Michigan Department of
Agriculture
International Marketing Program
Jamie Zmitko-Somers
Acting International Marketing
Manager
2004 Top Michigan Food &
Agriculture Exports by Country
$135,733,672
$16,670,238
$36,489,252
$29,196,458
$36,489,252
$453,756,472
Canada
Japan
Korea
Mexico
China
Other
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
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Newsletter: Global Food Marketer
Educational Seminars
Food Export HelplineSM
Web Site, www.miatco.org
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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 Helpline
SM
Customized export assistance is just a phone call away!
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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
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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
Network of
In-Market Representatives
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Canada
Mexico
Mercosur
Japan
Korea
Greater China
Southeast Asia
India
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Caribbean
Central America
Germany
United Kingdom
France
Czech Republic &
Hungary
• China
Food Show PLUS!
SM
Make the most of overseas trade shows!
• Offered at approximately 12 international trade
shows per year.
• Cost is $200 and services usually include;
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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 Mission
Meet 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?
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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:
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TV, radio, billboards
Newspapers, magazines, trade journals
Flyers, direct mail
Brochures, pamphlets, sell sheets
Trade Shows
International & Approved Domestic
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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
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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
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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:
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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:
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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 preQualification” 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
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Go to www.brandedprogram.org
Log on with your username and password
Complete the application!
All fields with asterisks are required fields
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
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Transfer funds between country markets
Add new country markets
Add products
Add and agent or importer/distributor
Request additional funds (Additional 6% fee)
Reimbursement Process
How 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
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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
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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:
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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
Thank You
Contact Information
[email protected]
517-241-3628
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MIATCO Program and Services - Central Michigan University