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Michigan Department of Agriculture. International Marketing Program Jamie Zmitko-Somers Acting International Marketing Manager. 2004 Top Michigan Food & Agriculture Exports by Country. MDA International Marketing Resources. Web Site – www.mdainternational.com
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Michigan Department of Agriculture International Marketing Program Jamie Zmitko-Somers Acting International Marketing Manager
MDA International Marketing Resources • Web Site – www.mdainternational.com • Newsletter – The New Market Developer • Partnerships – MIATCO, MEDC, Commodity Groups • Funding – USDA Foreign Agriculture Service money through MIATCO
What is MIATCO? • Non-Profit Trade Association • Founded in 1969, based in Chicago • 12 Midwest state members • primarily departments of agriculture • MDA is a dues paying member • One of four “State Regional Trade Groups” • Partner with Foreign Agricultural Service (FAS) which is a division of the U.S.D.A.
The 4 Regional Trade Groups* *MIATCO and Food Export USA currently have a strategic alliance for the Midwest & Northeast states
Exporter Education and Training • Newsletter: Global Food Marketer • Educational Seminars • Food Export HelplineSM • Web Site, www.miatco.org • Export 101 • Events Calendar • Upcoming MIATCO activities/services • Resources and Links
Informational Resources • AgExportLinks www.agexportlinks.org • Export Service providers • FAS Web site www.fas.usda.gov • Market Reports • Contact Information • Programs and Services • Market Research Reports • Trade Leads
Food Export HelplineSM Customized export assistance is just a phone call away! • Top 25 export markets for your products • Secondary market research and reports • Finding and responding to trade leads • Locating potential overseas distributors • Explaining export documentation and correspondence • Payments and collections • Export shipping, packing and transportation
Market Builder • Market Scan • Store Check & Distribution Analysis • Competitive Product Shopping • Importation Analysis • Distributor Referrals • Target Importer List • Rep Finder • Distributor Referrals • Target Importer List • In-market Assistance • Market Scan - $400, Rep Finder - $500, or both packages $750
Canada Mexico Mercosur Japan Korea Greater China Southeast Asia India Caribbean Central America Germany United Kingdom France Czech Republic & Hungary China Network ofIn-Market Representatives
Food Show PLUS!SMMake the most of overseas trade shows! • Offered at approximately 12 international trade shows per year. • Cost is $200 and services usually include; • Pre-show research • Translation of company profile and product data • Interpreters at your booth • One-on-one meetings with targeted, invited buyers • Site visits, industry tours • Qualification of leads at the show • Follow-up letter to leads in local language
Buyers MissionMeet Pre-qualified Buyers • MIATCO invites buyers to the U.S. to meet with Midwest food and ag companies • One-on-one meetings with pre-qualified buyers • Receive feedback on your product • Establish new contacts with long-term sales potential • Often in conjunction with trade shows - i.e. FMI, Fancy Food Shows, NRA, Natural Products Expo East & West
Branded Program • Branded Program Overview • Program Requirements • Eligible/Ineligible Expenses • Pre-qualification and application process • How to get reimbursed • Required documentation
Branded Program Overview • Cost share assistance for brand products in foreign markets • 50% cost reimbursement of eligible expenses • U.S. Food & agricultural products only • Application from a U.S. Company • Small companies only (<500 employees) • Products not covered by another industry group
Requirements of the Program • All products minimum 50% U.S. Agricultural origin • All products promoted as “made in USA” • Activities approved in advance • Company incurs all expenses up front • Funds released on a reimbursement basis, subject to documentation • Importer/distributor expenses also eligible • Cleaned, sorted and bagged = Branded
Other Details: • Maximum request is $250,000 – minimum request is $2,500 • $200 application fee • non-refundable • 6% administrative fee • non-refundable • based on approved allocation
Other Details: • Expenses incurred before approval are NOT eligible (except for pre-payment of booth/travel expenses) • Five year country limit (additional 5yrs for specific shows)
What Are Eligible Expenses? • Advertisements and publications • International trade shows (incl. Limited travel costs) • Promotions & demonstrations • Public relations and seminars • Freight costs for samples • Package and label changes • Certain domestic trade shows
Ads and Publications • Production and placement of: • TV, radio, billboards • Newspapers, magazines, trade journals • Flyers, direct mail • Brochures, pamphlets, sell sheets
Trade ShowsInternational & Approved Domestic • Booth costs • Rented equipment, chairs, tables, lights, etc • Freight costs • Temporary signage • Interpreters/Translators • Giveaway Items (up to $1/item) • Must exhibit in USA pavilion unless prior approval is granted Some travel costs are reimbursable…
Certain Travel Costs • International shows only (outside the US) • Up to 2 travelers (company employees) • Must exhibit at the show • Roundtrip coach airfare on US flag carrier • Federal per diem rate for hotel and meals-- for 2 days before the show, show days and 1 day after. • Must have a country marketing plan in application
Promotions and Demonstrations • In-store and food service promotions • End-of-aisle displays • Shipment of samples • Temporary displays • Posters, banners, shelf talkers • Giveaways, awards, prizes, gifts (up to $1/item) • Demos to the trade and consumers
Public Relations and Seminars • Production & distribution of: • Press releases • Press kits • International trade seminars • Site rental • Equipment rental • Duplication of seminar materials • No travel, catering, attendance fees
Label Modifications • Eligibility requirements: • When REQUIRED by importing country • Changes to existing packages, NOT for new products • Must show original and modified label • U.S. Origin statement • Eligible expenses include: • Design costs (for required changes only) • Translation costs • Production/printing costs (one year supply only) • Labor to attach stickers (if done by outside vendor)
Domestic Trade Shows • Shows selected by FAS • List of pre-approved shows in manual • Must NOT have exhibited in last 3 years • NO travel expenses • Promote made in USA, grown in USA or some variation • Covered costs • Same as for intl. Trade shows, but NO travel reimbursement
Branded Program Application On-Line Application Located at: www.brandedprogram.org
Program Year General Information • Program year runs from October 1st to September 30th • All expenses must be concluded & paid for prior to October 31st • Final deadline for reimbursement requests is November 30th • Company evaluations are due November 30th The New 2005-06 Program year began Oct. 2005
Step One - Pre-qualify 1. Go to www.brandedprogram.org 2. Click on the link that says “create pre- Qualification” if you are a new company 3. If you are a past participant, login in with your user id and password to start your pre-qual
Step One - Pre-qualify 4. Follow the instructions on the forms and click Submit 5. Once submitted and approved by MIATCO, you will receive an e-mail reply 6. This will contain your username and password so that you can begin your application 7. A manual will be mailed for your reference
Step Two - Apply 1. Go to www.brandedprogram.org 2. Log on with your username and password 3. Complete the application! 4. All fields with asterisks are required fields 5. The display at the left shows you your progress
Step Two - Apply A complete application consists of: • an application summary AND either a • Domestic Trade Show Plan and/or • A Country Marketing Plan
Step Three - Submit Application Once you have completed your application there are a few more simple steps to follow: 1. Print and sign the certification form 2. Mail: • The certification form • A check for $200 application fee • Sample copies of your labels
Private Label & Exclusivity Agreements • Needed if you are promoting brands you do not own • Exclusivity for the purpose of applying for funds • Original signatures required
Approvals • Once approved MIATCO will mail to you: • Approval letter • Contract agreements (2 copies) • Invoice for 6% administration fee • Signatures on agreements and payment of fee is due in 30 days • Only then can reimbursement begin
Amendment Requests • You can amend your original agreement online by logging in with your user id and password • Transfer funds between country markets • Add new country markets • Add products • Add and agent or importer/distributor • Request additional funds (Additional 6% fee)
Reimbursement ProcessHow to submit proper requests for reimbursement!
General Reimbursement Claims • Forms can be submitted on-line! • Go to www.brandedprogram.org • Login with user id and password • Click on reimbursements to begin • Filed within 60 days of activity • Normally processed in 10-30 days • November 30 deadline • Delays can occur if submitted late in the year • Incomplete documentation causes delays
Claims Documentation • Proof of USA (MUST promote US origin) • Invoice (what you paid for...) • Proof of payment (how you paid...) • Proof of activity (what you did...) • English translation and foreign currency exchange rate at time of payment
Proof of USA(USA Origin Statements) • Make sure that ALL ads, promotional items and printed materials have a visible US origin statement • Have a sign or placard with US origin statement at ALL shows, demonstrations, tasting, in-store displays, etc • Made in, product of, grown in
Invoice • Make sure your invoice is detailed • If the invoice is in a foreign language, make sure to have the following information translated: • Vendor name • Date • Activities being charged for
Proof of Payment • Cancelled check • Credit card statement • Bank statement • Wire transfer confirmation • Receipt (depending on the circumstance) • Credit memo (must show the realization)
Proof of Activity • Trade show • Photo of booth and/or listing in trade show directory • In-store demo • Representative photos of demonstration and/or demonstration reports • List of stores and dates where demos took place
Proof of Activity (Cont’d) • Give-away items • Photo or sample of give-away item. Must have USA origin statement visible • Advertisements • Copy of ad (magazine, video tape, cassette tape, photo of billboard, etc.) • If in foreign language, please provide translation
Documentation Required for Travel Reimbursement • FAS post notification sent before travel • Trip report • Invoice from hotel • Photo of trade show booth (with visible US origin statement!)
Documentation Required for Airfare Reimbursement • Ticket receipt (back piece of ticket) • E-Tickets are accepted, must provide receipt • Invoice from travel agent • Itinerary • Proof of payment (credit card statement or cancelled check)
Documentation Required for Lodging and M&IE • Invoice from hotel (showing per night charges) • Proof of payment • M&IE is based on federal per diem rate and number of days eligible, individual receipts are not necessary!
Costs That Are NOT Eligible: • Salaries, meals, contractors • Product development costs • Product costs, slotting fees, price incentives • Capital expenditures • Market research • Normal administrative “costs of doing business”
FMI 2006 • May 7-9, 2006 • Largest retail show in the U.S. • 19 booths in Michigan Pavilion • Michigan Farm Bureau & MDA Bus Trip • May 8th
Export Training Seminar • March 28, 2006 • Dennis Lynch, Food Export Helpline, MIATCO • VanAndel Global Trade Center, Grand Rapids