international update· company has been in business a minimum of one year · be new to exporting or...
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INTERNATIONAL UPDATE
IOWA ECONOMIC DEVELOPMENT AUTHORITY — INTERNATIONAL NEWSLETTER WINTER 2019
NEWS YOU CAN USEGrant for International Marketing AvailableThe Iowa Economic Development Authority’s (IEDA) International Trade Office has grants available through the Market Trade Assistance Program (MTAP). Eligible Iowa companies may receive a MTAP grant, up to $5,000 total, for qualified expenses:
1. Website translation into a foreign language, search engine optimization and localization (reimbursement 75 percent, up to $3,000)
2. Design, translation and localization of a brochure or social media platform in a foreign language (reimbursement 75 percent, up to $3,000)
3. Compliance testing by a third-party on an existing product for entry into an export market (reimbursement 75 percent, up to $3,000)
Does my company qualify?
Companies must answer “Yes” to all the following:
· For-profit company operating a facility in Iowa to process, manufacture, add value to a product and/or distribute a product or provide an exportable service
· Must be export-ready and seeking to export goods or services of U.S. origin or have at least 51 percent U.S. content
· Meets SBA guidelines of “Small Business Concern” – www.sba.gov/size-standards
· Not debarred, suspended, etc. from participation in programs by any federal or state agency
· Company has been in business a minimum of one year
· Be new to exporting or focusing on a new international market or have a new product to promote to the international market
· Current on all past grant requirements
Does my project fit as being MTAP eligible?
· Project must fit into one of the above 1-3 specific qualified expenses
· Have a selected quote from a third-party, but may not have started the project or made financial commitment to third-party
· Project completion by September 29, 2019
How do I apply?
Instructions available: iowaeconomicdevelopment.com/userdocs/programs/IntlAppInstructions.pdf
For more information about International Financial Assistance, visit iowaeconomicdevelopment.com/IFA or contact Lisa Longman at [email protected] or 515.348.6243
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SAVE THE DATESAGRO 2019 June 6 – 9, 2019AGRO www.agro-expo.com is the largest agricultural exhibition of the CIS and Eastern Europe and the leading Ukrainian trade fair for agricultural machinery, animal farming, renewable and alternative energy and organic farming. The organizer of AGRO is the Ministry of Agrarian Policy and Food of Ukraine. Both indoor and outdoor space is planned for the U.S. Pavilion in 2019 and details should be available soon. Contact Peggy Kerr at [email protected] or 515.348.6242 to stay informed of the potential Iowa pavilion.
UPCOMING EVENTSWorldwide Demand for Pet Food GrowingU.S. exports of dog and cat food packaged for retail set yet another record high in 2017 reaching over $1.373 billion and growth of five percent over 2016. Through September of 2018 (the latest available data), U.S. exports of the products has grown an impressive nine percent on a year-to-date (YTD) basis and reached nearly $1.091 billion. These products remain one of the strongest export categories in processed food exports from the U.S. Based on USDA economic projections, this accounts for nearly 13,455 American manufacturing and related industry jobs – for purely exporting and merely for dog and cat food for retail!
Exports of these products has grown 32 percent in the last decade, led by incredible growth rates like Canada at 50 percent, Australia at 79 percent, Hong Kong at 243 percent, South Korea at 150 percent and Colombia at a whopping 1,212 percent. Most of that growth came after the U.S.-Colombia Trade Promotion Agreement (CTPA) trade agreement, which became effective in 2012, and began lowering duties up to 25 percent per year until 2016 when the products became free from duty, if out of quota. The U.S. has a free trade agreement (FTA) with all these markets.
It is also important to consider the pet food export data in sheer terms of volume. In 2017, nearly 1.5 billion pounds was exported, which is a lot of dog and cat food being exported from the U.S. Exporters might claim this success is a lot to bark about!
Food Export – Midwest is a partner helping grow U.S. exports. They will offer numerous opportunities in 2019 to connect with qualified international buyers of pet food. Upcoming events include:
Pet Food Buyers Mission at the 2019 Global Pet Expo – Orlando, Florida March 19, 2019 This mission will feature approximately 10 international buyers seeking U.S. dog and cat food, dog and cat treats, bird food, animal supplements and other pet food products.
Pet Food Ingredient Buyers Mission at 2019 Pet Food Forum – Kansas City, Missouri May 1, 2019 This mission will feature approximately eight international buyers seeking ingredients to be used for dog and cat food and other animal food products.
For more information, contact Mark Fischer of the International Trade Office at [email protected] or 515.348.6241.
Find More Events at iowaeconomicdevelopment.com/intlevents and Educational Opportunities at iowaeconomicdevelopment.com/intlcalendar
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UPCOMING EVENTS, CONTINUEDSIAL CANADA – Toronto April 30 – May 2, 2019 You’re invited to exhibit in an Iowa/USA Pavilion at North America’s premier trade show in Toronto for the food industry. Each year, SIAL Canada brings together all the industry’s major players under one roof. The opportunity to participate with North American and international exhibitors and buyers, but also to take part in events and conferences, will allow attendees to discover the industry’s latest trends and innovations. SIAL Canada is North America’s biggest food tradeshow of any type, bringing together up-and-coming brands, as well as major leaders in the agri-food industry. The show offers a complete range of food products and of food-related equipment and technologies. These integrated offerings fulfill the needs of the retail, food service and food processing sectors. This incredible gathering will host over 18,000 buyers from Canada, the United States and 60 other countries; it will help make cross-border connections needed to compete in the global market. Iowa exhibitors receive support during the exhibition, discounted space, advance promotion and more. Contact Andrea Smith at [email protected] or 515.348.6240 for more information.
AGRITECHNICA November 10-16, 2019 An Iowa pavilion is planned at AGRITECHNICA in Hannover, Germany. AGRITECHNICA www.agritechnica.com/en/ is the world’s leading trade fair for agricultural technology. The Iowa pavilion will offer shared booth space for companies that don’t have the international marketing budget for a solo booth at this trade show and need assistance with exhibit space, logistics, etc. at an exhibition of this size. A detailed product index for this exhibition is available at www.agritechnica.com/fileadmin/downloads/2019/aussteller/AT2019_Nomenklatur.pdf. Contact Peggy Kerr at [email protected] or 515.348.6242 immediately if you’re interested in shared space at AGRITECHNICA, or if your company will exhibit in your own space.
RECENT HIGHLIGHTSIEDA Promotes International Export and Trade Seminars and EducationIt was a busy fall with a variety of Import, Export and Finance seminars presented by a team of industry experts and professionals and attended by international exporters from all over Iowa and the Midwest. The International Trade Office helped promote or sponsor the following events:
International Finance for Sales - September 19, 2018
Held at the Greater Des Moines Partnership and presented by Bankers Trust, Integrated Trade Finance, LLC, EX-IM Bank and others, topics included trade finance, credit insurance, retail finance and public finance. The group learned how to use finance with sales leads to better target marketing and better manage risk.
Import Training – October 11, 2018
A large group of international business professionals gathered to learn about import best practices, the import shipping process, U.S. Customs Regulations and more from presenters from Scarbrough University at the Greater Des Moines Partnership downtown.
Export Compliance & HTS/Schedule B Classification – November 7 & 8
The IEDA’s International Trade Office hosted Allocca Enterprises to offer two international training sessions in November. These were attended by professionals from over 50 Iowa companies – from roles including managers, finance, sales, customers service, shipping personnel, compliance officers and CEOs. These courses are for those involved in international sales or shipments. Mr. Mike Allocca has decades of expert experience and industry knowledge and presents high quality material in an entertaining environment.
Thanks to co-sponsors Center for Industrial Research and Service (CIRAS) and the Greater Des Moines Partnership. Their support allows IEDA to offer world-class training locally at economic rates, requiring minimal travel. The two days of intensive training provided Iowa exporters with many tools necessary to compete and succeed in the global marketplace.
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RECENT HIGHLIGHTS, CONTINUED
Mexican Grain Buyers — October 25, 2018Three Mexican grain buyers traveled to Iowa to learn more about the Iowa corn industry. The team was organized by the U.S. Grains Council and hosted by Iowa Corn. The IEDA and Iowa Corn hosted a “Meet the Buyers” dinner for Iowa suppliers. Four Iowa suppliers attended to learn more about the buyers’ needs and discuss the suppliers’ products and potential business. Mexico is the leading corn export market for Iowa companies.
FIGAP MEXICO, Guadalajara — October 24-26, 2018FIGAP is among Latin America’s leading events for the livestock industry, featuring participation by leading companies in areas such as livestock equipment, animal feed manufacturing machinery, animal health, nutrition, feed and seed bins, pet food, ingredient and additive distributors and more. This year’s show was held at the EXPO Center in Guadalajara, October 24-26, and featured approximately 240 exhibitors and attendees from over 50 countries. The IEDA International Trade Office and Iowa Mexico Office supported eight Iowa companies who exhibited and participated in this premier event. Iowa participants found the show useful in displaying their products and services, establishing new contacts and customers, and setting up international distributors for the Mexican markets. The show is held every two years and will be back in Guadalajara in October of 2020.
China Trade Mission — November 2-10, 2018The IEDA International Trade Office recently returned from a successful trade mission to China. IEDA’s ongoing efforts have created a strong framework for business-to-business matchmaking. Several Iowa food and agriculture machinery manufacturers, as well as business leaders, joined the trip to learn first-hand about China’s trade outlook and meet with qualified buyers. The Iowa companies participated in full itineraries of one-on-one meetings with prospective customers and came away with several important opportunities for new business in China. Mission participants said the on-going trade battle didn’t deter the relationship building between Iowa and China; in fact, China consumers are very open to U.S. made products and services. One of the participants mentioned this couldn’t have been a better time to highlight long-term relationships and valued friendships between China and Iowa. Businesses from both countries who are engaged in international commerce continue to pursue opportunities regardless of trade sanctions that arise in the negotiation process. China and Iowa businesses feel the impact of the tariff sanctions and are concerned about the stress this places on existing supply chain relationships. China is particularly sensitive to maintain access to safe and reliable trading sources to help feed its 1.4 billion people. Iowa’s sales of agricultural commodities to China have declined sharply, but Iowa manufactured and value-added exports to China have risen nine percent, year-to-date 2018, maintaining China’s position as Iowa’s fourth-largest export destination.
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RECENT HIGHLIGHTS, CONTINUED
Japan Korea Meat Mission — November 10-17, 2018IEDA International Trade Office organized a meat-focused trade mission to Japan and Korea November 10-17, 2018.
Some observations in Korea · U.S. beef exports to Korea are up 51 percent and
pork exports are up 48 percent YTD.
· Convenience store sales have increased 65 percent in the last four years and e-commerce is growing rapidly.
· Dr. Lee Schulz, Iowa State University, gave a presentation to more than 200 Korean buyers on U.S. meat supply.
Japan observations · Japan continues to be an important market for Iowa
meat companies.
· Tourism is booming in Japan. From 10 million visitors in 2013 to more than 30 million in 2018, and an expected 40 million by 2020 when Tokyo will host the Olympic Games.
· Another trend is senior citizens are eating more meat. Those in their 60’s and 70’s have increased meat consumption by more than 40 percent over the last decade.
· The “Niku” boom in Japan is a new concept of serving westernized steaks that consumers eat standing up. Reasonable prices have generated sales of $200 million.
IEDA cooperated with the U.S. Meat Export Federation in each country. The Iowa team met with government, meat processors, distributors, retailers and food service operators to identify more opportunities for Iowa pork and beef products.
GUEST ARTICLEThe China market – should you, or shouldn’t you?Submitted by the Iowa China Representative Office – Mr. John Clarke
It seems everywhere you look these days you see headlines related to the recent trade friction between the U.S. and China. There is no doubt this is causing near term pain for U.S. companies and agricultural producers, but is there a silver lining in those storm clouds?
Pressure from the U.S. is helping accelerate change in the Chinese marketplace in the near term. Subsequent to the meeting between the U.S. and Chinese delegations at the G-20 meeting in Argentina, China has agreed for a period of time to again purchase agricultural commodities, lower tariffs on automobiles and auto parts, lower tariffs across a wide range of goods, and to strengthen intellectual property rights protections. This is in addition to vowing to open previously restricted business sectors. This is positive news.
As the world’s second-largest economy and a large trading partner for the U.S., the China sales opportunity for your company is difficult to ignore. In addition, the Chinese market in general remains interested in quality products from the U.S. Particularly, food safety is a strong and growing issue with Chinese consumers. During an IEDA trade mission to China in early November, participating Iowa companies found a welcoming environment and great interest in quality products from the U.S.
With the recent developments in the U.S.- China trade relationship, including additional pressure for Chinese companies to seek trade opportunities with U.S. companies, and Iowa’s long-standing relationships with China, this may be an excellent time to explore the China opportunity. If your company would like to explore the sale of your products or services into the China market, consider contacting the IEDA for a consultation and an overview of services offered by its China office. Contact Joseph Rude at [email protected] or 515.348.6244 for more information.
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CONTACT INFORMATIONEUROPE, NORTHERN AFRICA & MIDDLE EAST Peggy Kerr, Team Leader +1.515.348.6242 | [email protected]
AMERICAS & SUB-SAHARAN AFRICA Andrea Smith, Marketing Manager +1.515.348.6240 | [email protected]
ASIA/PACIFIC Joseph Rude, Marketing Manager +1.515.348.6244 | [email protected]
AGRICULTURAL PRODUCTS - WORLDWIDE Mark Fischer, Marketing Manager +1.515.348.6241 | [email protected]
FINANCIAL ASSISTANCE Lisa Longman, Financial Assistance Administrator +1.515.348.6243 | [email protected]
IOWA ECONOMIC DEVELOPMENT AUTHORITY
200 East Grand Avenue Des Moines, IA 50309 USA
International: +1.515.348.6200 Domestic: 1.800.245.4692
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Wishing you Peace, Health and Happiness in the New Year, from the Iowa Economic Development Authority (IEDA)’s
Des Moines-based International Trade Office:
Peggy Kerr, Team Leader and Europe/Middle East/Northern Africa
Mark Fischer, Marketing Manager, Agricultural Products
Joseph Rude, Marketing Manager, Asia/Pacific
Andrea Smith, Marketing Manager, Americas and sub-Saharan Africa
Lisa Longman, Financial Assistance Administrator
And from the IEDA’s international office representatives and team members around the world:
Iowa European Office
China Representative – Phoenix Consulting, LLC
Mexico Representative – Business Development Partners, S.A. de C.V.
Southeast Asia Representative – Orrisa International Pte. Ltd.