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The New Market Developer Issue 3, 2008

Issue 3, 2008
In this Issue:


Midwest Buyers' Mission Comes to Michigan

A conference.On July 23, 2008 twenty international buyers from Brazil, Canada, China, Colombia, Dominican Republic, El Salvador, India, Japan, Korea, Mexico, Philippines, Taiwan, Thailand, United Arab Emirates, and Vietnam traveled to East Lansing for one-on-one meetings with Michigan companies. 

The buyers were able to see American retail trends by participating in store tours while in Michigan.  The buyers toured major retail outlets in the Detroit area, which included a new Wal-Mart Supercenter, Papa Joe’s, Kroger, and Costco before arriving in East Lansing to prepare for their meetings.

Two Dudes talking over honey
Chris Olney from Honey Tree meeting with a buyer during the Midwest Buyers Mission

Twelve Michigan companies participated in the Midwest Buyers Mission, including: Burnette Foods, Fido Enterprises, Lesley Elizabeth, Honeytree, Inc., Coffee Express, Koeze Co., Quality Food Brands, Shoreline Fruit Growers, Groeb Farms, Cadillac Coffee, Great Lakes Gourmet, and Dearborn Sausage.

The Michigan companies reported anticipated new export sales of over $200,000 during the next 6-12 months from the one-on-one meetings.

  The international buyers also traveled to Chicago and Milwaukee for additional one-on-one meetings with U.S. companies.  For more information, on buyers mission in 2009, please contact Jamie Zmitko-Somers at 517-241-3628 or zmitkoj@michigan.gov.

Learn About Export Opportunities in the Canadian Market

On November 7, 2008, the Michigan Department of Agriculture’s International Marketing Program, in conjunction with Food Export Association-Midwest, will host a seminar on exporting to the Canadian marketing and general exporting information.  The seminar will have two sessions. The morning segment will feature Food Export Association’s in-market representative from Canada, Kathy Boyce, and will focus primarily on opportunities in the Canadian market. The afternoon session will have a more general overview of the exporting including financing and payments.

Many opportunities exist for U.S. food suppliers seeking to enter the Canadian marketplace. Canada is the United State’s primary trading partner due to close geographical proximity, similar consumer tastes and expectations, and the North American Free Trade Agreement (NAFTA). In fact, Michigan exported nearly $650,000,000 in food and agricultural products to Canada in 2007.

The seminar will be beneficial to experienced or novice exporters. Experts will be present for one-on-one meetings with companies, as well as to answer specific questions about payment, distribution, and other aspects of exporting.

The seminar will take place in East Lansing at the Kellogg Hotel and Conference Center from 9:00 am – 4:30 pm.  Companies may choose to attend the morning, afternoon, or both sessions.  The cost to attend morning, afternoon, or both sessions is $30 per person.

To register for the event or if you have questions contact Jamie Zmitko-Somers at (517) 241-3628 or zmitkoj@michigan.gov.

Michigan Pavilion at the 2009 National Restaurant Show

The American Food Fair Showcase will take place May 16-19, 2009, at the McCormick Place in Chicago, IL, in conjunction with the National Restaurant Show (NRA).

The 2008 NRA Show had an attendance of over 50,000 with a record 4,800 of those being international attendees. 

The cost of a 10x10 booth in the Michigan pavilion is $2,850.00, with payment due January 30, 2009.  MDA will offer a Discount for companies submitting an application and paying for booth spaces by December 19, 2008.  Booth spaces paid for by Dec. 19 will receive a $400 discount and only pay $2,450 for a 10x10 booth. 

For more information please contact Jamie Zmitko-Somers at (517) 241-3628 or zmitkoj@michigan.gov.  A map of the Michigan Pavilion and an application is available at www.mdainternational.com.


Michigan Wine & Spirits Competition

Congratulations to all wineries that entered the competition! On August 7, the trophy presentation and reception at the Kellogg Hotel and Conference Center was attended by nearly 300 people, who enjoyed fine wine and food pairings, and the opportunity to congratulate the winery representatives in attendance.
The top award-winners are:

  • Best of Class Dry White: Chateau Fontaine - 2007 White Riesling
  • Best of Class Dry Red: Longview - 2007 Rustic Red
  • Best of Class Semi-Dry White: St. Julian - 2007 Braganini Reserve Traminette
  • Best of Class Dessert Wine: Brys Estate Vineyard and Winery - 2007 "Dry Ice" Ice Wine
  • Best of Class Fruit Wine: Mackinaw Trail Winery - Razz Berry

The complete news release is posted on the Michigan Grape and Wine Council's website. Or read the complete list of medal winners here as a PDF.

st julian winery
From left: Linda Jones, Michigan Grape & Wine Industry Council; Chris Cook, Competition Superintendent; Angela Braganini, David Braganini, Dr. David Miller, St. Julian Wine Company; MDA Director Don Koivisto.


From left: Linda Jones, Michigan Grape & Wine Industry Council; Ralph Stabile, Laura Stabile, Mackinaw Trail Winery; Chris Cook, Competition Superintendent; MDA Director Don Koivisto.


From left: Linda Jones, Michigan Grape & Wine Industry Council; Chris Cook, Competition Superintendent; Spencer Stegenga, Bowers Harbor Vineyards; MDA Director Don Koivisto.


From left: Linda Jones, Michigan Grape & Wine Industry Council; Chris Cook, Competition Superintendent; Eileen Brys, Walter Brys, Coenraad Stassen, Brys Estate Vineyard & Winery; MDA Director Don Koivisto.


From left: Linda Jones, Michigan Grape & Wine Industry Council; Chris Cook, Competition Superintendent; Alan Eaker, Longview Winery; Winemaker Shawn Walters; MDA Director Don Koivisto.


From left: Linda Jones, Michigan Grape & Wine Industry Council; Chris Cook, Competition Superintendent; Winemaker Shawn Walters; Dan Matthies, Chateau Fontaine; MDA Director Don Koivisto.


Staff changes in the Grape and Wine Program

Sherri  Goodreau Joins Council Staff

Sherri started her new job as a part time Communications Assistant for the Grape and Wine Industry Council on August 11.  She previously worked for the Michigan Department of Agriculture in the Pesticide and Plant Pest Management Division.  Sherri hails from the western Upper Peninsula and has resided in the Lansing area for the past 6 years, raising two daughters and several horses.  Sherri’s primary responsibilities will include distribution of magazines, point of sale materials, start-up guides and Vintage Michigan membership material.  In addition, she is already performing routine updates to the Council’s website and will play an important role in the 2009 Annual Meeting and the Wine Competition.    Sherri is enjoying learning about the Michigan wine industry and looks forward to meeting members of the industry at events in the coming months.  Her telephone number is 517 241-3415 and email is goodreaus@michigan.gov.  We welcome Sherri to the Council staff.

Karel Bush Adds New Responsibilities

Sherri’s hiring in August completes the staffing re-organization that the Wine Council has worked on for many months, following the announcement by David Creighton of his retirement in March 2008.  Karel Bush was selected to assume many of David’s previous responsibilities in media relations and event support as a Promotion Specialist.  Karel retains the more senior responsibilities from her previous position, which include coordination of the production of Michigan Wine Country magazine, management of the website, the Vintage Michigan program and a key role in the annual wine competition.   Karel has worked with the Council since 2001, steadily learning about the industry and developing her skills to be ready to take on the role of Promotional Specialist.  Karel's telephone number is 517 241-4468 and her email address is bushk9@michigan.gov  Congratulations Karel, on your new job title and responsibilities!

Ag Innovation (Julian-Stille) Grantee Success Stories

Paradigm Viticulture Services LLC, in Lawton, proposed developing and launching a vineyard management company in Southwest Michigan. They have purchased equipment and are currently managing two newly planted vineyards and two older vineyards for the 2008 growing season. One of the new customers is Mountain Road LLC which was formed because of Paradigm Viticulture Services.  Paradigm is actively consulting for wine grape growers, potential land buyers and land owners who wish to plant wine grape vineyards but do not want to “work the fields themselves.”  This viticulture management concept will be very important in attracting new investment in wine grape vineyards here in Michigan.  In addition to new operators Paradigm has had several existing wineries that indicated a willingness to expand their operation if they can obtain consistently high quality fruit.  Total new capital Investment is $123,757.

Walters Gardens Inc, located in Zeeland, developed an alternative energy heat source for part of their greenhouses while meeting MDEQ air quality emissions standards.  Walters tested many different fuel sources to burn in a boiler such as corn, coal, oat-hulls, cherry pits, wood pellets and combat ions of these fuels types.  Testing showed that wood pellets were the best source of energy.  Through the research that Walters Gardens and Decker Manufacturing Ltd completed they have designed and installed a waste heat boiler that will burn the same amount of fuel but get more BTU’s from wood pellets and will also reduce their emissions.  Total new capital Investment is $108,550.
 
Cerise Nutraceuticals LLC, in Traverse City, completed new scientific research and development of cherry product ingredients and have a competitive edge over other fruits. Their research was completed by Gary Dunbar PhD, professor of psychology and director of the Neuroscience program and Justin D. Oh-Lee PhD, associate professor of psychology and director of the Applied Experimental Psychology Program at Central Michigan University.  The study indicated that using Cerise Nutraceuticals has a potential for reducing the major effects of Parkinson’s, Alzheimer’s and Huntington’s diseases. The company plans to develop and launch a full line of natural health care products using Michigan red tart cherries.  Total new capital Investment is $108,525.

Oceana Foods Inc, in Shelby, updated and modernized their wastewater treatment system in order to comply with the Michigan Department of Environmental Quality permit standards.  Their system is an anaerobic digester with an activated sludge treatment tank.  Oceana Foods have also reduced their wastewater volume and the volume of waste solids generated in the processing of the wastewater.  The new wastewater treatment system will capture the energy generated from the system and will use the bio-gas to heat the building and the process tanks, which will reduce the costs of operating this system. This project was also important because it validated that a smaller scale system can and is a possible option. This new system will allow Oceana Foods to remain competitive and to continue to be a major employer in West Central Michigan and a high volume purchaser and processor of Michigan agricultural products.
They have created 3 new jobs and have total new capital Investment of $1,332,271.

Mite Zapper LLC, in Detroit, developed and tested a prototype device to treat Varroa mite infestations in honeybee’s hives.  The Mite Zapper is a device that combines mite biology with simple physics to treat the Varroa mites. This device can be used any time of the year and under any weather conditions.  The Mite Zapper is a circuit board built in to a plastic drone (male) bee frame that is installed into the hive instead of a regular drone frame.  After the bees seal the drone comb cells, the beekeeper connects the terminal on the device outside of the hive to a 12 volt battery for up to 10 minutes.  Electricity produces enough heat to kill both the drone pupae and the Varroa mites.  Bees then open the capped brood cells and remove the dead brood.  The drone comb is then ready for the queen to lay new eggs after 3-5 days.  The system is safe, quick, easy, and no chemicals are used in this process. This method is a major improvement over existing treatments available for Varroa mites.  The Mite Zapper frame and control box will last for 10 years.  Total new capital Investment is $154,662.

Sietsema Farms Feeds,
in Allendale, is building a biomass facility to generate renewable energy. This project will be a combined heat and power (CHP) system proving the equivalent energy of 8,463 barrels of oil per year.  The biomass facility, including feedstock receiving and storage will be completely housed in a new closed building. The project, which is estimated to cost about $2.6 million dollars, will boost Michigan’s economy by involving five other Michigan companies for the construction of a facility to convert turkey litter to steam and electric energy for feed production at the Sietsema Farms Feeds mill.  Heat Transfer International of Dutton is fabricating the gasification system; Williams International of Walled Lake will provide an air turbine electricity generator; Johnson Boilers of Ferrysburg will supply a waste heat boiler; Newkirk Electric of Muskegon is engineering the connection to Great Lakes Energy; and TopLine Equipment of Zeeland will install the feedstock handling equipment.  Sietsema has created two new jobs and total new capital Investment is $2,600,000.

Granholm Applauds Renewable Energy Package

Historic agreement will create jobs; ensure clean, affordable energy for Michigan consumers

Governor Jennifer M. Granholm applauded the passage of a bipartisan energy package she proposed in her 2008 State of the State address that will create jobs, diversify Michigan's economy, and save customers money on their electric bills by ensuring that the bulk of Michigan's future energy needs are met by renewable energy resources and energy efficiency savings.

Granholm said she will sign the package into law as soon as it reaches her desk, which she did in early October.

"This legislation will spark the investment in alternative energy we need to create jobs and diversify our economy," Granholm said today. "It will also ensure that the energy we need to heat our homes and power our businesses will be clean and affordable for generations to come."

The package includes a renewable portfolio standard (RPS) that mandates 10 percent of the state's energy come from renewable sources by 2015, regulatory reform that protects Michigan ratepayers and allows utility companies to build new electricity generation in Michigan, and a requirement that utilities meet an additional 5.5 percent of Michigan's annual electricity demands through energy efficiency by 2015.

Granholm noted the energy package will protect Michigan ratepayers' money by ensuring that the use of renewable energy and energy efficiency technologies will save more money than they cost. This energy efficiency requirement is projected to save consumers and businesses $1.04 billion a year by 2025.

The package includes an income tax credit to offset a portion of ratepayers' investments in renewable energy for Michigan and a "net metering" law that will allow customers to sell renewable electricity they produce at their homes or businesses to their utility companies.

"I applaud members of the House and Senate who voted to invest in Michigan's future by passing this historic legislation," Granholm said. "Together, we are sending a signal to the world that Michigan is ready to build a bright future for our citizens by creating jobs, diversifying our economy, and ensuring that our 21st century energy needs are met in a way that protects our pocketbooks and the planet."

The demand for green energy is skyrocketing as Americans grow more concerned about the impact of fossil fuels on climate change and our national security.

The Michigan Public Service Commission estimates that Michigan currently spends $26 billion to import fossil fuels annually.

Granholm has argued that an RPS is essential for Michigan's economic future, because they drive investment in this emerging industry. Venture capital firms and green energy manufacturers are investing billions of dollars in expanding capacity but generally only invest in states that have an RPS.

Green energy manufacturing is considered to be a perfect fit for Michigan given the state has superior tool and die, metal fabrication, and metal working capabilities; manufacturing expertise and facilities that can be retrofitted to produce things like wind turbines; a manufacturing supplier network that is already starting to supply green tech manufacturers; tremendous research and development expertise in our universities and corporate research centers; a world class workforce; and an outstanding wind resource.

The U.S. Department of Energy (USDOE) estimates that Michigan has the potential to be one of the top eight states for wind energy generation in the country, making Michigan an attractive customer market for wind turbine manufacturers. The USDOE has also cited a study by the Renewable Energy Policy Project that found Michigan is the fourth best- positioned state to expand wind power manufacturing jobs. Many wind turbine manufacturers are sold out of their product for one or two years down the road.

Michigan's quickly growing solar manufacturing industry, which includes global heavyweights like United Solar Ovonic and Hemlock Semiconductor, will also benefit from the legislation, by increasing demand for their products.

Net Metering Standards for renewable energy systems (e.g., wind turbines and others) that are 20 kW and under:

  • Customers that install renewable energy systems that are 20 kW and under will receive "true net metering."  This means that you can be credited at the full retail rate for putting electricity back on the grid.
  • Interconnection fee is capped at $100
  • Cost of additional meters or tests on renewable energy systems born by utilities
  • Renewable Energy Credits generated by customers stay with the customers and can be sold
  • Enrolled SB 213 does provide for net metering for all systems with a modified program up to 150 kW
Finally, Enrolled SB 213 also provides for net metering for biomass systems up to 550 kW in size, but there are additional costs and it is also a modified program.

International Promotion Calendar

In the past we've offered a listing of upcoming events in a small calendar. In an effort to offer you more comprehensive information we are now providing a link to an upcoming events page, which in turn offers links to individual event information.


Contact Information

 

Michigan Department
of Agriculture

Don Koivisto, Director

MDA Agriculture
Development Division

PHN: (517) 241-2178
FAX: (517) 335-0628

Robert Craig 
Division Director
craigr@michigan.gov

Amy Bearss
Executive Secretary
517-241-2177
bearssa@michigan.gov

Jamie Zmitko-Somers
International Marketing
Manager
(517) 241-3628
zmitkoj@michigan.gov

Christine E. Lietzau
Select Michigan Program
(517) 373-9800
lietzauc@michigan.gov

Michael DiBernardo
Economic Development Specialist
(517) 373-9144
dibernardom@michigan.gov

Linda Jones
Grape & Wine
Program Manager
(517) 373-9789
jonesl9@michigan.gov

Karel Bush
Grape & Wine
Promotion Specialist
(517) 241-4468
bushk9@michigan.gov

Sherri Goodreau
Grape & Wine
Promotion Assistant
517-241-3415
goodreaus@michigan.gov

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www.mdainternational.com

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