Canadian Specialty Food Trade Mission

The Canadian market is an over $450 million market for Michigan agricultural products and an especially important market for specialty food items. The Mid-America International Agri-Trade Council (MIATCO) and the Michigan Department of Agriculture (MDA) hosted a trade mission for Michigan and Midwest companies, February 26-28, 2006. Companies attending the mission had the opportunity to go on retail tours visiting specialty stores such as Whole Foods, Longos, Sobeys, and Pusateri. Trade mission participants also had one-on-one meetings with Canadian importers and distributors, and learned about Canadian requirements. Pattco, a Saline-based manufacturer of Flatouts Flat Bread had the opportunity to meet with more than five potential customers. For more information on upcoming activities similar to the trade mission, contact Jamie Zmitko-Somers at 517-241-3628.

Japan a Great Export Destination for Michigan Products

MDA and MIATCO sponsored Food Show Plus! Services at the Foodex

Graceland's Steve Nugent and Suzi Mills with their Japanese agent at the Foodex Show in Japan.

Show in Japan. The show focused on the retail sector in Japan and was held March 14-17, 2006. Services offered during the show included: interpreters, translation of company's information into Japanese, retail tours, and assistance following up with trade leads. Companies that are located in Michigan or source product from Michigan exhibiting at the show included: Graceland Fruit, SunRich Food Group, North Dakota Mill & Elevator, and Cherry Marketing Institute.

Japan is Michigan's number two export market with total value of over $36 million in agricultural products exported to Japan. Japanese consumers continue to be willing to pay higher prices for high quality and convenient products. Some of the opportunities for U.S. exports include:

• Organic and naturally prepared foods/drinks and functional foods/drinks for the increasingly health-conscious
• Prepared precooked foods for the convenience-conscious Japanese consumers
• Products in easier-to-open containers for the rapidly growing elderly population
• A growing market for pork
• Quality ingredients and conveniently prepared semi-processed foods that can reduce costs for food manufactures
• Some items to focus products for the Japanese consumers include:
• Food Safety - The Japanese consumers are very concerned about food safety and traceability as seen with U.S. beef and BSE.
• Small Packaging - Japanese have small families and homes with minimal storage space; thus, large packages are impractical
• Healthy Foods - The Japanese are increasingly health conscious as the population continues to age

Export Seminar Held in Grand Rapids

MDA, MIATCO and the Van Andel Global Trade Center hosted an export seminar on March 28, 2006 in Grand Rapids. Eighteen attendees representing 11 Michigan companies participated in the full-day seminar.

Dennis Lynch, who runs MIATCO's Food Export Helpline service, presented information on a wide range of exporting subjects including determining a firm's level of export readiness, researching and targeting top international markets, methods of distribution, terms of sale and payment, and public and private assistance available for exporters.

Will Smith, Generic Program Coordinator for MIATCO, explained services and programs that MIATCO offers to Midwestern food and agricultural exporters. Jamie-Zmitko-Somers, International Marketing Program Manager for MDA, highlighted upcoming events for Michigan exporters.

2006 Michigan Wine Magazine Available
Featured articles include wine tour packages and vineyard weddings

The 2006 edition of Michigan Wine Country is now available. This is the biggest and best version yet of this popular educational and touring publication. The magazine's release kicks off Michigan Wine Month (April), and will assist travelers in planning seasonal touring.

Michigan's 45 commercial wineries are listed, along with maps, hours and directions. Articles include the popular "What's New" section, which points readers toward developments at the wineries and their newest releases. There is also information on the 2005 vintage - the best ever in the region, an events section, and articles on vineyard weddings and wine tour packages.

"We learned a lot while we were researching these articles," said Linda Jones, editor of the magazine and executive director of the Michigan Grape and Wine Industry Council. "Our readers who enjoy wine will really enjoy learning about it as well."

Published by the Michigan Grape and Wine Industry Council and HOUR Custom Publishing, this year's larger, 44-page edition will find its way into 200,000 homes around the country.

Michigan Wine Industry Annual Meeting

This year's annual meeting of the Michigan wine industry, held at Crystal Mountain Resort in Thompsonville March 1-3, 2006, was a success with 150 registrants, including winemakers, grape growers, tourism industry partners, legislators and members of the media attending.

Elizabeth Slater, a well-known wine marketing expert with In Short Direct Marketing, presented marketing sessions focused on tasting room sales and direct marketing. Karen Peterson, of Davidson-Peterson Associates, presented the results of consumer research conducted over the last six months to help define the "Michigan Wine Experience."

Don Coe, from Black Star Farms, was honored with two awards during Thursday evening's banquet. Representative David Palsrok presented Don with a Special Tribute for his efforts as "Champion for Michigan Wine." And members of the Michigan wine industry presented Don with a special artist's interpretation of his dedication to the industry.

State to Offer Workshops for Agricultural Grant Program

The Michigan Department of Agriculture is offering a grant opportunity that will promote and enhance Michigan's $61-billion agriculture industry. Proposals for the competitive grant program, "Agricultural Innovation Program" (also known as the "Julian-Stille Value-Added Program"), will be accepted now through July 13, 2006. MDA will also host several grant writing workshops across the state in May and June to assist potential applicants in developing sound proposals.

Eligible applicants include individuals, farmer-owned cooperatives, partnerships, commodity boards, limited liability companies, private or public corporations, and local units of government. Applicants must be able to provide a 10 percent cash match. MDA will accept proposals intended to establish, retain, expand, attract, or develop value-added agricultural processing and related agricultural production operations in Michigan.

Grants will be awarded in the following categories:

Technical Assistance: Innovative technology or technical assistance, including feasibility studies that will enhance and support the commercialization of value-added products. Limit per grant: $100,000.

Facility Improvements: Upgrading, enhancements and acquisitions to buildings, equipment, utility modifications and improvements or telecommunications infrastructure. Limit per grant: $250,000.

Market Research: Market research and/or market development project for a product(s) and/or service(s) prepared by and industry consultant. Limit per grant: $50,000.

Business Plan: Detailed business plan development that incorporates a specific marketing strategy and specifically outlines the working capital and financial needs, management structure, construction, production, marketing, and distribution needs. Limit per grant: $25,000.

Facility/Land: Facility purchase and/or construction, including property acquisition and assembly, demolition, and site development. Limit per grant: $350,000.

Proposals will be evaluated, scored and ranked based upon the following:

• Economic impact on the community.
• Economic impact or enhancement to agricultural product and or service.
• Amount of project innovation and or initiative.
• Clear project proposal with specific and measurable outcomes.
• Management team experience and expertise.

Workshops have been scheduled for the following dates and locations:

• May 25, 2006
  Session 1: 9:00 A.M. - 11:00 A.M.
  Session 2: 1:00 P.M. - 3:00 P.M.
  Region IV Office
  Michigan Department of Agriculture
  1585 Tittabawassee Road
  Saginaw, Michigan 48604
  
  
• May 30, 2006
  10:00 A.M. - 12:00 P.M.
  Bay de Noc Community College
  Joseph Hierman Center
  Room 952
  2001 North Lincoln Road
  Escanaba, Michigan 49829
  
  
• May 31, 2006
  10:00 A.M. - 12:00 P.M.
  Zeeland Community Center
  2nd Floor
  14 South Church Street
  Zeeland, Michigan 49464
  
  
• June 1, 2006
  7:00 pm - 8:30 P.M.
  York Township Hall
  11560 Stony Creek Road
  Milan, Michigan 48160
  
  
• June 5, 2006
  Session 1: 9:00 A.M. - 11:00 A.M.
  Session 2: 1:00 P.M. - 3:00 P.M
  Radisson Hotel
  Michigan Rooms 1-2
  111 North Grand Avenue
  Lansing, Michigan 48933

Additional workshops may be scheduled as needed. For grant proposal information, such as instructions, format requirements and scoring system visit www.michigan.gov/mda or call 517-373-9144. Proposals must be RECEIVED (not postmarked) by 5 p.m. on Thursday, July 13, 2006, to: MDA-Agriculture Development Division, P.O. Box 30017, Lansing, MI 48909.

National Study Says Biodiesel Plant Feasible in Michigan

An MDA-sponsored report on biodiesel concludes that with an investment of $7-$12 million, a stand-alone, five to ten million-gallon biodiesel plant could be built in one of several locations, including Bangor, Zeeland, Gratiot County and several other sites.

The Biodiesel Feasibility Study, prepared by REMCO LLC and DeSmet Ballestra, examined several criteria including market feasibility, financial feasibility, site feasibility, technical feasibility and management feasibility for Bangor, Zeeland, Gratiot County and several other sites. Other sites for a stand-alone 5-10 million gallon biodiesel production plant elsewhere in Michigan were considered due to their proximity to lower cost feedstock or end-product markets.

"We're looking forward to having some in-state production. Last year 3 million gallons of biodiesel were brought into Michigan from other states, so some in-state production is needed to help fulfill Michigan's growing demand for biodiesel and to help both the economy and Michigan's soybean farmers," said Gail R. Frahm, Michigan Soybean Promotion Committee executive director and one of the investors in the feasibility study. "With users such as schools, Michigan Department of Transportation, the U.S. postal service, state and national parks, city fleets, farmers, and MANY others, biodiesel is here to stay and we hope to help continue to grow the demand."

Increased fuel efficiency of up to 30 percent for the diesel engine in the current high priced fuel environment is expected to lead to increased demand for diesel engine automobiles and potentially the cleaner-burning biodiesel as well. Diesel engines currently make up less than 1 percent of the automobile market in the U.S.; however, this is expected to change with the future introduction of high-mileage diesel engines into the U.S. market and the introduction of cleaner burning ultra-low sulfur diesel fuel in 2006.

"The time is now for encouraging biodiesel production in the state of Michigan-like we've done for ethanol production-to create value-added jobs in the agricultural sector, which will create jobs and opportunities in Michigan," said Gene DeRossett, state director of USDA Rural Development. "We, at USDA, look forward to partnering with rural Michigan in biodiesel production."

The Biodiesel Feasibility Study was financed in part by a USDA Rural Business Enterprise Grant from USDA Rural Development, along with support from Capital Area Innovative Farmers, individual farmers, CAP Co-op, Michigan Soybean Promotion Committee, Corn Marketing Program of Michigan, Michigan Farm Bureau, Michigan/National Farmers Union, Gratiot County/MSU Extension, Greater Gratiot Development and MDA. The study comes on the heels of a report released in January by Michigan State University, which estimates the impact of Michigan's agri-food sector on Michigan's economy to be $60.1 billion annually and predicts continued growth.

Workshop Shows Businesses How They Can Take Group Action by Forming a Cooperative

Individuals or groups who are interested in forming product marketing or manufacturing cooperatives can attend an informational workshop offered by the Michigan State University (MSU) Product Center. "Collective Business Action" will be held from 9 a.m. to 4 p.m. on May 24, 2006 at the Hampton Inn and Suites in Okemos, near Lansing.

The workshop will help participants understand the business structure of a cooperative, how it compares to other business forms and how they need to proceed to form a cooperative. It will also outline member benefits and responsibilities and how the MSU Product Center can assist would-be entrepreneurs in forming cooperatives. Those with specific cooperative interests are invited to meet with business counselors during the afternoon session.

User-owned cooperatives process and market products, purchase production supplies or consumer goods, provide housing and credit, build and operate rural utilities and provide other services needed by rural residents. By working together for mutual benefit, members may reduce costs, achieve greater financial returns or obtain otherwise unavailable services.

Though the program is free, pre-registration is requested by calling 517-432-4608, or by sending an e-mail to product@msu.edu , or registering online at www.productcenter.msu.edu .

International Promotion Calendar

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