Issue 4, 2007
In this Issue:

Export Education for Experienced and Novice Exporters

When Michigan companies hear that consumption of U.S. food products is growing three times faster around the globe than in the U.S., many companies are eager to start exporting but do not know where to start.  Although exporting seems like a complicated process, any experienced exporter will tell you that there are vast benefits to selling outside the U.S., and that the secret to being a successful exporter lies in being an educated exporter.

This winter, MDA's International Marketing Program will host an informational seminar on February 22, 2008, in E. Lansing. Some of the day's highlights will include how to research the best markets for your company's products; and an explanation of how to prepare the terms of sale, payment methods and quotes. There will also be extensive use of examples to make participants feel comfortable with export documentation and procedures.

For experienced exporters the seminar is not only an excellent review, but will also cover payment and distribution processes in depth, and other helpful programs.  Presenter Dennis Lynch is ready to listen and respond to specific concerns of any current or prospective Michigan exporter.

Jan Blaho, of the Export-Import Bank of the United States (Ex-Im Bank), will also be available to discuss financing and payments in regards to exporting.  Ex-Im Bank is the official export credit agency of the U.S.  Mr. Blaho will speak on mitigating non-payment and discuss available financial help for Michigan companies.  G. Tomas M. Hult, Ph. D., of the International Business Center at Michigan State University, will be speaking at lunch about globalEDGE™, a knowledge web-portal that connects international business professionals worldwide to a wealth of information, insights, and learning resources on global business activities.

Fruits Promoted at European Show

Blueberries, cherries, and cranberries were highlighted in a fruit pavilion at the Food Ingredients Europe (FI Europe) Show in London, England, October 30 – November 1, 2007.  The FI Europe show brings together over 20,000 buyers from 100 countries with an interest in ingredients for the food processing industry.  Those exhibiting in the pavilion included:  Atwater Foods, Inc.; Wisconsin Cranberry Cooperative; U.S. Highbush Blueberry Council; and Cranberry Marketing Committee. 

Michigan Pavilions at Two Important Trade Shows

MDA is please to announce Michigan pavilions at the U.S. Food Export Showcase (UFSES) and the National Restaurant Association (NRA) Show.  The USFES show is taking place April 27-29, 2008 at the McCormick Place in Chicago.  The NRA show is May 17-20, 2008 also at the McCormick Place in Chicago.  Each show offers great opportunities to meet with qualified international and domestic buyers.

The cost of a 10’ x 10’ fully furnished booth in the Michigan pavilion at the USFES is $2,500, if paid for by Dec. 21 or $3,000 after Dec. 21.  For the NRA show, the cost of a 10’ x 10’ booth in the Michigan pavilion is $2,450, with payment due by February 1.  For more information please contact Jamie Zmitko-Somers at (517) 241-3628 or zmitkoj@michigan.gov.

Branded Program

If you are looking to expand your international marketing budget and your bottom line, Food Export - Midwest's Branded Program can help your company gain exposure in countries around the globe by stretching your promotional dollars!  Through the USDA, Foreign Agriculture Service, the Branded Program supports small U.S. food and agriculture companies by reimbursing up to 50 percent of approved international marketing and promotional activities, such as:

• Advertising
• In-store promotions
• Public relations
• Product literature
• Freight costs for samples
• Package and label modifications
• Overseas tradeshows
• Certain domestic tradeshows with international attendance

To be eligible to participate in this program, your company must be a small company according to Small Business Administration guidelines, having 500 or fewer employees.  In addition, your products must contain at least 50 percent U.S. agricultural product, exclusive of added water and packaging. 

Michigan Exporter Database

The Michigan Department of Agriculture is offering a great opportunity for exporters of agricultural food products to gain free exposure to international buyers interested in Michigan products.  Participating companies will have their profiles displayed in the MDA’s Exporter Database, which is available online at the MDA International Web site: mdainternational.com. If you or someone you know would like to be added to the database, please send contact information to Jamie Zmitko-Somers by email at zmitkoj@michigan.gov or by fax to 517-335-0628.   

Michigan Grape and Wine Industry Council

At its November meeting, the Michigan Grape and Wine Industry Council released its annual highlights report for Fiscal 2007.  The listed accomplishments included:

• An Economic Impact Study on the Michigan wine industry was completed by MKF Marketing as part of a national study of grape industries in the U.S.  The report indicates that grape industries in Michigan contribute over $790 million to the economy.
• The Council commenced a Strategic Planning exercise to set direction for the future.  Work continued in November 2007 and a final report will be completed early in 2008.
• LKF Marketing of Kalamazoo began the process to upgrade to the Council’s Web site which will be completed and launched in Fiscal year 2008.
• The final phase of the project to “Define the Michigan Wine Experience” was published and made available on the Council’s Web site, after a preliminary report was presented at the Annual Meeting in March 2006.
• Work is ongoing with the College of Agriculture and Natural Resources at Michigan State University regarding the need for technical support for the wine industry, with the goal of developing new and expanded support programs.

Michigan wines make great gifts.  Visit www.michiganwines.com for ideas for holidays.

Governor Jennifer M. Granholm presents a basket of Mixed Best of Class wines from the Michigan Wine and Spirits Competition to Tarik Daoud of Al Long Ford, the winning bidder in the Youth Livestock Auction at the Michigan State Fair in August. The basket sold for $4,300.  

Select Michigan Pavilion Highlighted Michigan Food Businesses at Restaurant Show

Fifteen Michigan food businesses displayed and sampled their products for some of Michigan’s most successful restaurant owners, chefs, and foodservice professionals as part of a special “Select Michigan Pavilion” during the 2007 Michigan Restaurant Show held on October 16 and 17, 2007, at the Rock Financial Showplace in Novi.

The Select Michigan Pavilion, hosted by the Michigan Department of Agriculture’s (MDA) Select Michigan Program, was one of more than 300 exhibits of food, equipment, wine, spirits, interiors, tableware, soft drinks, technology, business advice and design all focused on the foodservice industry. The goal of the pavilion was to connect Michigan companies with potential customers while increasing awareness of the diversity of Michigan food and agriculture products and the benefits of buying locally.

“For just about any food product you want to buy, there is a company in Michigan that produces or processes it,” said MDA Director Don Koivisto. “By sponsoring Michigan companies at shows like this, we are able to showcase the diversity and quality of Michigan companies and their products.”

Michigan’s foodservice industry plays an integral role in Michigan’s economy, employing more than 436,000 people and generating over $11.3 billion in total annual sales. Purchasing locally grown and processed food and agriculture products helps support Michigan farmers and the state’s second largest industry. Michigan agriculture generates $60.1 billion for the state economy and circulating revenue in local communities.

The Michigan companies that participated in the Select Michigan Pavilion were: Eden Foods of Clinton; Michaelene's, Inc. of Clarkston; Fruit House Winery of St. Johns; LorAnn Oils, Inc. of Lansing; Black Star Farms of Suttons Bay; Sanders - Morley Candy of Clinton Twp.; Carmi Flavor & Fragrance of Walled Lake; Thumb Oilseed Producers of Ubly; Riveridge Produce Marketing Inc. of Sparta; Festida Foods of Cedar Springs; Michigan Dry Bean Industry; Peterson Farms Fresh of Shelby; Serra Cheese Co. of Clinton Twp.; Heartland Ingredients of Hillman; and Win Schuler Foods of Southfield.

For more information about MDA’s Select Michigan Program and its retail and consumer promotions, please contact Christine Lietzau, program manager, at (517) 373-9800 or by email at lietzauc@michigan.gov.

“Select Michigan. It’s good for you, our growers and our local economy.”

Census Gives Farmers a Voice in Their Future

Michigan’s farmers will soon have the opportunity to make their voices heard and help shape the future of agriculture for years to come, with the 2007 Census of Agriculture.

Conducted every five years by the U.S. Department of Agriculture, the Census is a complete count of the nation’s farms and ranches and the people who operate them.  The Census looks at land use and ownership, operator characteristics, production practices, income and expenditures and other topics.  It provides the only source of uniform, comprehensive agricultural data for every county in the nation.

“The Census of Agriculture provides information that is not available anywhere else – 2002 information was used to show agriculture provides $60.1 billion in direct and indirect benefits to Michigan’s economy,” said Dave Kleweno, director of the Michigan Field Office of USDA’s National Agricultural Statistics Service (NASS).

NASS will mail out Census forms on December 28, 2007, to collect data for the 2007 calendar year.  Completed forms are due by February 4, 2008.  Producers can return their forms by mail or, for the first time, they have the convenient option of filling out the Census online via a secure Web site.

Peru Study Tour:  Opportunities in the Global Marketplace for Midwestern Agribusiness 

Three More Companies Complete Julian-Stille
Value-Added Agriculture Grants

Mid-Michigan Specialty Crops LLC, (MMSC) located in Ithaca, processes various types of dry edible beans and edible soybeans.  A Julian-Stille Value-Added Agriculture Grant has allowed MMSC to install new soybean color sorting equipment and other processing-related equipment.  The equipment will increase output capacity, provide higher quality control for domestic and export markets, and provide improved services and marketing options for local producers.  As a result of this renovation, the MMSC facility has obtained JAS organic certification and is the only JAS certified processing facility in Michigan.  MMSC is expected to double its processing capacity and is now able to process various types of beans and edible soybeans.  MMSC can now assist producers in reaching new domestic and export markets.  MMSC has added two new positions with a total new capital investment of $332,588.  Great job, Mid-Michigan Specialty Crops LLC!

Tandem Ciders, located in Suttons Bay, performed a market feasibility study using Tandem’s business plan as a model for the first hard cidery in Northwest Michigan.  The final report validates that a hard cidery in Northwest Michigan does have potential for success.  As a result of this study, Tandem has purchased a location in Suttons Bay within Leelanau County for a hard cider production facility and a tasting room.  The study results allowed Tandem Ciders to validate the viability of the project and to obtain financing.  Tandem Ciders shared the results of the feasibility study with growers, consultants and future entrepreneurs at the Great Lakes Fruit, Vegetable, and Farm Market Expo in Grand Rapids, MI, on December 7, 2007.  Great job, Tandem Ciders!

Nitrate Elimination Co., Inc, (NECi), located in Lake Linden, has developed a series of nitrate testing products specifically designed for the agriculture industry.  The kits that allow for on-site testing are available in: soil test kits, water test kits, plant test kits, and livestock test kits.  NECi conducted a market research study to determine the most effective means of reaching out to educate and inform Michigan farmers on the latest nitrate management strategies and tools available. The project enabled NECi to collect and analyze information, which is being used to guide marketing efforts and business development planning.  NECi has begun to receive new orders and technical inquiries from new areas of the U.S. due to the market research.  Awareness of NECi and its ag-test kit product line is more widespread in large part due to the effects of the Julian-Stille Value-Added Agriculture grants and they have added one and one-half positions, with total new capital Investment of $62,798. 
Great job, Nitrate Elimination Co., Inc.

Michigan's Ethanol Fuels Industry Update

MDA has been especially active working with Michigan's agri-businesses and corn and soybean industries to promote, develop, and assist in policy development as well as marketing renewable fuels such as ethanol and biodiesel fuels.

Michigan's corn-to-ethanol plants have played a major role in Michigan's growing Bioeconomy.  Michigan's corn industry, ethanol plants, and the Michigan agri-food industry have invested nearly $1 billion during the past decade.  This was accomplished with state and local government incentives and Michigan State University assistance.   These efforts have established an impressive renewable fuels industry in our state.  More information is available at renewablefuelscommission.org.

This corn-based ethanol industry foundation should be encouraged to innovate and expand.  The ethanol industry can build upon this foundation by expanding into cellulosic ethanol production.

Corn grain ethanol plants will continue to serve a crucial role at both the national and state levels.  With the opening of Marysville Ethanol LLC expected early next year, Michigan's annual ethanol fuel production capacity from its five operating plants will be set at 267 million gallons. Michigan will rank 7th in the nation, according to the Renewable Fuels Association.
 
NextGen Energy, in Watervliet, announced earlier this fall that it expects to have its 58 million gallon ethanol plant built by the end of 2009.  However, both Indeck Energy in Niles and NextGen Energy in McBain have postponed their ethanol plant construction plans for a while.

Michigan is approaching, but not yet at the 10 percent level of all transportation fuel used in Michigan.  There are concerns about our country's corn supply.  Corn needs to be both competitive and abundant.  Corn needs to serve as livestock feed, transportation fuel, consumer food markets, and to be produced and used in an environmentally sound manner.

A challenging business outlook has all but slowed the growth of corn-based renewable fuels industry in Michigan and the U.S.  The Federal Energy Bill and Federal Farm Bill that Congress is debating are expected to have a significant impact on all of these commodities. 

Finally, Mascoma, Inc., announced its plans to build the first commercial cellulosic ethanol plant in Michigan.  This plant will use primarily wood chips and some agricultural crop residues.  Mascoma expects to invest more than $100 million to build a nearly 40-50 million gallon cellulosic ethanol plant in northern Michigan, by the end of 2011.  A feasibility study and business plan is in the works. Other cellulosic-based renewable energy plants have also been proposed in our state, but need to complete comprehensive feasibility studies and business plans.

International Promotion Calendar

In the past we've offered a listing of upcoming events in a small calendar. In an effort to offer you more comprehensive information we are now providing a link to an upcoming events page, which in turn offers links to individual event information.

• Upcoming Events: Trade Shows, Buyers' Missions and Food Show Plus! Services Information

Contact Information