In spite of the swine ‘flu epidemic and disagreements over border issues, Mexican importers, retailers and consumers continue to relish the taste of California cling peaches. Exports to Mexico in 2008 showed a 17.96 percent increase in terms of value from the prior year with total market share growing from 13.02 percent in 2007 to 22.55 percent in 2008 even with the increase in the rate of the U.S. dollar to the Mexican peso. CCPB’s activities funded through the Market Access Program are credited by the trade for achieving this success.

This document tells of the expansion of the U.S. hide and skin international exports.

Ocean Sky, an El Salvador-based apparel manufacturer, has switched its sourcing to include more U.S. cotton fabric and also found a new retail customer after participating in COTTON USA Sourcing Program events.

The COTTON USA Fashion Design Challenge in Thailand in 2008 proved itself as an increasingly powerful PR tool for U.S. cotton, generating $1.8 million in earned advertising value (EAV) while heightening consumer awareness of the fashionable side of cotton and COTTON USA. This third annual design competition for fashion students advocated young designers to support the Thai textile and garment industries and U.S. cotton.

Consumers in Taiwan can now stay even more comfortable in cotton clothing, thanks to collaboration between Cotton Council International (CCI), its COTTON USA licensees and Cotton Incorporated implementing new moisture management technology into T-shirts.

Major French-European Canning Company Visits US dry bean growing regions

US Dry Bean Council ASEAN 2009 Success Stories

USDBC Invited to Take Part in the Second Annual School Feeding Roundtable Enhancing School Feeding Effectiveness, Impact and Sustainability

CCI’s 14th annual Cotton Day celebration in Japan, a public relations fete featuring COTTON USA Mark branded consumer events and executive interviews, was the most successful to date in communicating U.S. cotton’s advantages to consumers.

Natural U.S. cotton took center stage in China as CCI’s groundbreaking COTTON USA “Natural World” campaign used celebrity endorsements and multi-media promotional events to increase awareness of, preference for and consumption of U.S. cotton.

The TV Osaka network broadcast a documentary highlighting U.S. cotton throughout Japan in February 2009, leading seven new companies to join the COTTON USA Mark licensing program and three existing licensees to add eight new product lines.

Algodonera Sudamericana S.A., a Peruvian mill, stopped sourcing cotton exclusively from local sources and now annually uses about 13,000 bales of U.S. cotton valued at $3.2 million.

Since CCI launched the COTTON USA Sourcing Program in 2000, amidst preferential trade legislation, the Western Hemisphere has consistently ranked in the top three export markets for U.S. cotton. In 2008, the Western Hemisphere consumed more than 6.0 million bales of U.S. cotton in various forms—including fiber, yarn and fabric exports—valued at $4.7 billion.

COTTON USA licensee Tennis S.A., an important Colombian producer of knit and woven garments, increased its usage of U.S. cotton after receiving technical assistance from CCI and Cotton Incorporated that improved its manufacturing process.

CCI’s Bogotá office generated free press worth $475,000 following the release of results from the Colombian edition of the 2008 Global Lifestyle Monitor (GLM), a biennial survey of consumers’ clothing preferences and shopping habits.

In 2005, an influential Colombian miller was using only Canadian durum wheat because it believed pasta made from U.S. durum semolina was too dark to meet quality requirements. FAS cooperator U.S. Wheat Associates (USW) proposed a Quality Sample Program (QSP)to ship a sample of U.S. durum to the mill and to hire a consultant who identified that the problem was not the U.S. durum. The program changed perceptions and the mill purchased U.S. durum.

Funds made available under PL480, Section 108, have been instrumental in helping U.S. Wheat Associates use technical service outreach to build demand for U.S. wheat in such developing countries as Algeria, Morocco and Tunisia.

U.S. Wheat Associates (USW), supported with FAS program funds and working collaboratively with FAS and with other U.S. grain export development organizations, hosted two seminars in Egypt that laid the foundation for increased U.S. wheat exports to the region. The increased value generated by the increase in wheat sales was more than $864 million in 2007/08.

USW has developed a strong partnership with the Taiwan milling and baking industry and USW has increased its marketing efforts there. In June 2007, TFMA signed a letter of intent that specifies a commitment to buy 1.7 MMT of U.S. wheat over two years, including 60 TMT of HW this year and 90 TMT of HW in 2009 mainly for use in noodle and steam bread flour.

In 2005, an influential Colombian miller was using only Canadian durum wheat because it believed pasta made from U.S. durum semolina was too dark to meet quality requirements. FAS cooperator U.S. Wheat Associates (USW) proposed a Quality Sample Program (QSP)to ship a sample of U.S. durum to the mill and to hire a consultant who identified that the problem was not the U.S. durum. The program changed perceptions and the mill purchased U.S. durum.

Algodonera Peruana S.A.C, the 7th largest spinner in Peru, increased its consumption of U.S. cotton from 5 percent of its total cotton purchases to 60 percent following participation in COTTON USA events.

The U.S. Grains Council and the Foreign Agricultural Service’s Cattleman’s Bank in Egypt has recently garnered additional financial support from the Egyptian government, turning the project into a $130 million operation. The Council and the Buffalo Producers Association, a non-government organization which is the custodian of the fund, have convinced the Egyptian government to double the size of the loan per head of buffalo thus eliminating the threat of decreasing U.S. grain imports.

In March 2009, The Catfish Institute (TCI) used MAP funds to partner with retailers on a series of retail flyer advertisements tied into extensive media coverage reaching a large Canadian audience. To spark consumer interest, the flyer advertisements featured U.S. farm-raised catfish at $1-$2 off its regular price in three top retail chains in Ontario: Loblaws, Sobeys and Metro. Simultaneously, articles on U.S. farm-raised catfish appeared in numerous media including Canadian Living and Homemaker’s magazines, the Canada AM talk show and Chef at Home cooking show on Food Network Canada, CTC.ca, and the Canadian Living e-newsletter, which together reached over 3.3 million consumers. TCI’s in-store promotions backed up with media coverage resulted in an average increase across all three retailers of 300 percent in volume and over 100 percent in value above comparable periods without promotion. Sales for the three chains totaled 7,060 pounds during their week-long promotions. The supermarkets’ sales value totaled about $53,400 for an investment of $7,500 to support the promotion, a return of over 7:1 on the MAP expenditure. The substantial sales gain underscores the effectiveness of TCI’s integrated retail and public relations program. Moreover, TCI’s strategy reinforces the long-term retail relationships needed to grow the Canadian market for catfish.

Japan, the biggest customer for the U.S. feed grains industry, has imported 501,000 metric tons of feed barley; 16.6 million metric tons of corn; and 108,333 metric tons of distiller’s dried grains with solubles from the United States in the 2007/2008 marketing year. The U.S. Grains Council estimates that roughly half the feed grains shipped to Japan from the United States are destined for Japan’s vibrant poultry sector.

Using MAP funds, the USPB waged an effective public relations campaign in Japan that greatly expanded the program’s reach.

The Loaf, an upscale bakery in Malaysia, recently launched seven different baked products for a promotion starting in June 2009, as a result of the Quality Samples Program and one-on-one meetings with USPB.

The USPB’s Hong Kong school education campaign continued to build a positive image for U.S. potatoes among current and future consumers by teaching them how to include potatoes in a healthy diet.

Market access works hand-in-hand with seed marketing efforts in the USPB program.

By focusing on new and innovative uses for U.S. frozen potatoes, the USPB has increased the role potatoes play on menus throughout Japan.

In-store promotions with five retail chains in Singapore during 2008/2009 hiked consumer purchases of U.S. potatoes and expanded the variety offerings at participating stores.

As a result of USPB activities, the varieties of U.S. seed potatoes available to Nicaraguan importers have expanded.

Despite the downturn in the world’s economy, the USPB’s frozen program continued to deliver a strong return on investment for growers in the July 2008—June 2009 marketing year. The value of U.S. frozen exports to the USPB’s target markets climbed 7% to reach $494 million, while volume rose to 530,208 MT.

U.S. exports of fresh potatoes to target markets for chip-stock grew 9% by volume to 17,334 MT and 16% by value to $6.7 million in marketing year 2008/2009.

During the July 2008—June 2009marketing year, the USPB conducted activities in Uruguay, the Dominican Republic, Sri Lanka and Nicaragua.

U.S. potato and product exports reached a record $1.2 billion for the July 2008—June 2009 marketing year.

Using MAP funds, CAC taps into the Swiss liking for California jumbo asparagus. FNG magazine ran a five page article on asparagus highlighting California’s jumbo product. Retail promotions with the GLOBUS delicatessen were a great success with sales increases of 8.9 percent during the period of promotional activities over the prior season—3,606kgs sold in 2008 and 3.930kg in 2009. Promotions were held in Basel, Bern, Lucerne, Laussane and Geneva. The VOLG Konsumwaren AG chain of “small corner shops” increased its sales of California jumbo asparagus again during the 2009 season by 25.53 percent selling 13.62 metric tons. Imports of California asparagus from January through June 2009 totalled 1,552 metric tons.

Trade Shows work! CMI knows firsthand that participation in the U.S. Pavilion at FOODEX, Japan’s pre-eminent food and beverage show, bears fruit. This does not happen overnight but six years of a constant presence has brought about major results. A direct result from the 2009 show is that seven supplement producers placed orders for tart cherry concentrate in bulk. CMI’s past participation has encouraged several of its processors to participate with three attending in 2009. U.S. tart dried cherries are now being sold in fresh produce sections of Japan’s supermarkets. Plus, the largest over the counter marketer of herbal remedies now has four tart cherry tablets and capsule products under development. Trade show participation also has important side effects. March 2008 saw buyers from Korea, China and Taiwan placing orders for tart cherry products as a result of CMI being at FOODEX. CMI has witnessed an increasing shift in trade members showing specific interest in, and more importantly, utilizing U.S. tart cherries. These number over 30 prominent companies and range from a major supplement manufacturer to cosmetics firms, juice processors, condiment and sauce manufacturers, brewers of vinegar’s, bakers, cake and cookie manufacturers. Costco Japan now imports an estimated 33.5 metric tons of dried cherries from the U.S. In addition, CMI’s representative also estimates that there are between 2,000 and 3,000 websites selling U.S. tart cherry products. U.S. tart cherries are sold by pharmaceutical and nutraceutical firms plus supermarkets now feature them in their fresh produce sections, quite a precedent since this is not a usual area for dried fruits. Three of Japan’s largest beverage manufacturers are either marketing U.S. tart cherry beverages or are in the market development state. Shoreline Fruits, who attended the shows for a few years before actually having their own booth at Foodex this year, had actually developed sales along the way some to Japan but others to Taiwan, China and Korea. Some 60 or 70 inquiries, were received, about 25 of which were quite serious. This company signed with a major agent in Japan, which is now selling to firms throughout the country. Another longstanding contact, who has attended CMI’s technical seminars and trade shows in the past, is now in negotiations to source 2.5 metric tons of dried cherries per month for one of Japan's largest confectioners, who will be débuting a dried fruit bar for the growing healthy food sector here. This year, it has been three years in the making. 2.5 metric tons of product per month is a lot of dried cherries and translates into even more fresh cherries originally. ANECDOTAL EVIDENCE: Although CMI cannot verify the sales of tart cherries due to lack of H.S. codes, discussions with the trade note the following: 24,500 gallons of tart cherry concentrate valued at CIF $45-50 (225,000) were sold in 2008; 23,000 gallons sold to date in 2009 with 17 companies importing; Shopping channels (“Home Shopping” and “TV Shopping”) which broadcast nationally are featuring tart cherry products; CMI can verify that five pharmaceutical/supplement firms are using tart cherry products; “Tart” cherry has become a well established supplement product in Japan. It is estimated that 2,000 to 3,000 websites sell U.S. tart cherry products.

In 2008 and 2009 the California Strawberry Commission shifted its MAP funded trade development and retail promotions in Japan from frozen to fresh California strawberries with remarkable success. Through a combination of in-store promotions, sampling and demonstrations, along with a technical trade seminar focusing on category development and the health benefits of strawberries, the CSC helped major Japanese retail grocery chains see company-wide sales lifts of between 210% and 410% in 2009. Two examples demonstrate this success. After attending the CSC technical seminar in May 2009 and working with the CSC in-country trade representative, one international wholesale membership chain began to import, market, and promote CA strawberries for the first time ever in Japan. A CSC supported in-store sampling demonstration kicked off a 3-day chain-wide promotion in July. During that period the retail chain reported selling 1,527 cases of California strawberries at 9 stores; an increase of 260% after the first week of importing the fruit and an estimated residual sales lift of 210% over a month after promotions ended. In a produce management practice nearly unheard-of in Japan, another of the country’s largest retail grocery chains worked with the CSC trade representative to initiate a category management approach to California strawberries and began emphasizing steady sales promotions of the imported product. Starting in July and running for four months through October, the CSC supported the category management approach by implementing in-store sampling with the retailer. Having never promoted strawberries before October, nor taken this company-wide approach to its marketing of CA strawberries, the retailer estimates a nearly 300% lift in California Strawberry sales over 2008. Through July 2009, the California strawberry exports to Japan increased by 63% in volume and 26% in value over 2008 YTD. By extending the season of marketing promotions for California strawberries, and supporting these promotions through MAP funded trade seminars and in-store promotional support, the CSC has helped shift retail practices in Japan to secure the Japanese export market for an ever increasing supply of high-quality fresh California strawberries. Export Volume of Fresh California Strawberries to Japan, 2008-2009

Canada is the strongest market for the export of California canned peaches, fruit cocktail and U.S. Bartlett pears. As shown by the following export increases in program year 2008/09, CCPB saw shipments to Canada of canned peaches increase in value by 16.74 percent, fruit cocktail by 95.24 percent and U.S. Barlett pears by 90.54 percent over shipments in 2007/08. This represents a total value of $32,949,000 as against $19,597,600 the prior year. CCPB attributes this success to its participation in the Market Access Program. Utilizing that funding, in 2008/09, CCPB’s promotional activities resulted in promotions with five grocery chains in 470 retail outlets in the west and east of Canada. On the foodservice side, 33 promotions were held with SYSCO, Gordon Foodservice and Gordon/Neptune. Across Canada SYSCO purchases resulted in over 100,000 cases exported. In addition, CCPB worked with SYSCO on a number of promotional programs which resulted in being featured on the company’s own website which gave CCPB access to that organization’s customer base. This is the primary supplier to the foodservice industry across Canada. This relationship is a good example of what can occur as a result of inviting an individual to participate in one of the CCPB’s earliest trade tours, and continuing follow-up once the tour was over. Looking across the country, Pantry Shelf, a new supplier in the market was so impressed by the quality of the U.S. canned fruit purchased in 2008 that the company now plans to purchase over 40,000 cases in 2009. Overwaitea, the major retailer in Alberta, also contributed to the success with 80,000, cases bought. That company is set to run six promotions for California canned cling peaches in 2009/10 based on the success achieved in 2008/09. Not to be outdone, CanGro Foods also plans to purchase canned fruit from California. A key part of this success is attributed to the buyer tours that CCPB conducts every two years. The Canadian trade credit the tours for having just the right mix of educational visits to orchards where they meet the growers, canneries where they can talk with the processors and the grading stations. The latter stands out in the world of canning peaches since no other country has such a thorough grading process that guarantees fruit consistency in every can.

Washington Apple Campaign for wholesale and the traditional retail market in selected Indian Cities contributes to record breaking export shipments

The California Prune Board (CPB) partnered with Sunsweet Prunes, a U.S. prune cooperative, to expand the reach of California prunes in Italy to a younger target audience seeking healthier snacking options. The MAP supported advertising produced a year on year category volume growth during the promotional period of 13% (2008/09 vs 2007/08), a 21% growth in Sunsweet overall prunes volume during the same period and the new ‘Ones’ individually wrapped snack-sized product saw an 84% increase in sales during the same period.

To create mass awareness, 20,000 boxes each containing 50 Grams of California Prunes has been given as a promotional free gift with Baggry’s Muesli Pack. Baggry’s management has been so happy with the response that they are contemplating including California Prunes in their packs on a regular basis. This will mean an additional volume of 1MT per month.

The California Prune Board-Europe office worked with a major independent store group to ensure their private label stayed loyal to California. The resulting sales from the 330 stores during the funded promotional period showed an 18.7% increase in volume in phase one and a 58.4% increase in volume in phase two versus the same time frame the previous year.

CPB - China/HK led an importer and media delegation to California for education on California prunes and tours of orchards and processing plants. Convinced by the quality of California prunes through this trade mission,two major importers dramatically increased their prune imports from California and three journalists provided valuable media coverage to California prunes and their health benefits.

The California Prune Board - Japan office conducted spot television advertising to stimulate market demand. As a result, the average sales amount per 1,000 shoppers at supermarket stores per week in Tokyo increased by 21% during the advertising period (6 weeks) versus the same period before advertising (source: Nikkei POS Data). The residual effect can be seen even after the advertising period when sales continued 10% higher than the before advertising period.

Northwest Cherry Growers’ Market Development Program Benefits Local Economy. The Northwest Cherry Grower’s annually reports on the economic impact of exports on the local economies and growers. In 2008, exports generated a local economic impact of $560 million, bringing a $4.38 return on every export dollar realized. They reported that cherry exports, supported by $4.3 million in MAP funding over the past five years, generated $131 million in federal and state taxes. In addition, they estimated that over the past five years, an annual average of 31,128 jobs have been generated from the export of sweet cherries. The Grower’s have members in five states – Washington, Oregon, Idaho, Utah and Montana. The Grower’s reported a farmgate value of $128 million in exports in 2008. A little less than a third of the production of the five-state region was exported. A short crop in 2008, generated a 34 percent decline in total volume but the value of exports declined only about 25 percent. About 40 percent of exports are destined to Far East markets, with China an increasingly important growth market. Exports to China and Mexico increased in 2008, despite the production decline.

MAP funded promotional activities have helped create a dynamic, evolving export market for Northwest pear growers and shippers.

Convenience, a focus on nutrition, adaptation to local tastes, and acceptance as a desired staple in the baked goods markets has driven U.S. dehydrated potato advances in the Asian and Mexican markets. In addition to increased demands in these markets, dehy potatoes are increasingly a mainstay Food-Aid product on the African continent. To sustain exports, U.S. Potato Board strategies worked to increase overall knowledge of U.S. dehy potato products, and continued to build a foundation of technical knowledge regarding usage and applications.

Several key table-stock strategies contributed to growth. Specifically, the U.S. Potato Board program was able to increase overall demand by expanding the use of new varieties among retailers, hotels, and restaurants, and by introducing U.S. potatoes into local and regional cuisines. The Board also spurred consumer purchases with a concerted effort to deliver positive messages about U.S. potatoes. Ongoing market access work helped to keep markets open while creating new opportunities elsewhere.

The chip-stock program has accomplished significant gains in foreign markets through the education of foreign snack manufacturers about potential applications of nutritional U.S. potatoes and through sustained efforts to overcome import barriers. The largest growth was seen in the Philippines, which led with a 768% increase over the last year, and in South Korea, which registered a 448% increase in sales.

This year’s International Seed Symposium and tour did more than build relationships between U.S. growers and foreign importers and growers; it created new sales. Export growth over the past eight years can be attributed to the successful combination of the U.S. Potato Board’s annual seed tour/symposium, its variety trials and market visits, as well as ongoing work by the Industry and the USDA to gain access to key markets. Variety trials continue to pay off for the U.S. industry. As a vital aspect of the Potato Board’s seed program, the latest round of trials has identified promising new varieties and spurred commercial sales.

The U.S. Potato Board has been successful in expanding the sales of frozen potatoes in the “rice bowl” nations, Mexico and Central America by introducing new products and new applications specific to local cuisines. Demand was also built through the delivery of a positive nutrition message for potatoes in all markets. Future growth is ensured through exploration of new markets and a focus on market access.