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| Issue 1, 2003 |

In this Issue:
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:
- 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.
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.
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.
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.
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 |
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Issue 4, 2004 |
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Issue 2, 2003 |
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Issue 1, 2004 |
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Volume 3, 2002 |
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