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Also in this issue: Ten States Comparison of Exports Market Access Program for Food Products Rerouting Upper Midwest Food Exports Exporting Wisconsin Cheese to the EU. Paris, Here We Come! Exporting Wisconsin Cheese to the EU. Paris, Here We Come! Wisconsin’s Sartori Company CEO, Jim Sartori International Business News February 2014

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Also in this issue:Ten States Comparison of ExportsMarket Access Program for Food ProductsRerouting Upper Midwest Food Exports

Exporting Wisconsin Cheese to the EU.Paris, Here We Come!Exporting Wisconsin Cheese to the EU.Paris, Here We Come!

Wisconsin’s Sartori Company CEO,Jim Sartori

International Business NewsFebruary 2014

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Held & Associates Inc.

Commerce Bank, Priority Logistics

Exporting Wisconsin Cheese to the EU

Ten States Comparison of Exports

Transimpex

Rerouting Upper Midwest Food Exports

Heartland Shippers Coming to Kansas City

Satori Cheese, continued / New AFR Regs

About IBNewsMag

Heartland Shippers Conference

IBNewsmag TM: in this issue

Pictured above is Sartori’s Sam Allison (C) with two demonstrators at last October’s ANUGA food expo in Germany. It was this trade show that set the stage for the company’s BellaVitano cheese brands to break into the EU market.

COVER STORY: Sartori’s premium cheese, BellaVintano, is making its debut into the Euro market, and possibly even into Paris. See page 4

page 3February 2014

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ou bet there are challenges, but one

Wisconsin dairy food company is finding its way into Euro food markets with one of its specialty cheeses.

The company is Plymouth, Wiscon-sin’s Sartori Company, which pro-duces and sells a complete line of spe-cialty cheeses throughout Wisconsin, the US, and now to other countries as well. Although it has exported to Canada for a decade, last year it signed on with a German cheese distributor, and sells Sartori’s original BellaVita-no® premium cheese to food markets and specialty stores in Germany.

Next up? France!!

Sam Allison, Sartori Export Manager, said, “We exhibited at the ANUGA food show in Cologne last October, which gave us a start in the European market. This October the major Euro-pean food expo shifts to Paris, as the SIAL show, where we’ll have a good opportunity to get our products into the French markets. Maybe even in Paris food stores.”

Helping with international marketing and promotional expenses, the USDA Market Access Program (MAP), Branded Program (see accompanying description), is a significant boost for Sartori in its export outreach. No dis-guising its brand as possibly Italian, the Sartori brand name is clearly la-beled, “Made in America,” one of the requirements for MAP funding.

Sartori belongs to the US Dairy Ex-port Council (USDEC), an indepen-dent non-profit membership organi-zation, which helps pave the way with critical market research and other

forms of export business development for American dairy companies.

Citing 2013 figures compiled by US-DEC, US dairy suppliers picked up global market share, up 19% from 16.1% share in 2012. US cheese ex-ports grew 22% to a record 316,558 tons in 2013, up 25% from the pre-vious year, according to USDEC fig-ures. The biggest export markets have been Mexico and several Asian coun-tries including China.

According to data from the USDEC, one of the greatest EU barriers is the tariff barrier. On average, EU dairy tariffs triple US dairy tariffs. There-fore, eating into the Euro market re-quires use of some creative strategies.

For example, one of Sartori’s primary marketing strategies to gain entrance into the German market has been its successful use of product taste sam-pling in food stores. “Once consumers taste our cheese, they love it,” pointed

Y

Exporting Wisconsin Cheese to the EU. Paris, Here We Come!

IBNewsmag TM

February 2014page 4

IBNewsmag TMIBNewsmag

out Mr. Allison, “which stimulates consumer purchases. Although they are premium-priced cheeses here in the US, now with the dollar so cheap versus the euro, the prices there are more favorable for us.”

Cold chain shipping is simply a cost of doing business for dairy companies, and shipping refrigerated containers to Europe is no exception for Sartori. “We package our cheese in vacuum-sealed packs with the appropriate, translated labels. These go into corru-gated boxes, which are palletized and loaded into a refrigerated container. From here the container is trucked to Chicago, transloaded to rail, and off to an East coast port. There it’s loaded on a ship to Germany, clears customs and is trucked to our distributor.” said Mr. Allison. “It’s all pretty straight-forward.”

Regarding tariff barriers, Mr. Allison reports, “Tariff barriers have not been a big problem for us in working with our German distributor. It’s more the non-tariff barriers that tend to hinder product growth there.”

One such barrier is a proposed ban on common names such as parmesan, feta, gouda and provolone, which ac-cording to EU officials are based on European geographical indications (GI). “We are fortunate in that al-though our BellaVitano is our “com-mon” name, there is no GI in Europe with that name,” he pointed out. “On the other hand, it does prevent us from exporting our own parmesans and other common name cheeses to the EU.”

“The EU rule of thumb seems to be that if a name can be traced back to originating in Europe at some point

MAP Branded Program Helps Heartland Ag and Food Companies Export

The Market Access Program (MAP), Branded Program, is a collaboration of the US Department of Agriculture (USDA) and Food Export Midwest. It helps Midwest food and ag companies export by allocating 50% cost reimbursement for a wide variety of international food and ag marketing activities including:

• Package and label modifications

• Advertising

• In-store promotions and

product demonstrations

• Fees for exhibiting at some

overseas tradeshows and selected

tradeshows held in the US

• Public relations

• Marketing and point-of-sale

materials

• Freight cost for samples (Only small companies, as defined by the U.S. Small Business Administration [under 500 employees] and agri-cultural producer cooperatives are eligible to participate.)

For complete information, www.foodexport.org,

Branded Program

then they should be the only ones al-lowed to use that term,” said Shawna Morris, VP of Export for the USDEC, who was in Madison, Wisconsin this month to update state dairy farms on trends affecting exporting. “We have a more common-sense perspec-tive that many of these names long, long ago became generic not just in our country but in a number of coun-tries around the world. For them to now declare that nobody else should be using them is a blatant barrier to trade that is designed to hinder com-petition.”

This purported barrier not only affects cheese manufacturers, but restaurants and other food enterprises that would use these common cheese names in the EU. US Agricultural Secretary, Tom Vilsack is leading the charge along with US Trade Representative, Michael Froman, to prevent this from being a deal-breaker for the forthcom-ing Transatlantic Trade & Investment Partnership (TTIP) between the US and the EU.

Sartori, now in its 75th year of cheese-making, has not only long supported US cheese manufacturers in trade is-sues, but also supports local and re-gional social issues such as support of Midwest Athletes Against Childhood Cancer, Make-A-Wish Foundation, continued on page 10

Shawna Morris, VP - Trade PolicyNational Milk Producers Federation &

U.S. Dairy Export Council

page 5February 2014

IBNewsmag TM

February 2014page 6

$ -0.5

$ -0.7

$ +0.8

$ -0.1

$ -1.0

$ -0.1

$ +0.3

$ -0.6

$ -0.0

$ -0.0

5.3 5.2 5.6 7.6 7.1

9.0 10.9 13.3 14.6 13.9

8.9 9.9 11.6 11.7 12.5

15.5 18.9 20.7 20.8 20.7

9.5 12.9 14.1 13.9 12.9

4.9 5.8 7.8 7.5 7.4

4.4 5.3 6.2 6.6 6.9

2.1 2.5 3.4 4.3 3.7

1.0 1.3 1.5 1.6 1.6

16.7 19.8 22.0 23.1 23.1

REGIONAL TOTALS $111.7 $109.8 $ - 1.7

$ change2013-20122009 2010 2011 2012 2013

Exports by State (Billions of dollars)

Arkansas

Iowa

Kansas

Minnesota

Missouri

Nebraska

Oklahoma

N. Dakota

S. Dakota

Wisconsin

2013 Heartland Merchandise Exports Take a FallAccording to figures released in February by the International Trade Administration (ITA), exports of goods from our ten state region dropped nearly 2% in 2013 from those of 2012. Kansas and Oklahoma bucked this trend by showing gains. Shown are state-by-state five-year totals from 2009 in millions.

Meanwhile, total 2013 US exports increased nearly 2% rising to a record high of $1.6 trillion.

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“If the exporter wants to ship by container from here, often the most cost efficient way is to use the CP or the CN railroad because they have a route allow-ing them to go from the Twin Cities, or the Wisconsin area, around Chicago, to Montreal through Michigan on one rail-road for loading on the ocean carrier,” said Mr. Abbe.

“To get to other East coast US ports from the upper Midwest typically requires the container to go on two different railroads, he pointed out, and in some cases have to be pulled from one train, drayed through Chicago by truck, and then transloaded

outing food and ag containers through

Chicago presents some cost barriers for some departure points because of Chicago congestion.

According to Bruce Abbe, Ex-ecutive Director of the Midwest Shippers Association based in Bloomington, MN, there are some alternatives to exporting ag and food shipments from the upper Midwest. This region in-cludes the Dakotas, Minnesota and Wisconsin.

R on another railroad, resulting in higher costs.”

Even better for ag exporters, there are some new rail con-nections through to Kansas City, which allows them to get to Norfolk without having to switch lines.

As an association, we’re also in-terested in seeing how we can reignite some grain products ex-port shipping from inland Great Lakes ports - a feeder service out to transload locations for ship-ment to Europe, along with the Middle East, and North Africa.You can learn more by contactingMr. Abbe at 952-253-6231. www.midwestshippers.com

Rerouting Upper Midwest Ag and Food Export Shipments to the EU

IBNewsmag TM

February 2014page 8

International Business News

page 9February 2014

Heartland Shippers Coming To Kansas City May 13-14Several hundred professionals who control the movement of global freight in and out of America’s Heartland will be attending the 3rd Heartland Shippers Conference in Kansas City, May 13-14 at the InterContinental Hotel on the Plaza.

The Midwest is home to major manufacturing, agriculture, and a significant consumer market of over 66 million. Conversely, getting cargo in and out of the nation’s heartland is a complex, dynamic effort, as the Heartland Shippers’ Conference will address themes pertinent to the global supply chain’s vital connection to the region and its developing infrastructure.

Speakers at the conference will include top-level executives from organizations that include Hall-mark, Kansas City Southern, SeaLand, BNSF, Boehringer Ingelheim, SB-B Foods, US Commer-cial Service, the KC Animal Health Corridor supply chain, and many others.

Dynamic networking opportunities include Cargo Business News’ popular Collaboration Dinners held in fine eateries conveniently located throughout Downtown Kansas City, receptions, and a tour of the Kansas City Southern IFG Intermodal facility, offering plenty of opportunities to meet and mingle with customers, prospects and service providers.

The Heartland Shippers Conference is presented by Cargo Business News and the International Trade Council of Greater Kansas City, and supported by several other U.S. Midwest trade/shipper orga-nizations, including IBNewsmag.

For more information, go to www.cargobusinessnews.com/heartlandshippers.

or Rick Held at 816-842-6701. You can also reach him by email,[email protected].

Japan’s Advance Filing Rules add to Ocean Complexities

“Wisconsin cheese to EU” continued

college scholarships and others.

International Trade Association (MITA) President, Jen Pino-Gallagh-er said, “Sartori  is one great example of a Wisconsin cheese company be-coming a global supplier.  Exporting any agricultural product to the EU is a challenge not to mention the many hurdles hampering cheese exports. It’s encouraging to see a Wisconsin cheese company gaining a foot-hold in the European market.”

For more information visit www.sartoricheese.com

Jen Pino-Gallagher. President – Madison International Trade Asso-

ciation (MITA) and Bureau Director, Agricultural Market Development,

Wisconsin Department of Agriculture, Trade and Consumer Protection.

Mr. Held noted that this will add USD 25 per bill of lading.

This Japan24 rule will be mandatory as of March 10, 2014. Because of the short lead time and complexity of data required, you should contact your FF,

Japan Customs Authority is introducing new regs as they relate to the already mandatory advance filing rules (AFR) as of March 1, 2014.

According to Rick Held, President of Held & Associates freight forwarder and customs broker, “this new regulation requires shippers and NVOCCs to electronically file information on ocean containers to be loaded on a vessel to Japan – or transshipped through Japan – at least 24 hours prior to vessel departure from port of loading.”

IBNewsmag TM

February 2014page 10

Sartori Cheese,Celebrating 75 years of cheesemaking.

International Business News

page 11February 2014

ABOUTIBNewsmag TM

Now in our 10th year of continuous publishing by InterMark3, Inc., IBNewsmag is an independent online magazine for Heartland trad-ers - small to medium-sized enterprises (SMEs) - to keep them current on compelling developments affecting exports and other international business developments.Beginning with this edition, we welcome many new readers from Wisconsin, members of the Madison International Trade Association (MITA), headed by its president, Jen Pino-Gallagher. It is appropriate that we report on a Wisconsin cheese company – Sartori Foods – to headline our food/ag export issue.In every issue, and on our website – www.IBNewsMag.com – we’ll bring you the latest international BREAKING NEWS – current news items that may affect your international business and of a regional in-terest for our Heartland region readers. In addition to special events, we will announce SME company news as appropriate. So feel free to send your editorial suggestions and news releases.. Email them to:[email protected].

IBNewsmagTel 816.210.8320Fax 816.472.0959

6655 Troost Ave.,Kansas City, MO 64131, USA

In God we trust!

PUBLISHER/EDITOR:Frederick Baehner

EDITORIAL ADVISOR: Carla Cook

ADVISORY BOARD:Doris Ganser, Jo Anna Edgerton,

Paul Mastilak

DESIGN: Tom Gilland,

www.GillandGraphx.com

Frederick Baehner

Nearly all successful international business decisions are based on accurate information

These include alerts on:• Business Intelligence• Competitive profiles• Distribution & marketing strategies

InterMark3, Inc., the Midwest leaderin international business development.Email Fred Baehner today for a no-cost [email protected], or Tel 816.210.8320

www.InterMark3.com www.IBNewsMag.com

Giving You the Tools You Need to MakeBetter International Trade Decisions

CARGO BUSINESS NEWS PRESENTSHEARTLAND

SHIPPERSTHE

CONFERENCE

May 13-14

2014InterContinental

Kansas City at the PlazaKansas City, MO

All roads lead to...

Kansas City

Don’t miss the 3rd Heartland Shippers Conference in Kansas City May 13-14, that will bring the shipping and logistics world to the U.S. Midwest!

Register online here.

You can view the 2013 Heartland Shippers Conference by clicking here.

You can view the 2014 Agenda by clicking here.

Sponsorship opportunities are here.

Quick facts:Where: The Midwest intermodal hub of Kansas City

When: May 13-14, 2014

Who: The Heartland Shippers Conference is presented by Cargo Business News and the International Trade Council of Greater Kansas City, and supported by several other U.S. Midwest shipper organizations.

Why: The U.S. Midwest is home to major manufacturing, agriculture, and a significant consumer market of over 66 million. The Heartland Shippers’ Conference will address themes pertinent to the global supply chain’s vital connection to the region and its developing infrastructure.

Dynamic networking opportunities include Cargo Business News’ popular Collaboration Dinners held in fine eateries conveniently located throughout Downtown Kansas City, along with receptions and opportunities to meet and mingle with customers, prospects and service providers.

Primary conference demographic: Midwest beneficial cargo owners (BCOs) and those who service them globally.

For speaking and sponsorship opportunities:

Contact Peter Hurme at: 206.709.1840 ext. 233 – [email protected] - for more information.

Kansas CityKansas City

www.cargobusinessnews.com/heartlandshippers

CARGO BUSINESS NEWS PRESENTSHEARTLAND

SHIPPERSTHE

CONFERENCE

May 13-14

2014 InterContinental Kansas City at the PlazaKansas City, MO

All roads lead to...

Kansas City

Don’t miss the 3rd Heartland Shippers Conference in Kansas City May 13-14, that will bring the shipping and logistics world to the U.S. Midwest!

Register online here.

You can view the 2013 Heartland Shippers Conference by clicking here.

You can view the 2014 Agenda by clicking here.

Sponsorship opportunities are here.

Quick facts:Where: The Midwest intermodal hub of Kansas City

When: May 13-14, 2014

Who: The Heartland Shippers Conference is presented by Cargo Business News and the International Trade Council of Greater Kansas City, and supported by several other U.S. Midwest shipper organizations.

Why: The U.S. Midwest is home to major manufacturing, agriculture, and a significant consumer market of over 66 million. The Heartland Shippers’ Conference will address themes pertinent to the global supply chain’s vital connection to the region and its developing infrastructure.

Dynamic networking opportunities include Cargo Business News’ popular Collaboration Dinners held in fine eateries conveniently located throughout Downtown Kansas City, along with receptions and opportunities to meet and mingle with customers, prospects and service providers.

Primary conference demographic: Midwest beneficial cargo owners (BCOs) and those who service them globally.

For speaking and sponsorship opportunities:

Contact Peter Hurme at: 206.709.1840 ext. 233 – [email protected] - for more information.

Kansas City Kansas City

www.cargobusinessnews.com/heartlandshippers

CARGO BUSINESS NEWS PRESENTSHEARTLAND

SHIPPERSTHE

CONFERENCE

May 13-14

2014 InterContinental Kansas City at the PlazaKansas City, MO

All roads lead to...

Kansas City

Don’t miss the 3rd Heartland Shippers Conference in Kansas City May 13-14, that will bring the shipping and logistics world to the U.S. Midwest!

Register online here.

You can view the 2013 Heartland Shippers Conference by clicking here.

You can view the 2014 Agenda by clicking here.

Sponsorship opportunities are here.

Quick facts:Where: The Midwest intermodal hub of Kansas City

When: May 13-14, 2014

Who: The Heartland Shippers Conference is presented by Cargo Business News and the International Trade Council of Greater Kansas City, and supported by several other U.S. Midwest shipper organizations.

Why: The U.S. Midwest is home to major manufacturing, agriculture, and a significant consumer market of over 66 million. The Heartland Shippers’ Conference will address themes pertinent to the global supply chain’s vital connection to the region and its developing infrastructure.

Dynamic networking opportunities include Cargo Business News’ popular Collaboration Dinners held in fine eateries conveniently located throughout Downtown Kansas City, along with receptions and opportunities to meet and mingle with customers, prospects and service providers.

Primary conference demographic: Midwest beneficial cargo owners (BCOs) and those who service them globally.

For speaking and sponsorship opportunities:

Contact Peter Hurme at: 206.709.1840 ext. 233 – [email protected] - for more information.

Kansas City Kansas City

www.cargobusinessnews.com/heartlandshippers