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Fresh From Florida How to Export to the Middle East
Ag Export Webinar
The Middle Eastern Market: Regional Composition
The Middle East consists of 20 countries:
Armenia, Azerbaijan, Afghanistan, Bahrain, Georgia, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Pakistan, Palestine, Qatar, Saudi Arabia, Syria,
Turkey, United Arab Emirates, Yemen
Reasons to Export to the Middle East
• U.S. exports reached over $380 billion in 2013
• $19 billion in exports to Saudi Arabia alone
• Growing middle classes
• Oman is located at strategic crossroads for global shipping between Asia, Europe, East Africa and the Arabian gulf
• There are U.S. Free Trade Agreements with Jordan, Israel, Bahrain and Oman.
Top Markets for Florida Exports
Live Plants: Saudi Arabia
Vegetables: United Arab Emirates, Saudi Arabia, & Kuwait
Fruit: Kuwait, Israel
Top 5 Florida Exports to the Middle East
1. Meat UAE ($21,801,573) and Kuwait ($9,421,512)
2. Vegetables, fruit, prepared ($11,900,477- Saudi Arabia)
3. Misc edible preps ($9,248,110- UAE)
4. Cereal, flour, starch ($6,370,317- UAE)
5. Live animals ($5,405,000- UAE)
UAE Market Overview
• The United Arab Emirates (UAE) is a wealthy nation with a dynamic market.
• Compared to other GCC countries, it is the largest market for U.S. food products, followed by Kuwait. Dubai is its commercial center and the regional trade hub.
• Consumer-ready food products account for about 60% of total U.S. food exports to the region.
• About 40-50% of U.A.E. food imports are re-exported to the Middle East, Asian and African countries.
UAE Market Overview
• The HRI (hotel, restaurant, and institution) sector consumes about 40-50% of imported U.S. consumer-ready foods and beverages, particularly red and poultry meats.
• Products of particular demand in the HRI sector include meat, dairy products, rice, edible oils, nuts, processed and fresh fruits and vegetables, snack foods, and processed eggs.
Saudi Arabia Market Overview • In 2012 Saudi Arabia was the U.S.’ largest trading partner in the Middle
East.
• Saudi Arabia relies mostly on foreign suppliers to satisfy about 80% of its food consumption needs. U.S. exports to Saudi Arabia for 2012 totaled $17.97 billion (our goods are considered high quality)
• Hypermarkets have introduced ready-to-eat meals and take-away food dishes as a substitute for home cooking.
• Bakalas (small grocery outlets) are filled with many consumer-oriented products originating from the United States and most have refrigeration and the capacity to store frozen foods.
Saudi Arabia Market Overview
• Demand for diversity in food and drink
products amongst the younger generation
leads to growth in modern grocery retailers
• Al-Azizia Panda United leads grocery
retailers with an 8% value share in 2014. It’s
competitors are Abdullah Al-Othaim Markets Co, Meed Trading Co, and Bin Dawood Group.
• Supermarkets have started increasing the area allocated to health and diet
products, including parallel imports of organic, gluten-free, whole wheat,
soya, sugar-free and similar food and drink items. Although these products
are expensive, they are gaining popularity amongst the younger population, given the high disposable incomes that the country enjoys.
Kuwait Market Overview
• Kuwait is the 3rd wealthiest country per capita in the Middle East.
• It has a predominantly oil based economy, with fuels accounting for 90.3% of total exports in 2014.
• Kuwait's imports most of its capital equipment, processed foods manufacturing equipment, and consumer goods.
• The U.S. remains a leading and strategic trade partner of Kuwait. Kuwait’s imports from the U.S. in 2014 were valued at $3.6 billion, a 40% increase over 2013 up from $2.6 billion.
Kuwait Market Overview
• Strengths of the Kuwaiti market include: – Stable regime
– Strategic location in close proximity to other Gulf markets
– Kuwaiti dinar is highest-valued currency unit in the world
– Friendly living environment for foreigners
– Moderate business costs
– English widely spoken
– Americans and American brands/products welcomed
Required Documents
• Saudi Arabia: Exporting Guidelines
– Certificate of Conformity Information
– Import Guide
– Retail Food Gain Report
• UAE: Commercial Business Guide
– Exporter Guide
• Trading with Kuwait Guide
– Export Process
– Kuwait Commercial Guide
Important Things to Note
• The GCC (Gulf Cooperation Council) has a 5% flat rate tax on imports.
• European and Dutch importers handle food distribution to military bases in the Middle East, and source themselves from Florida suppliers doing shipments from Miami.
Resources
USDA Foreign Agriculture Service Offices around the world carry out constant research to determine what types of U.S. agricultural products are in demand in each country. They report purchase statistics per item, demographic information on who is buying each type of U.S. product, where they are being purchased and other advantages and disadvantages for U.S. exporters in their specific countries.
We highly recommend that you familiarize yourself with their online site: www.usda.fas.gov.
Resources
The Department’s role with Florida exporters is to work with you from beginning through to your final shipments of products into the Middle East and you receiving your payments. We also issue a trade document called a Certificate of Origin and Free Sale. This document merely reports the country of origin of your products and states that your products are freely sold within the USA.
For further questions email: [email protected]
Or call: (850) 617-7340
Resources We recommend that you:
1. Familiarize yourself with the FAS website mentioned before.
2. Start to develop trade contacts with potential buyers by attending U.S./Middle East trade shows and missions. Experience firsthand the level of interest in your agricultural product(s) in that country.
3. Get yourself into the FAS Trade Leads (sales leads) program (http://www.fas.usda.gov/trade-lead-system ) as well as working with the nearest World Trade Center to you (Miami, Ft. Lauderdale, Orlando, Tampa Bay and Jacksonville). You can never carry out too much research before starting with your export deal.
4. Get in touch with the Florida Export Finance Corporation for assistance with export financing. Contact them at: (786) 845-0400, [email protected]. Their location address is: 1400 NW 33rd Street #200 in Doral, Florida 33172.
5. Join the Florida Department of Agriculture and Consumer Services FRESH FROM FLORIDA Program which offers legitimacy as a supplier of Florida commodities. To learn more about this go to http://www.freshfromflorida.com/Divisions-Offices/Marketing-and-Development/Agriculture-Industry/Join-Fresh-From-Florida.
We look forward to working with you and assisting you in entering new markets!
Obtaining a Phytosanitary Certificate
• Prior to obtaining a phytosanitary certificate, you need to determine the eligibility requirements for the destination (state or country). You can do this by contacting your local FDACS Division of Plant Industry district plant inspector. You can find their contact information at www.freshfromflorida.com/Divisions-Offices/Plant-Industry/Bureaus-and-Services/Office-Locations.
• To obtain a phytosanitary certificate, you must first establish an account in the USDA Phytosanitary Certificate Issuance Tracking System (PCIT). The PCIT system is used for submitting applications for both state and federal Phytosanitary Certificates. To set up an account, go to the “Welcome to PCIT” website - https://pcit.aphis.usda.gov/pcit/ and click on the “New to this site?” button. You will be prompted on how to establish the account.
• Once you establish an account with in the PCIT system, you will need to submit an application for a phytosanitary certificate. On the Welcome to PCIT website, click on the option for “Create Application without Template”. This will take you into the application process.
Obtaining a Phytosanitary Certificate Continued
• Click on the appropriate certificate type. This will likely be a PPQ Form 577 (federal phytosanitary certificate for foreign destinations) or a state certificate (for other destinations in U.S. states and territories).
• Input the appropriate information in the “General, Export and Shipping, Commodities and Attachments” sections. After entering the information, click on the “Submit Application” button and the application will be sent to the inspector office that you selected.
• Upon receipt of the application, the local inspector will contact you to set up a date and time to inspect and certify your plants or plants products.
• The inspector will provide a phytosanitary certificate to you when the plants/products pass the inspection. The certificate is normally valid for 30 days after the inspection date and the original should accompany the shipment.
• If you have any questions or need additional information, be sure to contact your FDACS DPI inspector for assistance and guidance.
Florida Small Business Development Center Network (FSBDCN
The FSBDCN in partnership with organizations like UF/IFAS can help small farmers with the technical assistance needed to ensure the viability of the farm business while meeting the challenges of tomorrow.
The FSBDCN has developed the knowledge and resources to assist small business owners in developing and executing international trade strategies. Through one-on-one consulting, training and workshops, customized research, and access to a network of trade professionals, we provide clients with the tools to successfully and profitably navigate the world of international trade.
Training and Services
• Farming for Profit: Growing Your Bottom Line
• Succession Planning for Family Farms
• International Trade: The Basics
• International Trade Certificate Program (6 sessions)
• Custom International Market Demand Research
• NO COST One-on-One consulting
https://www.sbdc.unf.edu/
SUSTA
The Southern U.S. Trade Association is a regional trade group of the U.S.D.A. It was created to assist U.S. companies based in the Southern U.S. and Puerto Rico in promoting their U.S. produced agricultural commodities.
SUSTA Region
Market Access Programs
• Brand Promotion
– Direct financial assistance of up to $300,000 per year
– Promotes your brand internationally
– Graduation requirement
• International Marketing Program
– Events managed by activity managers • https://directory.susta.org/events
– Subsidized trade mission/event participation
– Business “match-making”
– Chefs/interpreters provided as necessary
Brand Promotion
• Reimburses up to 50% of some international marketing and promotion expenses. Examples:
– Eligible tradeshows
• Exhibit costs
• Travel to international shows
– In-store demonstrations and displays
– Promotional items
– Required label/packaging changes
• Requests of $2,500 - $300,000
– First year applicants with no export experience – maximum request of $25,000
– First year applicants with prior export experience – maximum request of $50,000
Brand Promotion • Eligibility requirements
– Be “small” per Small Business Administration guidelines, or be a farm cooperative
– Export a product that is at least 50% U.S. agricultural origin by weight
– Have sufficient uninterrupted supply for international buyers
– Market a product under a brand name
– Label the product as "Product of the USA" or "Made in the USA"
• May use “Fresh From Florida” or “From Florida USA”
• Pre-Qualification form
• Application information – North American Industrial Classification System Code
– Dun & Bradstreet number
– Total sales figures
– Brand names/products
– Country information
– Must provide tax returns
• $250 application fee
• Upon approval, 6% administrative charge of amount requested
Apply Annually for Brand Promotion
International Marketing Program
• Trade missions (inbound and outbound)
• Trade shows
• In-store promotions
• Market research
• Trade seminars
• Hotel and restaurant promotions
• Marketing campaigns
• Long-term initiatives
International Marketing Program
• Create a profile on SUSTA website
• Pre-Qualification form
• Select an event from SUSTA Events page
• Register for the event online
• No graduation requirement
• www.susta.org
1) Sign into MySUSTA to access 2015 Pre-qualification
• 2) Complete 2 page • Pre-qualification form
• 3) Once application has been processed and if approved, you can start registering for 2015 events
Success!
Florida Horticulture Company Continues Growth in Canada
In October 2014, representatives from a Homestead, Florida-based company traveled to Montreal, Canada to exhibit in the SUSTA pavilion at the Fédération Interdisciplinaire de l’Horticulture Ornementale du Québec (FIHOQ). The Southern United States Trade Association (SUSTA) sponsored the pavilion through the Market Access Program (MAP) Generic. At the event, the Florida company booked $200,000 in sales, and future sales as a result of this show are expected to be $250,000 over the next 12 months. They also identified three likely new distributors.
Upcoming Events in the Middle East
• 2015 SIAL Middle East
– December 7-9, 2015
– Abu Dhabi, United Arab Emirates
• 2016 Gulfood – February 21-25, 2016
– Dubai, United Arab Emirates
Questions?
Florida Department of Agriculture and Consumer Services
Marisol Alvares [email protected]
Whitney Lett [email protected]
Steve Hildebrandt [email protected]
http://www.freshfromflorida.com/HowToExport
FSBDC at the University of North Florida
Katie Arroyo
www.sbdc.unf.edu
