By: Donald Koivisto, director, Michigan Department of Agriculture
The Michigan Department of Agriculture’s (MDA) International Marketing Program does more than just sell Michigan-grown products overseas. The program helps expand Michigan’s agriculture economic impact with exports generating $1.1 billion in 2006. According to USDA’s Economic Research Service, there were 13,800 agricultural export-related jobs in Michigan in 2006, that's up 1,000 jobs from just a few years ago. These figures are positive proof that agricultural exports help to grow the state’s second largest economic sector.
The state exports almost one-third of its 200 agricultural commodities, with the top five agricultural exports being soybeans, feed grains, vegetables, fruits, and dairy products. In 2006, Michigan inched out Kentucky for the 19th spot among the top 20 state agriculture exporters in the nation. Over 60 percent of all Michigan’s agricultural exports went to Canada, our number one export market. Rounding out the top five companies eager for Michigan-grown products were Mexico, Japan, Korea, and Germany. Forecasts are already speculating that exports are again going to be more than $1 billion in 2007.
There are numerous reasons Michigan companies should consider exporting, expecially since 95 percent of the world's consumers live outside of the United States. If a company only sells domestically, it is reaching just a small share of potential customers. Through exporting, companies can reduce dependence on existing domestic markets, offset slow sales due to economic changes, consumer demands, and seasonal fluctuations. In addition, exporting often helps enhance a company’s competititve advantage through new exposure to technologies, methods, and processes.
MDA’s international marketing program’s goal is to assist Michigan producers and processors develop trade opportunities by entering new markets or expanding existing markets to increase international sales. MDA staff organize and implement activities such as export seminars, buyers missions, trade missions, and Michigan Pavilions at selected domestic and international trade shows to showcase Michigan-based companies in a global arena.
MDA staff provide consulting services to food and agriculture firms such as market research, trade leads, advice on export pricing, order processing, determining required documentation, international market development policy issues, and identifying and overcoming barriers to market access.
The International Marketing Program helps Michigan companies tap a variety of federal export assistance programs, including the Branded Program through the Food Export Association of the Midwest USA. This program provides 44 percent reimbursement for marketing and promotional expenses incurred by companies and commodity groups to expand international and domestic sales.
An online export directory, including Michigan companies that export and trade leads, can be found at www.mdainternational.com. This Web site also includes a list of upcoming international marketing activities and highlights the Select Michigan Worldwide newsletter.
Companies interested in learning more about the International Marketing Program can contact Jamie Zmitko-Somers, International Marketing Manager, at phone at (517) 241-3628 or by email at zmitkoj@michigan.gov.