Making export services work for you - agricultural exports

With the market for agricultural products maturing at home, U.S. producers who want to expand their horizons are turning to the global marketplace. In America, there are 250 million customers. How about a potential 6 billion more?

The Foreign Agricultural Service's (FAS) AgExport Services Division has a staff of experts that can guide you through the maze of rules and regulations. Their one-stop information center, the Trade Assistance and Promotion Orifice (TAPO), is a good place for both new and experienced agricultural exporters to begin their research.

TAPO can provide general trade counseling and information on USDA and other government agency programs. The TAPO specialists are not only familiar with Federal programs, but they also work closely with the National Association of State Departments of Agriculture (NASDA), state export offices and trade assistance organizations.

Can I Sell My Beans in Brazil?

Before U.S. exporters can decide on the market potential for their product, they need up-to-date information on market conditions. Reports generated by FAS' extensive attache network provide U.S. exporters with a competitive edge in the area of foreign market research. Check out the following:

* Country Market Overviews are updated annually; they cover over 60 foreign destinations. The reports include information on the local economy, retail structure and import distribution channels, competition, consumer attitudes for high-value foods, trade restrictions and market trends and opportunities.

* Market Brief Reports analyze specific products within a country or region. They include valuable information on trade and consumption trends, product competitors, labeling and/or packaging requirements, potential trade barriers and foreign contacts or buyers for high-value U.S. food products.

* Country Sector Reports focus on general or specific market sectors and consumer behavior.

* Import Regulations and Country Labeling Requirements provide updates or overviews on these topics for each country.

Other FAS publications provide information on the world marketplace:

* FAS Circulars provide U.S. and world production and trade data for specific agricultural products, highlighting key international market developments by commodity.

* AgExporter, your monthly magazine for agricultural exporters, focuses on export market opportunities and promotional activities.

* Agricultural Trade Highlights, a monthly news bulletin, provides overviews of recent developments and trends in U.S. agricultural trade.

FAS Online: http://www.fas.usda.gov

Virtually every market, country and commodity report published by FAS is available immediately online. Check out the FAS homepage, which offers a listing of overseas posts, many with direct links; lists of commodity specialists, current publications and archival material; export counseling services; information on FAS export programs, food aid, technical assistance and import regulations; and the latest on trade policy activities.

How Can I Find Foreign Buyers?

FAS' AgExport Connections office (next door to TAPO) has several programs designed to match sellers with foreign buyers. The Trade Leads program advertises actual foreign inquiries for food and agricultural products every week, providing an estimated 4,000 leads yearly.

The orifice also identifies new buyers and distributors through the Buyer Alert program. Distributed bi-weekly in several languages through FAS' overseas offices, the newsletter introduces U.S. food, farm and forest products to buyers worldwide, reaching more than 15,000 importers in nearly 60 countries. Each announcement gives a product description and offers contract terms and a brief profile on each featured U.S. exporter.

AgExport Connections also maintains databases of Foreign Buyer Lists and U.S. Supplier Lists. The buyer list contains entries for 15,000 foreign buyers in 70 countries. Information for each buyer includes contact, address, telephone, fax and type of products imported. The supplier database contains information on 6,000 U.S. agricultural exporters and includes a contact, the company's annual sales and how long it's been in business.

How Can I Meet These Buyers?

Many U.S. exporters, looking for the most cost-effective way to make foreign contacts, test new products, evaluate new markets and assess foreign markets, have discovered the trade show circuit.

The FAS trade show office and overseas offices organize pavilions at major international trade food and beverage shows to highlight U.S. products. Services include booths, publicity, market research relevant to the show, guidance on shipment of product samples and help with customs clearance. For domestic trade shows, the trade show office often coordinates with state agencies and trade associations to help U.S. exporters.

Who Can Help Me Market Products?

FAS' Market Access Program (MAP) provides matching funds for long-term market development activities sponsored by nonprofit trade associations. The $90 million financed in fiscal 1997 helped provide consumer promotions, market research, technical assistance and trade servicing.

The Foreign Market Development Program (FMD) expended over $31 million in fiscal 1997 to help exporters represented by nonprofit commodity or trade cooperator groups develop, maintain and expand export markets.

The Export Credit Guarantee Program (GSM-102 and 103) underwrites short-term and long-term financing for buyers overseas. More information is available from the program's homepage: http://www.fas.usda.gov/excredits/exp-cred-guar.html

The Supplier Credit Guarantee Program (SCGP) guarantees a portion of the credit extended by exporters directly to their foreign buyers. Program details can be found at: http://www.fas.usda.gov/excredits/scgp.html

The Facility Guarantee Program has a new slant. It provides payment guarantees to help finance the U.S. goods and services needed to develop agricultural facilities in emerging markets. These facilities, in turn, improve market access for U.S. exporters. More information can be found on the following homepage: http://www.fas.usda.gov/excredits/facility.html

I've Heard About Certifications...

Most countries require a sanitary certification that ensures that the imported plant or animal product meets certain health and quality standards. USDA's Animal and Plant Health Inspection Service (APHIS) provides this inspection for plants. USDA's Food Safety and Inspection Service (FSIS) conducts inspections for meat and poultry products. USDA's Federal Grain Inspection Service (FGIS) manages a grading program and inspections for U.S. grains.

The U.S. Department of Commerce manages the fish and seafood inspection program, while the U.S. Department of Treasury's Bureau of Alcohol,Tobacco and Firearms (ATF) registers exporters of alcoholic beverages.

And There's More...

FAS' International Trade Policy office monitors foreign government actions that affect U.S. food and agricultural products, keeping track of tariffs (tax on imported goods), quotas (fixed import quantities allowed at certain duty rates) and licenses (permit systems often used to administer quotas).

Proper food labeling serves a dual function, ensuring entry into the overseas markets as well as marketing the product. The TAPO office has many country reports that focus on these requirements. FAS is also compiling a database of foreign labeling and packaging requirements by country.

There are many other requirements about food additives, maximum pesticide residue tolerance levels, mandatory sanitary procedures for processing facilities, voluntary food quality certifications and different grade standards. Specialists from the Food Safety and Technical Services orifice can guide your inquiry: Tel.: (202) 720-9408; Fax: (202) 690-0677.

If you're worried about shipping your product, two USDA agencies can help: AMS' Shipper and Export Assistance Program provides guidance and publications to help handle problems with perishables (Tel.: (202) 690-1304; Fax: (202) 690-1340); and USDA's Agricultural Research Service also counsels exporters and provides research studies and information on product selection, packaging, storage and refrigeration methods, shipping and safety procedures for products: Tel.: (301) 344-2340; Fax: (301) 344-2325.

For companies needing information on export documentation, two sources can provide help: a freight forwarder or shipping company and AMS.

Mark Smith is an agricultural marketing specialist with FA S' Trade Assistance and Promotion Office. Tel.: (202) 720-1420; Fax: (202) 205-9728; E-mail: [email protected].

COPYRIGHT 1998 U.S. Department of Agriculture
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