INTERNATIONAL UPDATE

IOWA ECONOMIC DEVELOPMENT AUTHORITY — INTERNATIONAL NEWSLETTER FALL 2018

NEWS YOU CAN USEAdditional Grant Funding Now AvailableThe Iowa Economic Development Authority’s (IEDA) International Trade Office is pleased to announce once again the receipt of a Small Business Administration STEP grant to provide additional financial assistance to eligible Iowa small businesses through the following programs:

· Export Trade Assistance Program (ETAP): Exhibit at an international trade show held outside the U.S.

· Domestic Trade Assistance Program (DTAP): Exhibit at international trade shows, held in the U.S., for international marketing promotion

· Market Trade Assistance Program (MTAP): Specific market projects

– Website translation into foreign language, search engine optimization and localization

– Design, translation and localization of a brochure or social media platform in a foreign language

– Compliance testing by a third-party on an existing product for entry into an export market

· ExporTech (ETech): Participate in the ExporTech™ training program sponsored by the Center for Industrial Research and Service (CIRAS) at Iowa State University or other professional export education course

Applications for events/projects occurring September 30, 2018 – September 29, 2019 are being accepted. Must apply AT LEAST 45 days prior to start of an event/project. For more information about International Financial Assistance programs, visit iowaeconomicdevelopment.com/IFA or contact Lisa Longman at lisa.longman@iowaeda.com or 515.348.6243

EDUCATIONImport Training October 11, 2018 Presented by Scarbrough University and held at the Greater Des Moines Partnership from 8:30 a.m. – noon. Learn Import Best Practices, the import shipping process, U.S. Customs Regulations, HTS Numbers & Classification, Partner Government Agencies, the best Incoterms to buy on and more. Plus, a question/answer forum on industry hot topics such as Section 232, 301 and NAFTA at the end of the training. Flyer at iowaeconomicdevelopment.com/intlevents. Registration at members.dsmpartnership.com/events/details/import-training-10-11-2018-57128

Export Compliance SeminarsNovember 7 & 8, 2018 Registration is open for the international education and compliance seminars presented by Mr. Mike Allocca. Allocca is an internationally recognized trainer on the topics of export operations, compliance and more. The event will be held at the FFA Enrichment Center in Ankeny, Iowa. If you’re involved in international exports, this training is for you! Register soon as seating is limited and sessions are filling up quickly.

Wednesday, November 7 – Export Compliance Topics covered include: how to perform due diligence, mandatory denial lists, export documentation and filing of the EEI, Schedule B classification, NAFTA basics, country-specific requirements

Thursday, November 8 – Introduction to HTS/Schedule B Classification Topics covered include: Harmonized Tariff Schedule, GRI-General Rules of Interpretation, roles of customs broker, freight forwarder and importer/exporter of record, understanding CROSS – Customs Ruling Online Search System

Register today at regonline.com/18intltrain

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SAVE THE DATESAgro 2019 June 6 – 9, 2019AGRO www.agro-expo.com is the largest agricultural exhibition of the CIS and Eastern Europe and the leading Ukrainian trade fair for agricultural machinery, animal farming, renewable and alternative energy and organic farming. The organizer of AGRO is the Ministry of Agrarian Policy and Food of Ukraine. Contact Peggy Kerr at peggy.kerr@iowaeda.com or 515.348.6242 to learn about a potential Iowa pavilion.

UPCOMING EVENTSFIGAP October 24 - 26, 2018 The IEDA in conjunction with the Iowa Mexico Office (IMO) invite you to exhibit in an Iowa pavilion at Mexico’s premier trade show in Guadalajara for the livestock and animal feed industries. FIGAP is among Latin America’s leading events for the livestock industry, featuring participation by the most important exhibitors in areas such as livestock equipment, animal feed manufacturing machinery, animal health, genetics, nutrition, livestock software, feed and seed bins and pet food, as well as aquaculture companies, ingredient and additive distributors, transport service providers and others. The show features approximately 240 exhibitors and attendees from over 50 countries. FIGAP also features a two-day series of workshops on feed production techniques and innovative technologies. Iowa exhibitors at FIGAP receive support during the exhibition from the IMO, discounted space in the Iowa pavilion, advance promotion and more. For more information, contact Andrea Smith at andrea.smith@iowaeda.com or 515.348.6240.

Meet the Mexican Grain Buyers in Iowa October 25 – 26, 2018 The IEDA, in cooperation with the U.S. Grains Council and Iowa Corn, are bringing a team of grain buyers from Mexico to Iowa in October. A “Meet the Buyers” session will be held for Iowa suppliers of corn products, animal feeds including DDGS, grain handling, storage and transportation equipment, and feed manufacturing equipment. Contact Mark Fischer at mark.fischer@iowaeda.com 515.348.6241 or Andrea Smith at andrea.smith@iowaeda.com or 515.348.6240 to discuss your interest and receive more information when available.

Colombia and Panama Trade Mission February 3-9, 2019 Join this horizontal mission that is open to all Iowa companies in all sectors. This trade mission will help with expansion into the growing Colombia market with possibly two stops, plus a stop in Panama. The IEDA will work with your company to develop a detailed itinerary, including one-on-one meetings with prospective customers and potential partners. Iowa companies exported $80 million in goods to Colombia in 2017 and exports have increased 247 percent in the first six months of 2018 to $89 million. Iowa companies exported $21.5 million to Panama in 2017.

For more information, manufacturing companies should contact Andrea Smith at andrea.smith@iowaeda.com or 515.348.6240 and meat companies and agriculture groups contact Mark Fischer at mark.fischer@iowaeda.com or 515.348.6241.

FIND MORE EVENTS AND

EDUCATIONAL OPPORTUNITIES AT

iowaeconomicdevelopment.com/intlcalendar

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UPCOMING EVENTS, CONTINUED

Vietnam and Philippines Trade Mission March 15-23, 2019 Vietnam and the Philippines are growing markets for American goods and services. IEDA’s International Trade Office invites Iowa companies in all sectors to dive deeper into this opportunity during a trade mission next spring. Participating Iowa companies will meet one-on-one with prospective customers and partners, which is crucial to establishing business relationships in the region. An optional side-trip to Asia’s largest animal agriculture tradeshow, VIV Bangkok would be offered. There will be a separate meat group itinerary for pork and beef suppliers and aligned agriculture groups. IEDA will help companies meet business objectives by tailoring a custom itinerary. Why consider this trip?

· Vietnam and Philippines have a combined population of nearly 200 million people

· South Asian markets are growing at over seven percent per year and are eager for quality products, innovative technologies and new business opportunities

For more information, manufacturing companies contact Joseph Rude at joseph.rude@iowaeda.com or 515.348.6244 and meat companies and agriculture groups contact Mark Fischer at mark.fischer@iowaeda.com or 515.348.6241.

ANTAD & Alimentaria Mexico – Guadalajara, Mexico March 2019 ANTAD and Alimentaria Mexico www.alimentaria-mexico.com/en/ - focused on the retail and food industry, including distribution to the food service sector with categories including national food products and beverages, international food products and beverages, general merchandisers, furniture and equipment, health, wellness and personal care, and Technology and Solutions. Attendees include department stores, specialty stores, distributors, importers, brokers, food service professionals and distributors from North America, Central America and Latin America. Contact Andrea Smith at andrea.smith@iowaeda.com or 515.348.6240.

RECENT HIGHLIGHTSFarm Progress Show The IEDA along with the Ames Convention & Visitors Bureau, Boone County Chamber of Commerce and Convention & Visitors Bureau, and Greater Des Moines Convention & Visitors Bureau sponsored an International Trade Center at the 2018 Farm Progress Show located in Boone, Iowa.

The International Trade Center offered international guests from over 30 countries, as well as exporting exhibitors, a comfortable location to relax, network, have internet access and hold meetings during the Farm Progress Show. In addition, there were multiple translators on site available every day to assist visitors with languages such as Portuguese, Spanish, Chinese, German and French.

Iowa at IFT 2018The 2018 IFT (International Food Technology) tradeshow held in Chicago this July was a success for Iowa. IEDA organized a pavilion, which included 12 Iowa companies and economic developers from Crawford County, IADG, ICR IOWA and Quad City Development. An additional 44 Iowa-connected companies attended this year’s event. IEDA International Trade Office offered onsite technical support for Iowa companies who export to overseas customers. During the three-day conference 23,000 attendees from the food technology industry attended education sessions and met with more than 1,200 exhibitors. The Iowa delegation provided great visibility and leadership in this important industry.

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RECENT HIGHLIGHTS, CONTINUED

Iowa Sister State Hebei Celebrate 35th AnniversaryOn August 26-28, Iowa hosted a delegation of 40 people from Hebei China as part of the 35th anniversary celebration of Iowa Sister State relationship. The delegation was led by Hebei Vice Governor Yanjun Xia and included Chinese business and government leaders. During the visit, there were 10 MOUs (business agreements) signed between Chinese and Iowa businesses. Iowa companies included: HyLine, TransOva, Kimberley Farms, Deere, Stine, Pioneer and Monsanto. The Hebei visit was topped off by a joint music concert with the students of West Des Moines Valley High School Chamber Orchestra and Shijiazhuang Foreign Language School.

ITO Professional DevelopmentStaff of the International Trade Office continually invest time in educating trade specialists to better serve Iowa exporters. One of the mechanisms is membership in the State International Development Organizations (SIDO), a national organization dedicated to supporting state international trade agencies. SIDO’s annual Best Practices Forum held in Minneapolis in July afforded the opportunity for Peggy Kerr, Lisa Longman, Joseph Rude and Andrea Smith to attend, along with peers from 37 states and seven countries. In September, Andrea Smith attended the Interagency Trade Officer Training Program by the Trade Promotion Coordinating Committee for an overview of all federal trade promotion tools that are available to serve U.S. exporters.

GUEST ARTICLESTranslation: Breaking Down the Barriers to Export SalesJoshua Richardson, President, Gateway Globalization Inc, jrichardson@gatewayglobalization.com

Translation is sometimes the last item exporters think about when deciding to sell products in international markets. The importance of translation, and more to the point, the implications of not translating promotional materials, user manuals and other content, are sometimes lost in a world where English is considered the language of commerce. While English may be widely understood in many international markets, it doesn’t mean this is their preferred language for communication. In other markets important to Iowa businesses, such as China, Japan and South America, English competency can be extremely low. By taking an English only or a minimalist translation approach, companies are highly likely missing out on sales opportunities. Explore a few ways supporting a market’s preferred or native language can break down barriers to export sales.

Help Customers Find You By not translating materials, especially your website, it’s hard for most customers in international markets to find you. According to the online statistics website Statistica, English only comprises 25 percent of internet usage. This means most people are searching for products and services in a language other than English, and most likely their native language. They will be using keywords unique to their language. If a website is only in English, for instance, they will be less likely to find the site to learn about your product(s). Even if they do find your website, they will be far more likely to abandon it and find a company that has a website in their language.

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GUEST ARTICLES, CONTINUED

Be Competitive Choosing not to translate for international markets makes a company look like an outsider and potentially perceived by customers as not committed to their market. Even if your product is the best, they may worry about problems dealing with you during the sales process or perceive they will have problems with after-sales support. Given the choice between you and a competitor that behaves like a local (or is a local), the buyer is more likely to choose these companies because they provide information that is easy for them to understand. Research done by translation industry analyst, Common Sense Advisory, found that “in Sweden, 80 percent of Swedish business buyers gave preference to buying in their own language…even though 95 percent of the populations speak English as a second language.”

Don’t give the local competition a leg up! Translate your content to level the playing field.

Be Local Most customers in today’s world are spoiled for choice when it comes to buying products and services, so it’s more important than ever to look and feel local when selling to international customers. Like you, international customers want access to product information without hassle and that is easy to understand. Do you buy products that only offer their product information and materials in Chinese or German? Perhaps, but most of us would have a strong preference for our native language, English. International customers are no different. Asking them to read about your products in a different language may put them off entirely or create unnecessary misunderstandings. This could cost you sales.

There may also be legal reasons to support the local language. Many countries require information be provided in the country’s official language, especially for safety, legal and regulatory documents. It’s worth checking this out to be sure you won’t break any laws.

Enhance Your Company Image Translation, when done well, can significantly enhance your company image. Looking local, making it easy for customers to find you and being competitive all contribute to the amount of trust customers have in your company and products. Trust “translates” into a positive company image. You will generate more interest from international buyers and gain traction in these markets more quickly. You will get better access to the local press and attract local resellers, distributors and sales people.

Translations must be done well to achieve the best results. Assuming online translation tools can do this effectively is misguided and can lead to costly mistakes, embarrassment and loss of credibility. Seek professional translation companies for guidance and a professional outcome.

The Growing Demand for U.S. Beef and Pork in Vietnam and the Philippines Contributed by: Anna Demetillo, Trade & Research Consultant, Orissa International, www.orissa-international.com/our-services

Vietnam and the Philippines are among the high-growth markets for U.S. agricultural products in South East Asia due to factors such as growing population and burgeoning middle-class consumers with increasing disposable income. Moreover, the changing diet of the urban populations in these markets represents opportunities for the U.S., as the growing middle class is shifting towards more high-value food items.

It is interesting to note that the U.S. already accounts for approximately 30 percent of Vietnam’s total meat and meat imports. The country imported 262,321 live cattle and nearly 42,000 tons of meat (mainly beef with bone) worth a total of US $410 million in 2017.

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GUEST ARTICLES, CONTINUEDAccording to Vietnam’s Ministry of Agriculture and Rural Development, the country is seeing a distinct shift in food consumption patterns, with a preference for beef emerging over traditionally important sources of protein, namely pork and poultry. Demand for beef is estimated to have grown between four to five percent in 2017. Domestic production is unable to keep up with the growing demand, with total output of beef increasing by only 3.6 percent in 2017.

In 2017, Vietnam imported more than 6,500 tons of pork worth a total of about US$11.07 million. The Vietnam Ministry of Industry and Trade (MOIT) reports that the country’s pork imports have increased significantly in recent months, with 678 tons of pork worth US$1.03 million imported in June 2018, representing an increase of 50.4 percent in volume and 50.7 percent in value, compared to May 2018.

While Vietnamese consumers still prefer to buy fresh meat from traditional markets, there have been positive signs that the market is warming up to adopt chilled meat as a mainstream product. Reportedly, imported meat is much cheaper than local produce.

The Philippines, one of fastest growing meat consumers in the world, imported 691,462 tons of meat in 2017 registering a 6.9 percent increase from 2016. Pork accounted for 44 percent of the country’s total meat imports, of which pork cuts, rinds/skin and fats were the most imported pork parts/cuts. The U.S. is among the top suppliers of pork to the Philippines, with a 9.13 percent market share of the total imports. U.S. pork exports to the country were already valued at US$15.3 million for the first half of 2018, a 70 percent increase from last year. The Philippines is regarded as an increasingly important destination for U.S. pork when shipments to China are declining.

There is a growing demand for processed meat products in the Philippines, while pork production seems to be picking up in the country, the meat processing sector complains that locally produced pork does not meet the quality and presentation standards they need. Moreover, it is still uncertain if the country could achieve its goal of self-sufficiency in terms of pork production in the next decade. As such, the Philippines is expected to continue being one of the top importers of pork in the region to be able to meet the increasing demand for pork in the country.

In 2017, the volume of beef imports by the Philippines was 83,670 tons valued at US$283.8 million. The volume and value of beef imports increased by 9.48 and 18.6 percent, respectively, compared with 2016 records and about 64 percent of the total beef import volume for beef cuts. The U.S. is also among the top suppliers of beef to the Philippines having a 10.42 percent market share of the total imports. The Philippines has limited local beef production, and thus, it relies heavily on imports being driven by the growing demand of the food processors, as well as the demand by the food service and retail industries in the country.

Exporting to Vietnam and the Philippines can come with a set of unique regulatory and cultural challenges. In spite of this, opportunities for U.S. meat and meat products in these markets remain highly significant buoyed by the strong economic growth, growing middle-class and the high preference for U.S. brands and products perceived to be of high standard and quality.

Orissa International is IEDA’s authorized representative in South East Asia and can assist with general market information, market research, pre-screening of potential customers and partners, appointment scheduling and trade show support. Contact joseph.rude@iowaeda.com or 515.348.6244.

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CONTACT INFORMATIONEUROPE, NORTHERN AFRICA & MIDDLE EAST Peggy Kerr, Team Leader +1.515.348.6242 | peggy.kerr@iowaeda.com

AMERICAS & SUB-SAHARAN AFRICA Andrea Smith, Marketing Manager +1.515.348.6240 | andrea.smith@iowaeda.com

ASIA/PACIFIC Joseph Rude, Marketing Manager +1.515.348.6244 | joseph.rude@iowaeda.com

AGRICULTURAL PRODUCTS - WORLDWIDE Mark Fischer, Marketing Manager +1.515.348.6241 | mark.fischer@iowaeda.com

FINANCIAL ASSISTANCE Lisa Longman, Financial Assistance Administrator +1.515.348.6243 | lisa.longman@iowaeda.com

IOWA ECONOMIC DEVELOPMENT AUTHORITY

200 East Grand Avenue Des Moines, IA 50309 USA

International: +1.515.348.6200 Domestic: 1.800.245.4692

international@iowaeda.com

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