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Issue 1, 2003


In this Issue:
Graceland Fruit Receives Nation's Top Export Award
The New Market Developer Goes Electronic
NACs Buyers' Missions
Michigan Firms Meet with International Convenience Store Buyers
Export Development Grant
CMI's German Promotions
MI Dry Beans to Cuba
Five new APRZs in MI
Grand Opening MI Ethanol

Marketing Opportunity for Specialty Food Products

International Web Site Gets New Look
International Calendar

Graceland Fruit Receives Nation's Top Export Award
A northwest Michigan food manufacturer, Graceland Fruit, has received the Edward R. Madigan United States Agricultural Export Excellence Award, the nation’s highest recognition for success in developing international markets.

Graceland was specifically recognized for their pioneering efforts in developing export markets in East Asia and Europe for their dried fruit products. Graceland has grown from a company of four employees in 1973 to one that now employs 173 and generates $30 million annually in sales. About $6 million in sales are generated through export.


The New Market Developer Goes Electronic

This is the last hardcopy version of The New Market Developer newsletter. Due to the expense of printing and the time it takes to release a hardcopy of the newsletter, the Agriculture Development Division (AgD) has decided to switch to an electronic version of The New Market Developer, which will be sent via e-mail.

AgD needs your e-mail address so we can get the electronic newsletter to you and help keep you informed of all the latest events. If you wish to remain on our mailing list please fax the attached form to (517) 335-0628 or send an e-mail to zmitkoj@michigan.gov with your e-mail address, and those of others who would be interested in receiving the newsletter electronically.

As always, The New Market Developer newsletter will also be available online at www.mdainternational.com. If you are unable to receive the newsletter electronically, please let us know, and we will arrange to have a black and white copy sent to you by mail or fax. Thank you in advance for your help and response.


NACs Buyers' Mission
Travel the world without leaving the Midwest. Every year MIATCO brings several delegations of international buyers to the Midwest to meet with hundreds of the region’s suppliers. Buyers’ missions give firms the chance to have face-to-face meetings with pre-qualified international food buyers, without the time and expense of having to exhibit at trade shows or travel halfway around the world.

Participating in buyers’ missions is a great way to:

• Get feedback about your product’s export potential

• Learn how business is conducted in foreign markets; and

• Start building relationships with key industry buyers, which is the first step to making an export sale.

Upcoming Buyers’ Missions


May 4 - 6: Fancy Food Show - Chicago, IL
May 4 - 6: FMI - Chicago, IL
May 19 - 20: National Restaurant Associations - Chicago, IL
June 1-3: International Dairy Deli & Bakery Association - Las Vegas, NV
June 29 - July 1: Fancy Food Show - New York, NY
July 26 - 30: Institute of Food Technologists - Chicago, IL
Oct. 11 - 14: National Assoc. of Convenience Store Buyers Mission - Chicago, IL

Michigan Firms Meet with International Convenience Store Buyers
Convenience store buyers from Mexico and Korea traveled to Chicago, Illinois and Orlando, Florida for meetings with Midwest producers of convenience store products. The buyers had one-on-one meetings with eight companies, three of them from Michigan, in Chicago before traveling to Orlando for the National Association of Convenience Stores (NACS) trade show. While in Orlando, the Mexican and Korean buyers met with an additional ten companies before attending the trade show.

The three Michigan companies: Bug Juice Brands, Uncle Ray’s, and Tri Meats, Inc., showcased their products to the Korean and Mexican buyers. The NACS buyers’ mission was funded using Market Access Program funds from the USDA. The 2003 NACS show will be held in Chicago, IL, with Mexican and Korean buyers again traveling to the show for one-on-one meetings. One-on-one meetings will also take place in Michigan.


Export Development Grants Projected to Leverage $326,000
MDA Director Dan Wyant announced that 14 Michigan food and agricultural organizations will receive Michigan Agricultural International Development Grants in 2003.

$326,000 of federal and private resources are projected to be leveraged by Michigan Agriculture Export Development Grants. "The MDA’s original investment of $100,000 has the potential of leveraging federal and private funds on a 3.26/1 basis for export market development" Wyant said.

This year’s grants are the continuation of a program initiated by the Michigan legislature, proposed and approved by the Governor in 1999. These MDA grants are for developing export markets for Michigan agricultural products. The legislation stipulated that the grants needed to leverage federal or private export assistance resources.

Wyant went on to say that "MDA staff and Michigan food and agricultural executives worked hard at crafting export market development proposals that would both leverage Federal and/or private funds while still complying with Federal program guidelines".

The Michigan International Market Development Grants awarded are as follows:

• Michigan Bean Industry Commission, $6,000, to promote dry edible beans in the Mexico

• Michigan Apple Committee, $15,000, establish fresh and processed apple sales to Mexico

• Michigan Grape & Wine Industry Council, $8,000, to promote Michigan wines in Europe

• Cherry Marketing Institute, $20,000, to organize promotions targeting the German and Mexican baking industries

• Michigan Cranberry Council, $5,000, to establish sales to the Mexican industrial baking industry

• Michigan Blueberry Growers Association, $5,000, to establish sales to the Mexican industrial baking industry

• Black Star Farms, $5,000, to promote Michigan fruit brandies and wine in Europe

• Honee Bear Canning, $12,000, to expand markets for canned fruit products in Japan, Korea, and Mexico

• L. Mawby Vineyards, $2,500, to promote Michigan sparkling wines in Europe

• Safie Foods, $5,000, to promote pickled vegetables in Hispanic markets

• Spelt Institute, $5,000, to promote spelt as a food ingredient to Japanese food processors

• WECO Co., Inc., $5,500, to promote hides and skins in China

• Key Lime Pie Company, $3,000, to promote frozen pie in Central America

• Tasso’s Epicurean Cuisine, $3,000, to promote twice-baked potatoes, processed salads and meat in Greece and to Olympic catering purveyors


Cherry Marketing Institute Uses MDA Grant for German Promotions
The Cherry Marketing Institute (CMI) presented awards to three German bakers at the Internorga Food Trade Show in Hamburg, Germany. The awards were part of CMI’s efforts to promote Michigan grown cherries with the German bakery trade.

A MDA International Market Development Grant, USDA Generic Market Access Program (MAP) funds, and Cherry Marketing Institute resources funded the promotion. Ruth Ralfs, CMI’s promotion coordinator in Germany, organized the program and Germany’s Confectionary Guild sponsored the event.

The promotion centered on a contest calling on German bakers to send in recipes and samples of baked cherry confectionary items. Contest rules included that each entry had to be a saleable item in their bakery shop, and the cherries had to come from the U.S. Bakers from all areas of Germany entered the contest. The Confectionary Guild in Hamburg selected the three winners; each received a trophy and a plaque.

The winning recipe was Kirsch-Zimt Tortchen, Cherry-Cinnamon Tort, from Siegfried Brenneis of Mudau, (southeast of Frankfort). The very tasty recipe featured a unique blend of Michigan-grown tart cherries, chocolate and cinnamon in cake-like dough.


MDA Grants Assist in Trade with Cuba
First Sale of Michigan Dry Beans to Cuba in Four Decades.

More than 600 metric tons of Michigan black and small red beans are being shipped to Cuba over a six month period under a $300,000 contract signed during the September 2002 Agribusiness Expo in Havana, Cuba. The sale is the result of the pioneering efforts of the Michigan Bean Commission, MDA, and Michigan Bean Shippers Association to enter the Cuban market.

The Michigan Farm Bureau and the Michigan Bean Commission made several market research and business trips to Cuba before securing this first order. Both organizations utilized MDA International Market Development Grant funds at different times to further their efforts to tap into this re-emerging market. MDA International Market Development Grants helped defray some of the costs incurred by these organizations.

MDA Director Dan Wyant had traveled to Havana in 1999 where he and other agricultural leaders explored the need for humanitarian trade of several Michigan farm commodities to Cuba.


Five New Agricultural Processing Renaissance Zones Designated in Michigan
A total of five new Agricultural Processing Renaissance Zones (APRZ) were designated in December 2002 to retain, expand or initiate value-added agriculture projects for Michigan’s food and agriculture industry. MDA staff worked closely with Michigan Economic Development Corporation (MEDC) staff on reviewing and recommending these projects. These zones will be exempt from all state and local taxes for up to15 years and are located in economically distressed areas serving the food and agriculture industry of Michigan. Legislative authority to designate APRZs expired on December 31, 2002, so these designations complete the APRZs available in Michigan.

Following is background information on each of the five new APRZs:

  1. Graceland Fruit Company, Frankfort, Benzie County -- A $21.6 million capital investment will be undertaken to expand Graceland’s fruit processing plant on Forrester Road in Frankfort. Graceland is the pioneer for America’s infused dried fruit industry. The APRZ approval of this processing plant expansion will increase the market opportunities for the Michigan cherry, blueberry, apple, carrot, peach and other specialty crop industries along with the sugar industry. The proposed expansion would create 45 new jobs by December 31, 2007, and a minimum of 75 new jobs by the close of 2017. Various potential business partners are being approached for value-added agriculture joint ventures, including Ocean Spray Cranberries, Inc.
  2. New Era Canning Company, New Era, Oceana County --  A $5 million capital investment will be undertaken to expand New Era’s existing processing and canning plant in New Era, to process new products and introduce new packaging for its current business lines. The expansion will create at least 40 new full-time jobs. The company presently processes over 70 canned fruit and vegetable products from Michigan farms, making canned green beans, wax beans, pumpkin, asparagus, applesauce, sliced apples, carrots, and many types of dry edible beans. The APRZ designation will also facilitate the upgrade and expansion of New Era Canning Company’s wastewater treatment system as part of the new investment, in order to accommodate the business growth and to be in compliance with Michigan Department of Environmental Quality water and wastewater requirements.
  3. SubTerra, LLC, Carp Lake Township, Ontonagon County -- A $22 million capital investment will be undertaken to reuse a portion of the abandoned White Pine copper mine in Michigan’s Upper Peninsula, generating at least 200 new jobs over the 15-year Agricultural Processing Renaissance Zone period. Within the first three years, about one-half of the investment will go into an underground greenhouse project, with the remaining investment going towards a biopharmaceutical processing facility. This project will develop an accelerated agricultural plants growth chamber, which provides one of the nation’s most strict, state-of-the-art biological and industrial-security environments. This unique agricultural development will vastly Cexpand SubTerra’s current pilot plant into an advanced biotechnology plant research and commercial biopharmaceutical processing facility that provides contract growing services for high-value, genetically modified crops, and bio-processing and protein extraction services. This is a highly regulated facility, being permitted by both state and federal governments. With today’s technological advancements, the new medicines being developed at SubTerra to fight various forms of cancer, Alzheimer and Parkinson’s diseases, are complex therapeutic proteins. These proteins can be engineered into agricultural plants, thus making the plants become mini-manufacturers of these new medicines. SubTerra uses Michigan crops, such as field corn, potatoes, and safflower, along with other crops, such as tobacco, to produce proteins with transgenic plants as production vehicles for the proteins and medicines.
  4. Sunrise Aquaculture, LLC, Hillman, Montmorency County -- A minimum of $6,250,000 capital investment for this "start-up" company will generate 30-31 employees in an Agricultural Processing Renaissance Zone that is also part of a Hillman Industrial Park in Northeast Michigan. This project is a Recirculating Aquaculture System (RAS) to raise and process yellow perch and other products. Both state and local governments support the designation of the Agricultural Processing Renaissance Zone in Hillman to facilitate needed economic and community development by Sunrise Aquaculture, LLC. Various business assistance services will be offered and provided to Sunrise by MDA, MSU, Michigan Farm Bureau, Michigan Economic Development Corporation and others, to aid in their successful business development and ensure they meet regulatory requirements.
  5. Zeeland Farm Services (ZFS), Zeeland, Ottawa County -- A minimum of $4 million capital investment for this expansion of Zeeland Farm Services’ soybean processing facility will help create a Soybean Oil Refinery/Bleaching Plant that will generate 30 new jobs in this Agricultural Processing Renaissance Zone. This value-added agriculture expansion will also help retain 35 jobs at the current ZFS soybean processing facility. ZFS plans to produce further-refined soybean oil that allows them to pursue more value-added markets, such as salad oils, cooking oils, and a possible step towards production of biofuels or soy diesel fuel blends.

Grand Opening and Tours of Michigan Ethanol Plant
Michigan Ethanol, LLC, finished construction in late October of 2002 their $60+ million corn processing/ethanol plant in Caro, Michigan. On October 28, Broin Enterprises hosted an official Michigan Ethanol, LLC, Plant Grand Opening, including dedication and tours, with several corn growers and industry, state and federal leaders in attendance. The plant site is in the industrial park of the city of Caro that is also a conventional Renaissance Zone. The 40-million gallon ethanol plant is one of the larger dry mill ethanol plants in the nation and is designed to easily double its capacity. This value-added agriculture facility is expected to consume over 15 million bushels of Michigan corn and make various by products. A key by-product from the plant is distiller’s dried grain, which is a mid-level protein feed supplement for livestock. A plant of this size will expand the local economic base by $110 million each year and add nearly $20 million in household income annually. The Caro ethanol plant will provide 41 direct jobs and support hundreds more throughout the regional economy.

According to the Federal Highway Administration, Michigan currently ranks in the top five states in ethanol consumption, using more than 80 million gallons on an annual basis. Producing the ethanol fuel in Michigan creates value-added agriculture investment opportunities and quality jobs in state while providing Michigan corn growers with a better price for their grain. The State provided a $4.8 million grant through MDA to Michigan Ethanol LLC for plant construction, and MEDC provided assistance for necessary infrastructure improvements. Both state and local governments provided approval for the plant to be built in a "Rural Renaissance Zone" in the industrial park of Caro, which provides total abatement of state and local taxes for 15 years. MDA staff facilitated the attraction of the Broin Company from South Dakota and has worked with Michigan Farmers and many other private/public partners to see this agricultural development finally take place after nearly two decades of efforts to facilitate the development of an ethanol manufacturing plant in Michigan.

During December 2002, the Michigan Corn Processors, LLC, conducted a stock offering campaign of corn grower private investment as farmer-owners of the Michigan Ethanol, LLC, plant. Their campaign was successful, and as of January 1, 2003, 135 Michigan corn growers invested a total of $4 million into Michigan Ethanol, LLC, representing nearly 30 percent of the stock of the company.


Tourism Based Marketing Opportunity for Specialty Food Products
MDA, in partnership with the Michigan Food Processors Association, will kick off "Take Home a Taste of Michigan" activities in March 2003. This project, funded by a grant from USDA’s Federal State Market Improvement Program, will assist in opening new market channels for Michigan specialty food processors.

This project will begin in the spring with a series of three tradeshows around the state: May 19, 2003, Frederick Meijer Gardens, in Grand Rapids; April 6, 2003, in conjunction with the Michigan Gift Mart show, Northville Downs, Northville; and April 28, 2003, at the Leelanau Sands Casino, in Suttons Bay. These trade shows offer a unique opportunity to exhibit specialty and gourmet foods directly to retailers based in the tourism industry. All exhibitors will be asked to offer a 10 percent discount on sales made at the show. A limited number of booths are available at each site.

The project continues into the summer with several activities centered on local community fine arts fairs. Specialty food retailers in communities that coordinate fine arts fairs will be invited to host a "Take Home a Taste of Michigan" event. Special incentives and assistance will be provided to retailers interested in featuring Michigan specialty food products during the art fairs and festivals.

For more information or to receive a participation agreement, contact Brian Preston at (517) 241-2678 or prestonb@michigan.gov.


International Marketing Web Site Gets New Look
MDA’s Agriculture Development (AgD) International Marketing web site www.mdainternational.com, has a new look. The new International Marketing Web site, will offer more information about marketing agriculture products worldwide, and various services provided by AgD. The web site also contains information about obtaining grants for international exporting and about the Branded Program’s 44 percent reimbursement for participating in international tradeshows and marketing in foreign countries. The web site will continue to offer a search engine for Michigan agricultural products and exporters. If your company would like to be added to this database as an international exporter, please call (517) 241-3628 or send an e-mail to zmitkoj@michigan.gov. If your company is currently listed in the international exporter database, please check the company information and contact us with any additions or corrections. The International Marketing web site will continue to offer updated trade leads for companies interested in exporting.

International Promotion Calendar

Date  Promotion  Place
April 2-4,  2003 SIAL Montreal Trade Show Montreal, Canada
May 4-6, 2003 Fancy Food Show Buyers Mission Chicago, IL
May 4-6, 2003 FMI Buyers Mission Chicago, IL
May 6-9, 2003 HOFEX Food & Drink Show FSP! Hong Kong
May 17-20, 2003 NRA Buyers Mission Chicago, IL
May 20-22, 2003 London Wine & Spirits Show London, England
June 1-3, 2003 Int. Dairy, Deli, & Bakery Buyers Las Vegas, NV
June 11-13, 2003 Exphotel Food Show FSP! Cancun, Mexico
June 29-July 1, 2003 Summer Fancy Food Show Buyers New York, NY
July 26-30, 2003 Institute of Food Technologist Buyers Chicago, IL
July 28, 2003 Nurseries Buyers Mission Ft. Washingon, PA
Aug. 1-3, 2003 Food Ingredients S. Am. FSP! Sao Paulo, Brazil
Aug. 15-18, 2003 SIAL Mercosur FSP! Rio de Janerio, Brazil
Oct. 11-14, 2003 NACS Show Buyers Mission Chicago, IL

 

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
Sustainable & Organic
Agriculture Coordinator
(517) 373-9800
lietzauc@michigan.gov

Sandy Hill
Commodity Coordinator
(517) 241-0194
hills9@michigan.gov

Paul Burke
Market Development
Manager
(517) 373-9710 
burkep@michigan.gov

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

Brian Preston
Market
Development
Specialist
(517) 241-2678 
prestonb@michigan.gov

www.mdainternational.com

  

 

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