“An often cited export sales statistic is that 95 percent of potential consumers are located outside of the U.S., so it’s a natural inclination to want to consider international sales,” said Molly Burns, program manager for Food Export – Midwest, a nonprofit trade organization that works with producers across the U.S.
During an SFA In the Know webinar, Monday, Burns spoke about the benefits of exporting and how Food Export can help businesses start or expand their export efforts.
One of the main reasons for U.S. food producers to export their products is to reduce risk, explained Burns.
“When you sell both domestically and internationally, if any one country experiences a downturn, you have other markets to help,” she said. “It’s a great opportunity to create stability in your company, and growth as well.”
In addition, American producers have a competitive advantage over other countries, explained Burns, noting that the U.S. brand is quite strong overseas.
To help ease the barrier to exporting, the U.S. has invested in a couple dozen trade agreements with other countries that help to lower or eliminate the tariffs you would pay to sell your product to another country. These reduced tariffs allow producers to offer their products at a more competitive price, said Burns.
One of the ways that Food Export helps U.S. food makers is through its Market Promotion Branded Program, which reimburses companies up to 50 percent of export marketing expenses. All of the reimbursable activities are approved in advance, though the company incurs all expenses up front.
Burns shared that eligible activities include general promotional activities, promotional or giveaway items, product demonstrations and merchandising, social media campaigns, website development, public relations, packaging and label modifications, and freight for sample shipments.
Related: SFA Blog: Promotion Terms to Know; What to Know About Product Placement in Film and TV.