus Trip Drew Record Numbers

As in past years, the Department in partnership with MFB and NASDA, hosted a bus tour for Michigan farmers, marketers, and legislators to Chicago for them to experience firsthand the importance of exports to Michigan’s agriculture industry and to the state’s economy. This year over 100 people from Michigan took part in the bus trip to visit the Michigan Pavilion at the FMI show on May 2, 2005.


Get Space Now for the 2006 FMI Show

The 2006 USFES held at the Food Marketing Institute’s show will again have a prime location on the show floor. The USFES show will remain in the front of the show floor offering companies a better opportunity to more domestic and international buyers.

Companies reserving and paying for booth space by September 30, 2005 will receive a $100.00 discount. Booth spaces paid for by September 30th will cost $2,200.00, after September 30th the cost will increase to $2,300.00. If you are interested in exhibiting in the Michigan Pavilion at the 2006 FMI show contact, Jamie Zmitko at (517) 241-3628 or zmitkoj@michigan.gov.


London Wine & Spirits Show

L. Mawby Vineyards traveled to London, England to exhibit at the London International Wine and Spirits Show that took place May 17-19, 2005. Two additional wineries from the Midwest and Northeast also exhibited their wines at this three-day show. 2005 was the third year that MIATCO and the Michigan Department of Agriculture have sponsored a Midwest/Northeast Wine Pavilion at the London Show.

An advertorial was placed in the Harpers magazine a weekly wine and spirits publication for the UK market with a circulation of 5,000. The half page advertorial showcased the wineries that exhibited at the London Wine & Spirits Show.

The show has raised awareness about the quality wines that come from the Midwest/Northeast wine regions. The wineries are starting to see sales into the UK and surrounding areas because of this promotion. As a wrap up activity to the trade show a buyers mission will take place in August. More details on the buyers mission will following in the upcoming months.


ABCC Promotion at Wings in Mexico

The next promotion will start the beginning of June and run until the end of June with Wings. Wings is a family style restaurant chain in Mexico. Wings will promote all four fruit items in various types of desserts. We are also partnering with the U.S. Dairy Export Council for this promotion. Attached is a poster that shows all the dessert choices that will be available during the promotion. Wings will have the ABCC promotions in 31 Wings restaurants and 10 specialty restaurants throughout Mexico City.


ABCC Trade Mission to Mexico

The Mid-America International Agri-Trade Council (MIATCO) will host a trade mission to Mexico August 21-25 to showcase Apple, Blueberry, Cherry, and Cranberry (ABCC) Products for the Hotel, Restaurant, and Baking industries in Mexico. This comes at a great time, as the total value of U.S. exports of food and agricultural products has increased by over 30% in just the last four years! The aim for the trade mission will be to create good relationships with importers and distributors while focusing especially on apple, blueberry, cherry, and cranberry products that are processed or used for baking ingredients. This will be an excellent opportunity to learn more about the market in Mexico, meet buyers as well as other importers and distributors, and develop contacts for future sales opportunities.

The cost of the mission is just $475 and will include all of the following services:

  • Import analysis and competitive store check for one product
  • Market briefing provided by the USDA/Foreign Agricultural Service and our In-market representative.
  • Guaranteed one-on-one meetings with buyers.
  • Table top Reception with buyers importers
  • Interpreters will be included

The deadline to register is July 1, 2005, and only a few spots remain open.

For more information on this great opportunity, contact Jamie Zmitko-Somers at (517) 241-3628 or zmitkoj@michigan.gov. Please hurry, as space is limited!

 

International Food & Beverage Buyers Coming to Michigan

International buyers will come to Michigan on July 28, 2005 for one-on-one meetings with Michigan companies. Over 10 buyers from around the world will attend these meetings. The buyers are interested in a range of products from shelf stable grocery items, beverages, snack items, fruit items, food ingredients and additives, and many additional items. Please click here to access the buyers’ profiles and the participation agreement. Companies with questions regarding this great opportunity should contact Jamie Zmitko-Somers at 517-241-3628 or zmitkoj@michigan.gov.


Check Out the Czech Republic

MIATCO and the Michigan Department of Agriculture will host a trade mission to the Czech Republic October 3-5, 2005. This trade mission was originally scheduled for March but was rescheduled due to conflicts with other major trade shows.

The Czech Republic is the center of trade for Eastern European countries so don't miss this great opportunity to learn more about the Czech Republic. Companies will receive an import analysis and a competitive store check for one product. Companies will also have the opportunity to take guided tours, have one-on-one meetings, and exhibit their products in a table top reception.

The Czech Republish has a population of 10 million with Prague being the major metropolitan area. The country imports over $2 billion worth of agricultural products each year, and 25% originate from the U.s. The retail sector is the most developed of all sectors and is growing at 6% a year with sales currently reaching $11 billion annually.

For more information on this great opportunity, contact Jamie Zmitko at (517) 241-3628 or zmitkoj@michigan.gov. Hurry as space is limited!


2004 Select Michigan a Huge Success

The 2004 Select Michigan Campaign was again a successful model for increasing the sale of local food products, resulting in a healthier rural economy and a more vibrant local food system. Its most visible success has been in helping to establish two Michigan commodities--peaches and asparagus--in Michigan retail chains at premium prices. But its long-term success is building consumer loyalty to Michigan-grown and-processed food products.

In 2004, the Select Michigan campaign ran supermarket retail promotions on fresh and processed items in the following product categories: peaches, asparagus, blueberry, carrots, apples, potatoes, sugar, chestnuts and onions. Together these Michigan crops comprise over $330 million in sales annually for the state.

The promotions were run in the following chains in the Detroit and Grand Rapids markets: Meijer, Spartan Stores, Kroger, K-Mart and Farmer Jack. Together these chains represent almost 80% market share in these markets; and Grand Rapids and Detroit represent the two major population areas in Michigan. While the promotions were focused in these markets, most supermarket chains with stores in other parts of Michigan included some elements of the Select Michigan promotion in those stores as well, and their buying was impacted chain-wide.

The 2004 campaign was funded in part by USDA grants, and in part by financial support from 20 different Michigan commodity groups, associations and companies representing the products being promoted by Select Michigan.

The Cooperative Development Services conducted the 2004 Select Michigan Evaluation. For this evaluation, they conducted over 35 interviews with retailers, campaign sponsors, campaign staff, consultants, farmers and third parties. Most of the interviews were with the retailers and campaign sponsors. All of those interviewed believe that the Select Michigan program is a very valuable program for the state, and that the program should continue. With the great loss of jobs in Michigan, those present at the supermarket tastings noted how excited many consumers were to support fellow Michigan citizens with their food dollars.

All interviewees saw value in the Select Michigan program and wanted it to continue. Campaign sponsors who are already established in Michigan supermarkets see the campaign's greatest value as educating consumers about locally grown, and creating consumer loyalty. Campaign sponsors who are new to Michigan supermarkets, or are being introduced to retail via the Select Michigan campaign, believe the campaign's ability to solidify their business with Michigan retailers and build those relationships is of the greatest value.

The 2004 Select Michigan Campaign had a significant impact on many growers involved in the effort. Approximately 3400 Michigan growers supplied the 20 campaign sponsors with the variety of products represented in the 2004 Select Michigan Campaign. Of these, about one-fifth have annual gross sales of less than $100,000, with the other four-fifths divided somewhat evenly between those growers with annual sales of $100,000-500,000 and those with over $500,000 in sales annually. Therefore, it appears that the Select Michigan program impacts growers of all sizes.

Campaign sponsors were asked if their growers received price premiums, sold higher volumes of product, or had more secure markets as a result of the Select Michigan program. Forty-one percent of the sponsors said their growers received price premiums, and 41% said their growers sold more product because of Select Michigan. While these numbers are impressive, the strongest reason agreed to by sponsors for involvement in Select Michigan (47%) is that the program provides them with more secure markets. Even for those sponsors who said their growers had higher prices or volumes due to the campaign, most still stated that secure markets were the most important to them. Many Michigan commodities are facing growing domestic and international competition, and establishing a loyal retail and consumer base locally is important to them.

The 2005 campaign was kicked off in May with asparagus. Check the MDA web site often for information on upcoming 2005 promotions.


Select Michigan Country Store - Take Two

The Michigan Department of Agriculture is proud to again sponsor "The Select Michigan Country Store" at the Michigan State Fair. The store will again be located in the Agriculture Building at the State Fair held in Detroit August 10-21, 2005.

"The Select Michigan Country Store" will feature various Michigan shelf stable specialty food products. The corner store will have the various companies’ products on display for the entire twelve days of the State Fair. All of the companies will then be allowed to sample and sell their products to the fair visitors for either one or two days during the twelve days. Companies will also be allowed to provide sell and order sheets for additional sales during the days when they are not assigned a spot in the selling area.

As a participant in "The Select Michigan Country Store", your Michigan products can be sampled and sold to fair participants from 11:00 am to 7:00 pm for one or more days, during the fair. The Agriculture Building is the exclusive area at the fair for the sale of Michigan food products for off-site consumption.

Up to 24 vendors will be allowed into "The Select Michigan Country Store" to display and sell their shelf stable Michigan specialty food products in the Agriculture Building. This great opportunity will only cost $50.00 for Michigan specialty food producers selling Michigan grown and/or processed products.

Reservations are now being accepted on a first come, first served basis. If you would like to promote your Michigan products and be a part of the "The Select Michigan Country Store", please respond to me at 517-241-3628, or by e-mail at zmitkoj@michigan.gov, to reserve your spot.


Biodiesel Bus Tour in Southeast Michigan

The Michigan Biodiesel Alliance sponsored a "Southeast Michigan Biodiesel Bus Tour" on Monday, April 11, 2005 with a full bus of 65 participants. With diesel fuel and regular unleaded gasoline prices spiking in early spring to the $2.30-2.40 per gallon price range, a cross-section of customers wanting information and education on alternative fuels quickly filled the bus.

The Southeast Michigan Biodiesel Bus Trip was planned by the Michigan Biodiesel Alliance and sponsored by MDA, Michigan Soybean Promotion Committee, Michigan Farm Bureau, Meijer, MDLEG, U.S. Energy Department, Ann Arbor Area Clean Cities and National Biodiesel Board. Verhey Transportation, Inc. of Grand Rapids graciously provided their diesel motor coach (powered by Crystal Flash B20 Soydiesel XC fuel) and the driver to transport the group during the day.

Biodiesel is a cleaner burning alternative to petroleum-based diesel fuel (raw soybean and other vegetable oils, or waste grease or animal fats, are not biodiesel). Fuel grade biodiesel is made from renewable resources that have been processed and refined in strict accordance with industry standards known as ASTM-6751, which is issued by the American Society of Testing and Materials. Pure biodiesel fuel is referred to as B100 (100% pure biodiesel). B100 is then blended with petroleum diesel in various concentrations. These blended fuels are then denoted as "Bxx" with "xx" representing the percentage of biodiesel in the final blend. As an example, B2 would mean 2% biodiesel and 98% petroleum diesel fuel.

The tour started and ended at Farm Bureau Center in Lansing, with stops along the way which included:

  • MDA Motor Fuels Quality, Geagley Laboratory in East Lansing and the testing of fuels;

  • Oakland University in Rochester on how biodiesel fuel is made;

  • Presentation by the Senior Manager, Environmental and Energy Planning of DaimlerChrysler on their support of biodiesel and outlook as well as a chance to view a 2005 Jeep Liberty CRD factory fueled with B5 biodiesel fuel;

  • Wacker Oil Corporation in Manchester sharing its involvement with biodiesel

  • Meijer’s B20 pump Grand Opening kickoff celebration in Ypsilanti;

  • Tour of the U.S. EPA’s National Vehicle and Fuel Emissions Laboratory in Ann Arbor;

  • Additional speakers on the bus included people from: Next Energy, St. Johns Public Schools, Ann Arbor Clean Cities Coalition, National Biodiesel Board, Michigan Soybean Promotion Committee, SERCO LLC, Ag Solutions, Inc. MDEQ and MDLEG State Energy Office, and others about their work with biodiesel fuel while traveling from stop to stop onboard the B20 fueled motor coach.

The group was particularly pleased to learn that Dick VandeVusse, President of Ag Solutions in Gladstone, MI and Gregory Koestering, CEO of SERCO LLC in Detroit both planned on developing a biodiesel plant in those towns. John Oakley, Treasurer of Capital Area Producers Co-operative indicated that his group is working with MDA, Michigan Soybean Promotion Committee, Michigan Farm Bureau, USDA Rural Development, MSU Extension and others on a comprehensive feasibility study and preliminary business plan for a soybean crush plant and/or biodiesel plant in Gratiot County and other alternate sites for a 5-10 million gallon biodiesel facility.

Four state legislators, Representatives Neal Nitz, Richard Ball, Kathleen Law and Jeff Mayes were part of the entire SE Michigan Biodiesel Bus Tour. They enjoyed meeting U.S. Congressman John Dingell, State Senator Liz Brater and State Representative Pam Byrnes as part of the Ann Arbor Clean Cities and Meijer Dedication Ceremony for retail B20 biodiesel pump at Meijer Thrifty Acres facility in Pittsford Township (near Ann Arbor). Participants were pleased to note that the Meijer retail price was the same between the B20 biodiesel pump and regular diesel fuel pump.


Ag Industry Mourns Loss of Sandra Hill

Sandra Hill, 68, a leader in Michigan's agriculture and legislative communities, passed away Saturday, June 18, 2005, at her home in Montrose, Michigan, after a short illness. She was a former Michigan State Representative, and served as the commodity coordinator for the Michigan Department of Agriculture's (MDA) Agriculture Development Division, since January 1999. Read the MDA press release.

 


International Promotion Calendar

July 10-12, 2005 Summer Fancy Food Buyers Mission New York, New York
July 15-17, 2005 Ingredients Buyers Mission New Orleans, LA
July 25-29, 2005 Midwest Buyers Mission MI, IL, IA
Aug 29-Sept 2, 2005 Korean Food Agent Market Show Seoul, Korea
Aug. 22-24, 2005 Mexico Trade Mission Mexico City, Mexico
Sept. 6-8, 2005 Exphore Hoteles Y Restaurantes Show FSP! San Jose, Costa Rica
Sept. 11-14, 2005 ERCM International Buyer-Seller Event Miami, FL
Sept. 14-17, 2005 International Food & Hospitality Show FSP! Bangkok, Thailand
Sept. 16-18, 2005 Natural Products East Show Buyers Mission Washington, D.C.
Oct. 5-7, 2005 Health Ingredients FSP! Tokyo, Japan
Oct. 3-5, 2005 Czech Republic Trade Mission Prague, Czech Republic
Oct. 8-12, 2005 Anuga Food Show Plus! Cologne, Germany
Nov. 15-16, 2005 Kosherfest Buyers Mission New York, NY

Contact Information

 

Michigan Department
of Agriculture

Dan Wyant, Director

MDA Agriculture
Development Division

PHN: (517) 241-2178
FAX: (517) 335-0628

Robert Craig 
Division Director
craigr@michigan.gov


Christine E. Lietzau
Select Michigan Program
(517) 373-9800
lietzauc@michigan.gov

Jamie Zmitko-Somers
International Marketing
Specialist
(517) 241-3628
zmitkoj@michigan.gov

Linda Jones
Grape & Wine
Program Manager
(517) 373-9789
jonesl9@michigan.gov

David Creighton
Grape & Wine
Specialist
(517) 241-3415
creightond@michigan.gov

Karel Bush
Grape & Wine
Assistant
(517) 241-4468
bushk9@michigan.gov

www.mdainternational.com

  

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