SUSTA ~ Southern United States Trade Association

About Us

Newsletter
(Insight)

E-Newsletter
(SUSTA News)

Press Room

INsight
SUSTA's INsight newsletter is published quarterly.

Summer 2010 INsight excerpts

Chile Ripe for Southern U.S. Imports
New Eligibility Requirement for Generic Participants
Act Now: Branded Funding - Still Available for 2010
MAP Branded 2011 Application Opens August 1
South to Southeast: Retail Opportunities in Thailand

January/February 2010 INsight excerpts

November/December 2009 INsight excerpts

Chile Ripe for Southern U.S. Imports

For those looking toward Latin America’s import potential, Chile is the premier gateway market to the continent. The country has embarked on a fierce reconstruction plan after February’s earthquake, and because of its sound government and stable economy, Chile is expected to make a full recovery. A BusinessWeek article published in April reported Chile’s economy is expected to grow by 4.5% this year, and its domestic demand is forecast to increase 12.4%. Chile’s population has the highest per-capita income in South America, an increasingly urban population, and growing consumer spending. The country is known for its mining exports, wine production and agricultural exports, but it also has a greater than average concentration of retail chain stores eager to expand their selections.

While Chile derives US$4 billion from agro-based exports, its imported food industry is thriving. Continued economic growth will increase the average household’s disposable income and create greater demand for imported specialty items and brands. Domestic fruit and vegetable markets are abundant, but with a population of 16 million people and expected GDP per-capita rise of 41.3% over the next three years, opportunities for value-added and processed foods are plentiful. The short-term GDP slowdown caused by the earthquake may be the perfect opportunity for U.S. exporters to take products to Chile.

This market is a good prospect for imports of easy-to-prepare meals, high-value prepared foods, processed meat, and more. The market for processed (packaged) foods doubled from 2004 to 2008 and still shows continued growth. Most Chileans live in suburban/urban areas, and dual income households are prevalent. The average Chilean spends 20% of household income on food, drinks and tobacco, making the majority of all food purchases from supermarket stores. This environment makes ready meals, processed meats, and specialty items sought-after commodities.

Chile’s reputation for sound governance and fiscal responsibility has made its business environment favorable for long-term investment and growth. Chile’s economy is fueled by trade, and while U.S. agricultural products face competition in the market, they carry a strong reputation for quality and pricing differentiation.

Making opportunities more competitive for southern U.S. imports are the U.S.-Chile Free Trade Agreement (2004) and the weak U.S. dollar. Competition exists with European imports, but southern U.S. imports have significant shipping cost advantages as well as reduced transit time. Chile has trade agreements with neighboring countries and regional trade affiliations, such as Mercosur, as well as FTAs worldwide.

According to a USDA GAIN report, Chilean consumers are extremely brand-oriented, and in 80% of cases, this determines purchase decisions. While reputation and brand equity justify higher prices, local substitutes are often of near or equal quality. For this reason, marketing and intensive sampling programs to establish brand loyalty are important. Consumers identified health, quality, and convenience as the three most valued aspects of their food purchases.

Latin America has long-standing trade relations with the southern United States. Companies in the southern U.S. looking to export to South America should consider the stability, market size and growth potential that Chile offers for their products. For more information on Chile and SUSTA activities, like our upcoming trade mission, visit www.susta.org/events.

~By Page Portas, SUSTA Intern

New Eligibility Requirement for Generic Participants

Companies registering for upcoming Generic promotions with SUSTA are required to complete a Pre-Qualification form to ensure that they meet federal and organizational guidelines to participate in our programs. Effective June 2010, companies must now meet an additional requirement, as well as the criteria already in use, to qualify as Generic event participants. Businesses that are applying for SUSTA programs for the first time must have at least $100,000 in total annual sales in order to participate. Companies must also promote products under a brand name, and products must contain at least 50% U.S. agricultural ingredients to be eligible for activities.

If your company does not meet the sales threshold for participation in our programs, additional resources are available to help you focus on your export strategy. If you have any questions about these resources, or what is needed to qualify for SUSTA programs, contact our Marketing team at (504) 568-5986, or visit www.susta.org/services to learn more about how we can assist your international marketing efforts.

Act Now: Branded Funding - Still Available for 2010

There is still time to request Branded funding for the remainder of 2010! Whether your company is just beginning export promotions in the second half of this year or would like to request additional funds for new markets or activities, you can submit a 2010 Branded application to SUSTA. Visit susta.org/services/map_application.html to download the Pre-Qualification Worksheet and view the sample application.

Already a participant? You can submit an amendment to your application (APAR) to request more money for 2010. The amendment form is available online at www.susta.org/services/map_application.html and can be submitted directly to branded@susta.org

If you have any questions about the application or amendment process, call our Branded Department at (504) 568-5986 for assistance, or review frequently asked questions at www.susta.org/services/map_faq.html.

MAP Branded 2011 Application Opens August 1

Looking ahead to 2011? As you formulate your marketing plan, don’t forget a valuable resource – the Market Access Program Branded, which offers up to 50% reimbursement for promotional expenses such as trade shows, point of sale materials, advertising and more. Beginning August 1, SUSTA will accept applications for the upcoming year. Requesting Branded funds for your company’s international marketing activities is as easy as 1-2-3:

1. Download the Pre-Qualification Worksheet from our website (www.susta.org/services/map_application) and answer the questionnaire.

2. Email your Pre-Qualification to branded@susta.org for our Branded Department to determine whether your company qualifies for the program.

3. Once your Pre-Qualification Worksheet has been approved, you will receive the Branded Application from our staff. Email the application as a Word document to deneen@susta.org, and mail it to our office, along with the $250 application fee. For returning participants, the 2011 application has been reorganized to make it easier to enter your product information and country marketing plans. Companies can request anywhere from $2,500 to $300,000 in marketing funds for the year, depending on export experience and past participation in the program. For more information about eligibility and program details, visit www.susta.org/services/map.html.

South to Southeast: Retail Opportunities in Thailand

Exporters looking to the Asia Pacific region should consider Thailand’s potential as a market for food products. Thailand continues to enjoy a reputation as an easy market to do business in the Asia Pacific region due to its open, market-oriented economy and long-term growth potential. According to a USDA GAIN report, the country’s annual real GDP growth is expected to reach 4.3% in 2010.

For the second year, the country ranked 12th out of 183 economies in the World Bank's Ease of Doing Business index in 2010. In addition, Thailand's consumer market has good growth potential due to a young, growing middle-class population and a rising per capita income. Almost 65 million people inhabit the country, of which 70.3% are between the ages of 15 and 64.

The retail market currently accounts for more than 70% of total food spending in Thailand. Growth in tourism has increased the number of retail businesses, hypermarkets, supermarkets, shopping malls, convenience stores and more. Approximately 14 million international tourists visit Thailand every year, staying between one and two weeks on average.

SUSTA plans to include Thailand among the many international markets where Generic promotions will take place in 2011. Visit www.susta.org/events to see where more upcoming activities are headed, and watch for our 2011 Events Calendar this fall, which will include a list of all the Generic events SUSTA is planning for the coming year. Request your copy at www.susta.org/2011events.html, or contact Marketing at (504) 568-5986 to add your name to our mailing list.

~By Ashley Millet

Disclaimer | Webmaster: webmaster@susta.org