Issue 1, 2008
In this Issue:

Export Seminar Held in Lansing

The Michigan Department of Agriculture (MDA) and the Food Export Association of the Midwest USA hosted an export seminar on February 22, 2007, in East Lansing at the Kellogg Hotel and Conference Center. Thirty-three attendees representing nineteen Michigan companies participated in the full-day seminar.

Dennis Lynch, Food Export Helpline, presented information on a wide range of exporting subjects including export distribution, pricing, quoting, terms of sale, and export documentation and payments.

Brandon Davis, generic program coordinator, presented information on programs and services available for Michigan food and agricultural exporters, offered by Food Export Association of the Midwest. More information on the programs and services is available at Food Export’s Web site, www.foodexport.org.

Jan Blaho, of the Export-Import Bank of the United States (Ex-Im Bank) spoke about the services that Ex-Im Bank can offer to companies. Jan also discussed trade finance, how to improve cash flow, and how to reduce international risk. Additional information about the Ex-Im Bank’s services is available at www.exim.gov. Bill Richeson of National City Bank and Scott Hibbard of Comerica Bank were also in attendance to answer questions about export financing.

Dr. Tomas Hult, of the International Business Center (MSU) spoke about GlobalEDGE, a knowledge web-portal, www.globaledge.msu.edu, that connects international business professionals worldwide to a wealth of information, insights, and learning resources on global business activities.

MDA and Food Export Association of the Midwest are planning future seminars. If you have ideas or topics that you would like to learn more about please contact us. Additionally, If you are interested in attending a seminar, please contact Jamie Zmitko-Somers at zmitkoj@michigan.gov or 517-241-3628. Additional export education courses can be found online at: www.exportessentials.org

Opportunities for Michigan Agricultural Exporters to Meet Buyers From Around the World

International buyers from Mexico, Canada, Japan, Jamaica and South Korea will be in Chicago, IL, May 17-20, 2008, for the Foodservice Buyers Mission at the National Restaurant Association Show.  Michigan companies can meet with these buyers one-on-one for a nominal fee of $75, if registered by April 5. The buyers are interested in many different types of products for the food service industry.  To register for the event or to see complete buyer profiles and products of interest please click here.
Taking place in the three Midwest cities of Chicago, Milwaukee, and Lansing, is the 2008 Midwest Buyers Mission.  Up to 25 buyers from around the world are expected to attend the July 23 meetings in Michigan.  Participating companies may choose to attend any of the three meeting locations.  These meetings offer unparalleled access to top buyers from over 18 countries.  Participants also learn about exporting, marketing requirements, strategies, and opportunities in a variety of foreign markets from the buyers.

Michigan Grape and Wine Industry Council News Strategic Planning Activity

Recent Strategic Planning activities for the Council confirmed the following general areas of effort to support the continued growth of the Michigan wine industry:

1. Encourage Quality Improvement
2. Organizational Issues
3. Promotion/ Consumer and Trade Education
4. Regulatory
5. Industry Education
6. Economic/ Financing Issues

Information on the Strategic Plan and the Council’s Annual Plan of work for Fiscal 2008 (October 2007 – September 2008) can be found on the Council’s Industry Resources section of www.michiganwines.com

April is Michigan Wine Month

Governor Jennifer Granholm has declared April as Michigan Wine Month!  April is a great time to visit wineries throughout the state.
The Council will kick off the month by launching a newly designed Web site, www.michiganwines.com, with a special feature on events all over the state celebrating Michigan Wine Month.  

Select Michigan Program Seeks Vendors for Summer Farmers' Markets

The Select Michigan Program is seeking farmers and specialty food producers interested in selling their Michigan products at special farmers' markets in Lansing and Detroit this summer.   The farmers’ markets, sponsored by the Michigan Department of Agriculture’s Select Michigan Program and the Michigan Food & Farming Systems (MIFFS), with funding from the USDA Agricultural Marketing Service, and additional support from the Michigan Farmers Market Association and the Food Bank Council of Michigan, will help promote the benefits of buying locally and make a personal connection between farmers and consumers.  Dates and locations of this year's markets are: Thursday, July 24, 2008, "Buy Fresh, Buy Local - Select Michigan" Farmers' Market, State Capitol lawn, Lansing, MI; Friday, August 22, 2008, "Select Michigan Marketplace", Henry Ford Hospital, Grand Blvd Campus, Detroit; and Thursday, September 18, 2008, "Select Michigan Day" Farmers' Market, State Capitol lawn, Lansing, MI.  Vendor spaces are free, but limited, and first priority will be given to companies featuring and selling products made from Michigan specialty crops.  Specialty crops are defined as fruits and vegetables, tree nuts, dried fruits, and nursery crops (including floriculture).  If you are interested in participating at any of the farmers' markets, please contact Jeanne Lipe, Marketing Specialist, Michigan Department of Agriculture, at 517-373-9790 or lipej@michigan.gov.  

MDA seeks companies for a Select Michigan Pavilion at the 2008 Michigan Food & Petroleum Trade Show in Novi

The Michigan Department of Agriculture Select Michigan Program is seeking Michigan food and agriculture companies interested in participating in a Select Michigan Pavilion at the 2008 Michigan Food & Petroleum Trade Show, April 28-29, in Novi, www.afdom.org.

This annual trade show, hosted by the Associated Food & Petroleum Dealers, Inc., is a selling trade show that attracts buyers from convenience stores, supermarkets, specialty stores, drug stores, bars, restaurants and service stations.  Exhibit space within the pavilion is being offered to Michigan food processors, specialty food companies and other food and agriculture businesses at a discounted rate.

Ten 10’ x 10’ booth spaces are available within the Select Michigan Pavilion.  Companies can reserve whole booths or half-booth spaces.  Booths feature carpeting, curtained backdrop, chairs, table, company name sign, limited electricity, complimentary ice and complimentary customer tickets.

Priority will be given to companies featuring and selling products made from Michigan specialty crops.  These companies will also receive a larger price discount for booth space, supplemented by the USDA Specialty Crop Block Grant, administered by the Michigan Department of Agriculture. Specialty crops are defined as fruits and vegetables, tree nuts, dried fruits, and nursery crops (including floriculture). Non-specialty crop companies are welcome to participate if booth space is available, at a slightly higher rate than the specialty crop rate, but still lower than the regular exhibitor price.

Cost for one whole 10’ x 10’ booth is $600 for specialty crop companies and $900 for non-specialty crop companies.  The regular exhibitor rate is $1,025 per booth.  Half-booth spaces are available at $300 and $450, respectively.

Ag Innovation (Julian-Stille) Grantee Success Stories

Geerlings Hillside Farms, LLC, located in Overisel, Michigan, built an Anaerobic Digester to process hog manure from several facilities.  The digester is currently being fed at the rate of 12,000 to 14,000 gallons per day (~4.5 million gallons per year), resulting in a 40-45 day retention time.  On average, the on-site animals produce 8,000 gallons per day.  The project has agreements to process manure from four other local farms.  In addition, the manure supply agreements contain an option for contributing farms to obtain liquid digestate for use on fields during crop cultivation periods.  The project expanded an existing agricultural site, resulting in an anticipated increased asset value of $1.1 million.  Increased annual farm sales will depend on the selling price of fertilizer pellets and carbon credits negotiated in the contracts.  The system is especially beneficial to the four local farmers whose herds are too small to consider investment in such a system.  By installing a centralized system on one of the largest farms in the area rather than a centralized non-farm location, manure hauling is minimized and the trucks stay within the local farming community. The company has created 1 new job with total new capital investment of $1,074,347.
           
Anderson & Girls Orchards, LLC, located in Stanton, Michigan, upgraded their apple cider production operation to meet the FDA requirements that apple cider be pasteurized before it can be sold.  The company purchased and installed a FDA approved UV cider processor and enhanced the processing area and facilities.  The new equipment will allow Anderson & Girls Orchards the ability to produce over 30,000 gallons of cider for sale.  The company has reported that their production and sales have more than tripled, while creating a superior product using the UV technology.  The traditional pasteurization process of heating produces a cloudy final product.  The UV process produces the same level of public health protection, but it does it in a way that retains the original clarity of the cider being produced.  Total new capital investment is $69,945.

Coveyou Farms, LLC, in Petoskey, Michigan, explored the benefits of new highly translucent ETFE thermoplastic coverings for season extension high tunnels.  Two high tunnels were built with the new covering material and were used to grow tomatoes and cucumbers during the 2007 crop year.  Tomatoes and cucumbers were grown successfully with tomatoes maturing significantly earlier than similar field grown crops.  The earlier maturing tomatoes were able to command a higher price in the marketplace.  The market introduction was two weeks ahead of all other field grown tomatoes in the area and validated the expected outcome of being able to produce tomatoes earlier into the season.  Additionally, as field tomatoes had all but completed production, the high tunnels produced reasonable quality fruit well into November.  Total new capital investment is $38,630.

Read more of the success stories here.

If you have any questions, please contact Mike DiBernardo at 571-373-9144 or at dibernardom@michigan.gov.

Governor Praises 2007 Achievements and Growth in Michigan's Food and Agriculture Industry

Governor Jennifer M. Granholm and Michigan Department of Agriculture Director Don Koivisto applauded the outstanding achievements and economic growth made by Michigan’s food and agriculture industry during 2007.  From a new record reached in the state’s annual agricultural exports to the benefits from the bio-economy boom in renewable fuels to expansion in the state’s general farm economy, the agri-food sector exhibited significant broad-based economic growth during the year. 

“Michigan’s food and agriculture industry helps drive our economy and the industry had a successful 2007,” Granholm said.  “It’s poised to reach even greater heights in 2008 as we continue to focus on diversifying the state’s economy, creating jobs and investment.” 

“Last year was very good year to be in agriculture,” said Koivisto. “Michigan agriculture is a growing segment of the state’s economy.  Michigan’s agri-food sector is the state’s second largest industry, employing more than 1 million people, and generating $63.7 billion for Michigan’s economy - an increase of $3.6 billion since 2005.”

The following highlights agricultural successes in 2007:

Renewable Fuels and Bio-Products

Michigan ranks 7th in the nation in ethanol fuel production, at 267 million gallons (mmg) capacity, according to the Renewable Fuels Association. To date, nearly $1 billion has been invested in Michigan’s biofuels plants - both ethanol and biodiesel - with an annual estimated state economic impact of approximately $600 million.

The Michigan Renewable Fuels Commission issued its initial report in June 2007, with numerous key recommendations for growth and development in the renewable fuels industry.  Renewed focus must be applied to the development of biofuel pump infrastructure in Michigan, including a “green retailer” program. 

There are five corn-based ethanol plants operating in the state – in Albion, Caro, Marysville, Riga, and Woodbury - creating 220 direct jobs. Total ethanol production by the end of 2007 reached 200 mmg, with ethanol fuel consumption estimated to be approximately 210 mmg.

The biofuels boom has generated large-scale spin-off business expansions for Michigan.  For example, due to national higher demand for corn varieties, Monsanto Company began expanding their Constantine DeKalb Seed Corn Production facility by $40 million, with completion expected by the summer of 2008.  As a result of this expansion, 500 additional seasonal jobs and about 10 processing jobs will be created, along with adding 6,500 acres of seed corn production in southern Michigan.

Agricultural Exports

According to a recent USDA Agricultural Trade Update report, Michigan’s annual agricultural exports generated more than $1 billion and supported 12,800 jobs.  The state exports almost one-third of its 200 agricultural commodities.  In 2007, Michigan inched out Kentucky for the 19th spot among the top 20 state agriculture exporters in the nation.

Dairy Industry

Dairy farming is the leading segment of Michigan’s agricultural industry. Milk production has increased 30 percent over the last 10 years with a six percent increase in 2007.  According to the Michigan Milk Producers Association (MMPA), the increase translates into 2 million pounds per day increased milk processing capacity and created approximately 500 new farm jobs. 

In 2007, General Mills’ Yoplait Yogurt began a $32 million expansion of its Reed City facility.  The company received a MEGA tax credit from the Michigan Economic Development Corporation for the expansion, which will result in 25 new jobs.  The MMPA will be one primary supplier of milk and nonfat dry milk to the Yoplait plant.  Once the plant expansion is complete, the plant will employ over 400 employees and will become the largest yogurt production plant in the U.S. The plant will purchase more Michigan food products totaling over $50 million annually from state farms and agri-businesses. 

More Michigan Food and Agriculture Growth

In 2007, Michigan wineries and grape growers received attention from a national study demonstrating that the state's grape juice and wine industry contributes more than $789 million annually to the economy, and supports employment of approximately 5,400 Michigan residents.  There are approximately 450 Michigan grape farmers with 14,600 bearing acres. Michigan's booming grape juice and wine industries also significantly impact tourism with more than 800,000 tourists visiting the state’s 50 wineries.

MDA’s Julian-Stille Agriculture Innovation Grant Program, funded in 2005 as part of the 21st Century Jobs Fund, awarded $4.7 million to 40 companies.  The program’s goal is to accelerate the growth of Michigan’s $63.7 billion food and agriculture industry.  In 2005, the program was appropriated $10 million from the 21st Century Jobs Fund with $5 million earmarked for FY07 grants.

By December 2007, 10 out of 40 grant awardees completed their projects.  This program has leveraged state funds, generating private industry investments at a 7:1 ratio; and creating 46.5 new jobs.  These companies have made $7,958,665 in new private capital investment, with MDA paying $1,115,856 in grant reimbursements.

Additionally, Michigan’s agricultural commodity groups provide approximately $2.4 million annually to support research at Michigan State University and other Michigan colleges and universities.

For more information on Michigan agriculture or the above programs, please visit www.michigan.gov/mda or contact MDA’s Office of Communications at 517-373-1104.

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.

• Upcoming Events: Trade Shows, Buyers' Missions and Food Show Plus! Services Information

Contact Information